How to Buy Multiple Properties and Retire Early Using Equity

If you’ve ever wondered how some investors keep buying properties while you’re still saving for your first or second one, the answer often comes down to equity.

The great news is you can use equity to buy property with little or no money out of your own pocket. In some cases, you can even leverage equity from a property you don’t own personally such as a family home.

Here’s how you can make it work and use it to build your property portfolio sooner.

‍

What Is Equity?

Equity is the difference between what your property is worth and how much you still owe the bank. For example:

• Purchase price: $550,000
• Mortgage: $500,000
• Equity at purchase: $50,000 (not all of this is immediately usable)

If your property rises in value to $655,000 after two years, you’ve built over $100,000 in equity without making extra repayments.

That increase in value can be used as a deposit for your next property, helping you move forward without waiting years to save again.

‍

How You Use Equity to Keep Buying

For most Australians, saving the first deposit is the hardest step. It can take five to seven years of disciplined saving. Once you’re in the market, the process speeds up. Instead of relying on savings alone, you can use equity growth to fund your next purchases.

Here’s how it often looks in practice:

• Year 0–2: You buy your first property with your savings (or assistance from family).
• Year 2–3: The property grows in value and you unlock usable equity.
• Year 3–4: You use that equity as a deposit on your next investment.
• Year 5+: You repeat the process, building a portfolio faster than you could by saving alone.

This is why equity is so powerful. It allows you to build momentum.

Plan Ahead With Property Calculators

To avoid guesswork, you can use calculators to estimate your equity and borrowing capacity. Tools like:

• Home Equity Calculator – shows how much usable equity you have.
• Borrowing Capacity Calculator – estimates how much you can borrow.
• Compound Growth Calculator – projects how your portfolio might grow over the long term.

For instance, if you hold just two investment properties worth $1.4 million, and they grow at Australia’s long-term average of 7% per year, those properties could be worth more than $5 million in 20 years. 

That’s the power of compounding growth when you start early and reinvest equity.

‍

What If You Don’t Own a Property Yet?

You might be able to use family equity to get into the market sooner.

Imagine your parents own a home worth $1.5 million with a $500,000 mortgage. That leaves them with $1 million in equity. At 80% loan-to-value ratio (LVR), about $800,000 is usable. If they guarantee $100,000 of that equity for you, it could cover your deposit. That means you can buy now rather than waiting years to save.

As your property grows in value, you can refinance and release them from the guarantee.

This is how families create generational wealth, helping you take your first step sooner so you can benefit from compounding growth.

‍

Why You Need the Right Strategy

Using equity isn’t just about borrowing as much as possible. You need the right strategy to make it sustainable. That means:

• Choosing properties in high-performing areas.
• Structuring your loans to avoid cross-collateralisation.
• Knowing when to prioritise growth and when to focus on debt reduction.

With a clear strategy, you can keep moving forward while protecting your long-term financial position.

Turn Equity Into Your Growth Engine

Buying property with no money doesn’t mean cutting corners. It means learning how to leverage equity strategically so you can grow your portfolio faster than if you relied on savings alone. 

Whether you use equity from your own property or a family guarantee, the key is to set up your portfolio with the right structure from the start. You don’t have to wait years to save another deposit. With the right strategy, equity can help you move forward faster and scale your portfolio in a sustainable way.

At Search Property, we help Australians build investment portfolios that balance growth and sustainability. Book your FREE discovery call and find out how you can use equity to achieve your property goals.