Building a property portfolio on modest income

I’m 29. I have one investment property. My goal is to build up a portfolio to hold for the long term. My concern is that I don’t see how to mitigate the borrowing power issue as I will soon enough hit a wall. Yes, earn more money is the obvious answer! But are there any other suggestions out there of how to handle this?

 

Uber, second job, illegal alleyway stuff.
Or....
Get a partner with a high income

 

Times have changed.
Rules of the game have changed.
Players need to change their strategies to keep winning.

 

Earn more money from a 2nd job, a 3rd job, a new and better job.... and with whatever available capacity you have right now, buy cash cows.

Then use the extra income from the 2nd job, the 3rd job, the new and better job and the cash cows , to pay down debt ... PPOR debt first.

Its essentially dividend reinvestment ... and it will work.

The removal of debt is rewarded on servicing calculators . The attainment of growth is not. Therefore debt reduction is far more important to future borrowing capacity than the attainment of growth. Growth doesnt improve borrowing power. Debt reduction does...

Strong cash flow also aids you in holding for longer, especially because P&I cliffs are now a thing. P&I cliffs never had to be considered pre APRA. But now they are almost guaranteed to impose themselves on any investment portfolio.

Dividend Reinvestment/Debt Reduction. It will be slower than you'd like. It will require patience... but it will work.

 

Thanks so much for your thoughts, much appreciated.

 

To be able to able to provide as much financial freedom as possible, as soon as possible. I would like to have the choice re keeping the day job and move into full-time property investing and development by 2028.

 

If all you could ever service was the main residence and one IP you could still do it slowly. You just need to pay down the main residence while debt recycling. Soon as loans reduce and rents and income increase you will make it to 2 IPs and then 3.