Property investors hit a wall when they can't borrow more, even with growing equity. The key is managing serviceability—how much debt you can actually service—on each deal so you can keep buying and avoid getting stuck after your second or third property.
So there are 2 figures that every property investor is juggling through the entire lifecycle of their investment journey. And these 2 figures are, number one, your serviceability. Second figure is your buying power. Now, one of these is always gonna be a limiting factor. For most investors, the biggest one of these is gonna be your serviceability. Most people ultimately, after they buy a few properties, they're gonna get their equity position going, if they've done the right deals, of course, and they're gonna have way more equity than the servicing that they have to be able to access that equity. and then be able to go and expand their next portfolio. So what we've gotta focus on doing strategically is that we've gotta start setting every deal up which is gonna support you to go to the next deal and the next deal after that and make sure you don't get stuck after property number 2 or 3. And so make sure that you can actually create the financial freedom that you want out of building a property portfolio.
