Two numbers in. See how disciplined extra repayments, equity release, and debt recycling can turn one home loan into a property portfolio over 25 years. Built for property investors, owner-occupiers, and anyone weighing their next move.
Adjust the inputs to match your situation. The calculation runs the same debt-recycling model used in the story above. Numbers update live.
This shows what leverage on the numbers detailed could support, and what income is needed at each step of the way. Equity opens the door. Income determines the ability to walk through it.
Equity opens the door. Income determines the ability to walk through it. The figure beside each property is the combined household income you would need at the time you bought it, to cover every loan you hold by then plus your living costs, after your rent is counted. These are indicative figures, not a lender assessment, and they exclude your own borrowing history and the policy differences between lenders. The model stops buying once a purchase would need more income than your household has at that point, and because your income grows over time, that limit rises year on year. So the list below is not a target, it is a ceiling. If your income can stretch further than the model assumes, speak with Charter Finance rather than relying on this tool.
Most owner-occupiers treat the mortgage as a 30-year sentence. We treat it as the engine. Every extra repayment converts cashflow into equity. Equity is what funds the next property. The investment portfolio is a downstream consequence of how the home loan was structured in the first place.
This calculator illustrates a debt-recycling strategy. Whether this strategy is appropriate for you depends on your tax position, lender policy, your investment goals, your borrowing capacity, and other factors not modelled here. Charter Finance is not a tax adviser. Speak to a qualified accountant or wealth planner before implementing. General information only.