The 3 Finance Mistakes That Stop Investors Scaling Past Property #2
More than 90% of property investors in Australia own just one or two properties, according to the ATO. It’s not due to a lack of ambition, it’s usually because of avoidable finance mistakes. What seems like a small decision early on can compound over time and quietly block access to the next deal.
We see it all the time, investors rush into the wrong loan, structure things poorly, then wonder why they’re stuck. These aren’t minor oversights. These are the finance mistakes that quietly kill your entire portfolio strategy. In this article, we expose the three biggest traps stopping most investors from scaling, and show you how to avoid them before it’s too late.
Mistake #1
Choosing a Generalist Broker Instead of an Investment-Focused One
The broker you choose will either help you build a scalable portfolio, or stop you from growing past two properties. It’s one of the most common finance mistakes property investors make early in the journey.
Most brokers are generalists. They’re focused on the deal in front of them, not the two or three properties you’ll want to acquire next. They rarely understand how borrowing capacity, buffers, or debt-to-income ratios impact long-term lending strategy.
Investors come to us stuck, not because they bought a bad property, but because they worked with the wrong broker. Their loans are cross-collateralised, the repayments are too high, and there’s no flexibility to refinance or restructure.
Difference really matters. A generalist might get you the first deal, but they won’t build you a property investment strategy for long-term success, that’s why we only work with mortgage brokers who specialise in investment finance, the kind who understand cashflow, equity release, and how to prepare your structure for scaling.
They’re investors themselves and speak the language of lending strategy, not just loans. This is the standard we hold across every portfolio we support. If your broker isn’t planning 2–3 steps ahead, the strategy is already broken.
Mistake #2
Structuring Loans Poorly or With No Future Plan
In most cases, it starts with what seems like a small decision. Many investors stall after two purchases because they structured their loans with no growth plan. They take the first loan they’re offered without considering long-term impact.
Cross-collateralised loans, over-reliance on a single lender, and purchasing under personal names without tax planning are silent portfolio killers. We’ve seen clients walk in with strong incomes and good equity but zero flexibility.
Their finance setup has backed them into a corner, preventing them from refinancing, releasing equity, or adjusting loan terms. When the structure is reactive, the portfolio stalls before it even starts.
Our approach flips the process. We reverse-engineer the portfolio plan by starting with finance, not the property. Every loan needs to support the next two or three deals, not just the one in front of you.
A sustainable portfolio is never built around one transaction. It’s built around momentum, buffers, and flexibility to keep moving. The right loan strategy unlocks more options, better deals, and scalable results.
Mistake #3
Not Leaving Enough Buffer or Planning for Holding Costs
Too many investors think the goal is just to buy. They stretch every dollar to get into the market, then forget that holding the asset long term is what actually builds wealth. One of the most damaging finance mistakes property investors make is ignoring cashflow, buffers, and the reality of rising holding costs.
When interest rates rise or vacancies hit, unprepared investors panic. They’re forced to sell early or get knocked back by lenders when applying for the next loan. This mistake doesn’t just kill growth, it sets portfolios backwards.
To avoid this, we assess every property beyond the purchase price. We focus on holding performance from the start. Every deal must pass a detailed due diligence checklist to ensure it won’t derail your plans.
This includes:
- Flood zone and bushfire risk
- Local vacancy rates
- Rental income reliability
- Insurance availability and cost
- Property condition and age
- Cashflow buffer after expenses
We always say it’s not just about buying, if you can’t hold the property, don’t buy it. Long-term investing is built on stability, not stress, that’s why we structure every portfolio with real-world buffers, so you’re never caught off guard when markets shift.
How to Avoid These Mistakes (And Scale Smarter)
Most investors think buying a property is the strategy, when it’s only the execution. Avoiding the most common finance mistakes property investors make starts well before loan pre-approval or market selection. The real work happens when you reverse-engineer the portfolio around your goals, income, buffers, and risk tolerance.
This is the reason every step we take is driven by strategy, not emotion. The right team, paired with the right process, is what separates stalled investors from those who scale. As a result, we focus on portfolio-fit, borrowing capacity, and forward-planned lending structure to make growth predictable and repeatable.
It also means avoiding the noise. Forget chasing the hottest suburb or following headlines. Sustainable growth comes from data-backed market selection, balanced capital growth and yield, and a structure that supports holding power.
If you don’t build for scale early, you’ll spend years fixing mistakes that could’ve been avoided. We’ve helped countless investors move from stuck to scaling by applying the exact principles in this article. If you’ve already made some of these mistakes, it’s not too late, but waiting longer will cost more.
You don’t need 10 properties to retire. You just need the right ones, bought in the right way, backed by the right plan.
Book a Clarity Call with Kev Tran Group today.
We’ll map out a custom plan to help you grow your portfolio, without falling into the traps that stop most investors.
Visit kevtran.com.au.
