If you want to grow your investment property portfolio, it pays to have a solid strategy in place. 

Almost nine years – that’s how long it can take to save a 20% deposit for a home in parts of Australia.

Cobbling together the deposit for your next investment property is tough, no matter how many properties you have under your belt.

But with the right strategy and long-term planning, you’ll be well-armed to overcome any challenges along your investment journey.

Here’s a step-by-step process on how you could grow your investment property portfolio sooner.

Step one: Secure your deposit

Traditionally, buying additional investment properties requires refinancing your existing properties and using the equity to help form a deposit. This can come with extra fees, paperwork, possible lender’s mortgage insurance, credit checks and takes months to process.

Thanks to innovations in financing, companies like Futurerent are making it easier to buy your next property.

Futurerent helps investors grow their property portfolios by giving them up to $100,000 of rental income in advance, which investors can use to fund their deposit when buying another property. Your rent in advance from Futurerent can also be used to do renovations, or otherwise reach better financial footing.

“The banks make increasing your home loan by $100,000 as difficult as getting a $1,000,000 home loan,” Futurerent CEO Godfrey Dinh explains.

Given Futurerent is not a loan and is only an advance of rental income, it is a much simpler and faster process.

“Most borrowers don’t realise that by increasing your home loan, you’re adding years of interest that snowballs over time. To avoid this cost, people are using Futurerent for their deposit.”

As a simple and efficient way to make your next move without having to compromise on budget or pay LMI, Futurerent offers property investors an innovative new solution for their deposit.

Step two: Select a financing strategy

A financing strategy refers to how you’re going to buy the investment property and the type of mortgage that will best meet your needs.

Seek a lower interest rate to keep your borrowing costs low. Picture: realestate.com.au/buy


Dinh recommends a strategy that will maximise your serviceability and your borrowing power, i.e. selecting a loan that will be easy and inexpensive to repay, while also offering you a substantial amount on good terms.

“Not all loans are created equal. For example, there are low, fixed rates in the market, which can line up nicely with some investors’ long-term objectives. However people generally don’t fix [their rate] because they want the flexibility to draw out more.”

This is another common reason why investors use Futurerent – they can get the best deal possible and reduce their interest costs, helping investors improve their serviceability and enjoy the flexibility to access money whenever they want.

Step three: Seek properties with hidden value

While you’ll need to consider your own circumstances, by purchasing property you can add value to, you’ll be able to increase your income and your equity with each purchase.

Dinh explains: “You do that by finding a property that has been neglected, or buying in a market where there has been rental growth that can be realised with simple renovations. This might be a fresh paint job, improved lighting, renewing old flooring, or installing air conditioning.

“We also see a lot of savvy investors purchasing properties that can be improved, to add another income stream. For example, adding a granny flat, or even a bedroom.”

Step four: Consolidate your position and plan your next purchase

With increased equity and rental income, you’re now in a better position to continue growing your portfolio.

Futurerent allows you to access up to $100,000 for each investment property you own. Picture: Pexels


Buying more properties means taking on more debt, so structuring your finances in a way that maximises your serviceability will be key to enabling further sustainable growth.

With Futurerent, not only are you getting your rent in advance, but you also continue to earn up to two thirds of your rental income while repaying Futurerent.

Being clear about the numbers will help you work out your sweet spot: the amount of rental income you can afford to access in advance while still being able to afford your mortgage repayments and other property expenses after the instalments to Futurerent.

Dinh has seen more property investors using Futurerent across multiple investment properties to maximise the rent they can get in advance.

“Because we give investors up to $100,000 per investment property they own, they can access more rental income as they accumulate more property, making it easier to keep growing,” he says.

After all, why stop at just one investment property?

Posted by Charlie Brown