05/06/2026
“I’ve got $300k of equity in my home. Should I buy an investment property?”
I hear this question every single week.
And the answer is almost always: “Maybe. But not for the reason you think.”
Here’s the truth most people miss 👇
When you use equity to invest, you’re not putting “a deposit” down.
You’re BORROWING the deposit.
Which means every single dollar of that new property is funded by debt. No 20% cash buffer to soften the interest cost. The whole thing earns interest from day one.
AND — from 1 July 2027 — if you buy an established property, you can’t offset those losses against your wages anymore. The old “negative gearing tax refund safety net” is gone (new builds are still in).
💡 One more thing most homeowners don’t know: if you’re a doctor, nurse, lawyer, accountant or in a few other approved professions, you can usually push past the 80% wall with an LMI waiver — borrow up to 90% or 95% WITHOUT paying any LMI. That alone can unlock another $100k–$150k of useable equity on the same home. Most brokers don’t bring this up. Worth asking.
So the question stopped being “do I have useable equity?” and started being “can my cash flow handle being short $1,500–$2,000/month while rents catch up?”
In the carousel I break it down in plain English:
▸ The TWO equity numbers (and why most only know one)
▸ Why 80% is the magic line (the LMI wall)
▸ The LMI waiver — which professions break the 80% rule
▸ The 4-step mechanic to unlock useable equity
▸ The hidden cash flow trap that wrecks first-time investors
▸ Real example — James, $700k Brisbane unit in 2028, under the new rules
▸ The 6 rules to stress-test BEFORE you sign anything
👉 Want us to check whether you qualify for an LMI waiver AND model your real useable equity + cash flow before you start property-hunting?
Comment LOAN below and we’ll DM you a free 15-min chat.
Free. No pressure. No fluff. Just numbers.
General information only. Not personal financial or tax advice. Speak to your accountant + a licensed broker before acting.
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