10
Part 10 of 12 · Growth
Recycling Your Capital: Valuations, Equity and Funding Your Next Purchase
Most of Eddie's deposits after the first came from equity, not savings. This guide explains how valuations work, how to calculate the equity you can actually use, and how equity can fund the next deposit without overextending, with real examples from $25,000 of deposit power for property number two to a $120,000 release in 2019.
Inside this guide
- What equity is, how buying below market value creates it, and the recycle loop that funded most of Eddie's deposits
- The four types of bank valuation, and why they can return different figures for the same property
- How to calculate usable equity on your own property, and why serviceability decides how much you can use
- How Eddie funded real purchases from equity
- How to choose a deposit size, how LMI is treated for tax, and why Eddie prefers to keep properties rather than sell
- A worked 2026 example
Tools in this guide
Worksheet: Your Equity Worksheet. Worksheet: Can the next purchase carry the debt? Plus an equity release checklist.
Your next step
Know your numbers, then talk to the team. Complete the equity worksheet in Chapter 7, then ask a licensed broker or lender to confirm your figures. If you'd like help planning and buying your next property, talk to the Dilleen Property team.
Up next
Part 11 · Scaling Up
Read Part 11 →
Your next step
Planning your next purchase?
Bring your equity worksheet to a conversation with our team.
Talk to the team →
On your reading path: Your library
Equity release depends on valuation, lender policy and serviceability. Confirm figures with a licensed broker or lender. Seek tax advice on LMI and deductions.
General information only. Not financial, credit, tax or legal advice. Historical examples are not a reliable indicator of future results. See the important information inside the guide.