How to Use Equity to Invest in Off the Plan Properties

Already own a home and thinking about growing your property portfolio? Using your home’s equity is one of the smartest ways to invest — especially when it comes to buying off the plan.

Here’s how equity works, and how you can use it to secure your next property before it’s even built.

What Is Equity?

Equity is the difference between your property’s current value and the amount you still owe on your home loan.

Example:

• Property value: $900,000
• Mortgage remaining: $500,000
• Available equity: $400,000

But not all of that equity is usable. Lenders typically let you access up to 80% of your property’s value (minus your existing loan).

Usable equity formula:

• 80% of property value – current loan = usable equity
• In the example above:80% of $900,000 = $720,000$720,000 – $500,000 = $220,000 usable equity

This is the amount you could potentially use as a deposit for your next investment.

Cosmopolitan, Parramatta | Off the plan property | Secure with $20k and $563 x 137 weeks

Why Use Equity for Off the Plan?

Off the plan properties are often purchased months or even years before completion. This gives you time to plan and benefit from price growth — all while locking in today’s price.

Advantages of using equity:

• No need to save a separate cash deposit
• Leverage your existing property to grow your portfolio
• Spread your risk across multiple assets
• Benefit from long-term capital growth in new areas

It’s a low-stress way to build wealth using what you already own.

Rhodes Bay | Off the plan property | Secure with $20k and $670 x 115 weeks

Step-by-Step: Using Equity for Off the Plan Investment

1. Get a Property Valuation

Ask your lender or broker to organise a valuation of your existing home. This determines how much equity you can use.

2. Calculate Your Borrowing Power

Lenders will assess your income, expenses, and existing loans to work out how much you can borrow using your equity.

3. Set Your Investment Budget

Use your equity plus borrowing power to determine your max purchase price. Remember to include other costs like stamp duty and legal fees.

4. Choose the Right Off the Plan Property

Look for projects in growth areas with solid rental demand, good infrastructure and developer credibility.

5. Use Equity as Your Deposit

Your lender can release the equity as a loan top-up or line of credit. This forms your deposit while the rest is paid at settlement.

6. Organise Pre-Approval

Get your finance pre-approved so you can confidently sign a contract and secure the property.

7. Pay the Balance at Settlement

Once the property is built, your remaining loan is processed, and you complete the purchase.

Danks St District By DASCO | Off the plan property | Secure with $20k and $969 x 80 weeks

Key Benefits of Off the Plan Investments

When you combine equity with off the plan opportunities, you unlock major advantages:

• Lock in today’s price before the market moves
• Potential for property value to rise during construction
• Time to plan finance and manage tax strategy
• Access brand-new, low-maintenance investment properties
• Depreciation and tax benefits (especially for investors)

This strategy is popular among investors who want to build wealth without draining cash flow.

Auburn Square, North Village | Off the plan property | Secure with $10k and $391 x 110 weeks

Use Coposit to Buy with Confidence

Want to invest in off the plan properties but don’t want to use all your equity at once? Coposit gives you more flexibility.

How Coposit works:

• Secure a property with as little as $10,000
• Pay the rest in weekly instalments during construction
• No interest while you pay
• Keep more of your equity untouched for future investments

It’s the smarter way to leverage your assets without overcommitting.

Horizon Hurstville | Off the plan property | Secure with $10k and $401 x 57 weeks

How to Invest Using Equity and Off the Plan Strategies

• Tap into your home’s value without selling
• Grow your portfolio with little upfront cash
• Choose properties in high-growth, low-maintenance areas
• Maximise your return through timing and tax strategy
• Use Coposit to reduce upfront pressure and buy sooner

The Markets Residences | Off the plan property | Secure with $10k and $563 x 40 weeks