How Would You Invest Your Excess Cash | Investment Property FAQs | Property Investment in Australia

October 10th, 2023

Given limited funds, many investors debate between buying one more expensive property or two cheaper properties. At Empire 8 Property, we frequently help clients weigh pros and cons to optimize their strategy. In this piece, we’ll analyze factors driving one vs. two property investments to illuminate the smarter path based on your situation.


The Single Property Route

Imagine you have $140,000 that you’re looking to invest. You have the option to use this money as a 20% down payment on a $700,000 property. By doing this, you can avoid having to pay for lenders mortgage insurance while also gaining control over a larger and more valuable asset. Over the course of 5 to 10 years, you can expect to see gradual growth in the value of this single property, steadily increasing your investment.


However, putting all your eggs in one basket concentrates risk. And restrictive lender policies may curb your borrowing capacity. Limiting yourself to one investment property restrains portfolio growth potential.


Unleash Greater Potential with Two Properties

Instead of one property, you could split that $140,000 across two deposits, like $70,000 each. This allows purchasing two $500,000 properties. Yes, you pay lenders mortgage insurance, but double exposure to the market unlocks greater upside.


With savvy area selection, both properties experience healthy growth, say 7% annually. But now equity and rental income grows on two properties rather than just one. The compounded gains outpace the insurance costs.


Spreading funds strategically diversifies your risk as well. You avoid missing opportunities due to restrictive bank policies. And you gain flexibility to refinance and withdraw equity for future investments.


Your Team Matters

Successfully completing a two-property acquisition relies heavily on having the correct team in your corner. Empire 8 Property has the capability to assist in negotiating with lenders, maximizing your borrowing capacity, and pinpointing promising areas for growth. With the proper assistance, buying two properties can significantly boost the expansion of your real estate portfolio.


Allow us to evaluate your unique circumstances in order to ascertain whether dual investments offer the most advantageous way forward. We will create a strategy based on data that is customized to align with your investment objectives.


Ready to Grow Your Real Estate Portfolio?

The choice between one property or two depends on your finances, risk appetite, and future aspirations. By taking a strategic approach, dual investments often maximize portfolio growth. To explore your options, contact Empire 8 Property at 0433 213 993 or click here to request an investment analysis. Let’s build your wealth faster together!