How to Use an Investment Property to Pay Off Your Home Loan Faster — and Build Wealth in Australia
- My Finance Agent
- 5 days ago
- 4 min read
For many Australians, the mortgage feels like a lifelong commitment. But what if investing in property could help you pay off your owner-occupier loan sooner and build real wealth in the process?
In this blog, we’ll explore:
How an investment property helps you build long-term wealth
Why saving alone is no longer enough in today's economy
The opportunity cost of waiting to buy an investment property
What smart investors across Sydney, Bathurst, NSW, and Australia are doing now
How to take the next step with a strategy built just for you
🏡 How Property Investment Can Help Pay Off Your Home Loan Faster
When you buy an investment property, rent it out, and hold it for 10+ years, you’re not just covering a mortgage — you’re building an asset that grows over time.
Over the last 30 years, property in Australia has delivered an average capital growth of 5.6% per year and average 6.51% year-on-year growth compared to 2024. Meaning the longer you hold a well-located investment, the more potential you have to:
Sell for profit and use the gain to reduce your owner-occupier loan
Access equity for future investments or debt restructuring
Hold for income-producing retirement assets
Owning one investment property could be the key to owning your home outright faster — and building wealth for the future.
💸 Saving Alone Is Not a Wealth Strategy
A common belief is: “If I keep saving, I’ll get ahead.” But with inflation rising and interest rates still below real cost-of-living increases, the numbers tell a different story:
Savings in the bank loses value over time when inflation outpaces interest earned
Meanwhile, property prices continue to climb in most major Australian cities
Simply saving without investing means missing out on the compounding growth available through property
If your savings aren’t working for you, they’re working against you.
📈 The Cost of Waiting to Invest
Here’s how fast the market has moved in just a few years:
In 2012, there were 159 Sydney suburbs with a median house price under $500,000
In 2025, it’s nearly impossible to enter Sydney’s housing market without leveraging equity or strategic borrowing
And it’s not just price — rental demand is also at record highs. With a 17-year low vacancy rate across Australia, landlords are in a strong position to generate income.
👵 Why Wealth Building is More Than “Paying the Bills”
Here’s a confronting stat: Most of Australians rely solely on the age pension in retirement — and that number is growing.
With life expectancy rising, relying only on a superannuation or a pension can leave many retirees struggling. The solution? Owning assets that grow and provide income — like property.
🔒 What Is a “Smart Debt” Strategy?
We’re not talking about debt for the sake of it. This is about:
Using income-producing property to improve household cash flow
Creating options for reducing your home loan balance sooner
Taking a long-term, low-risk approach backed by numbers
Ensuring everything is tax-compliant and ATO-approved
👉 We go into full detail with our clients during a Wealth Strategy Meeting. You’ll get real, personalised insight into what’s possible for your situation. Get a call-back to get started.
📋 FAQ – Using Property to Pay Off Your Home Loan & Build Wealth
Q: Can an investment property help pay off my mortgage faster?
Yes. With the right structure, the cash flow from your investment property (rental income + tax benefits) can be redirected to reduce your owner-occupier loan repayments or principal over time. Read our blog on How Rental Income & Tax Benefits Can Boost Your Cash Flow in 2025
Q: Is investing in property still worth it in 2025?
Absolutely. Property values have continued rising, vacancy rates are at 17-year lows, and demand across Australia remains strong. Smart investing now can still deliver long-term wealth gains. Learn more about the Australian property market in 2025.
Q: Is saving money enough to build wealth today?
No. Inflation often outpaces interest earned from bank accounts. Without investing your savings in growth assets like property, your money’s value declines over time.
DISCOVER MORE >
👥 Want to Explore Your Wealth-Building Strategy?
We believe investing should feel strategic — not stressful. In your Wealth Strategy Meeting, we will:
Provide strategies to pay off your home loan faster
Collaborate with your advisory team (or help you build one)
Run a comprehensive financial review (cash flow, risk, opportunity)
Optimise your debt structure, model investment scenarios, and identify your earliest possible loan payoff point
Design a strategy that is tax-efficient and compliant with ATO guidelines
Call us on (02) 8313-8400 or request a call back.
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