When it comes to building wealth through property, the decisions you make today shape your financial future. Recently, a TMAP student faced a common question: Should I buy one property or two? While the answer might seem simple at first, the details reveal why the strategy you choose matters. Let’s break it down.
The student was considering using their self-managed super fund (SMSF) to purchase an NDIS property. Here’s what the situation looked like:
This approach had its perks. The property could pay itself off within a year due to its strong returns. However, the student would need to commit nearly all their available funds—both inside and outside super—to make this happen. While the potential returns were attractive, this strategy locked their money into super, limiting their flexibility.
The second option was to purchase two properties by splitting their resources:
By spreading their funds, the student could buy two properties without exhausting their cash reserves. This approach left room for future investments and ensured their finances remained adaptable.
While the idea of dropping all your cash into super might seem tempting, it’s worth considering the trade-offs. A self-managed super fund offers the advantage of using funds already in super to grow your portfolio. Adding external cash limits its accessibility, as super funds are typically locked until retirement.
By pursuing the two-property strategy first, the student could maintain financial freedom while still building their portfolio. Once their investments in the $480,000 property and Austral option deal grew in value, they could revisit the NDIS property idea with a stronger financial position.
One of the most common mistakes investors make is going all in too early. Pouring every dollar into one high-cost property—like a dream home—might feel like progress but often becomes a financial anchor.
Here’s what happens:
Instead, a measured approach—like the two-property strategy—keeps the door open for further investments. It’s about keeping momentum, not hitting a financial wall.
Wealth building is a journey, not a sprint. By focusing on smaller, strategic steps, you set yourself up for sustainable growth. Start with what’s manageable, like the two-property approach, and build from there. When the time is right, bigger opportunities—like an NDIS property—will naturally fit into your plan.
The road to the top is all about balance, patience, and keeping an eye on your long-term goals.
Ready to take your first step? TMAP is here to guide you.