‘Risks magnified’ when investors use equity from homes to buy more

A common strategy used by property investors around Australia to amass large portfolios of real estate is potentially very risky, experts warn.

More than half of all property investors are using equity in their homes or other investments as a way to pay for a deposit on another property, with lenders allowing them to tap into house price growth seen during the property boom.

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PHOTO: A common investor tactic is being described as risky. Photo: Virginia Star