Should I Pay Off My Mortgage or Invest in Property

The decision that changed my life (and could change yours too)

This is the question I get asked more than almost any other.

“Tim, should I pay off my home loan or buy an investment property?”

For years, I chose the first option. It felt safe. Secure. Like I was doing the right thing for my family. But after building a $6 million portfolio and running the numbers on what could have been, I now see that decision cost me far more than I expected.

In this article, I’ll share how I made the call, what I learned looking back and what you should consider before you do the same.

Paying Down the Mortgage Felt Like the Right Move

When my wife and I bought our first home in Sydney in 2011, we were focused on stability. We had two young boys. We wanted the security of a family home. Paying down the mortgage felt responsible.

We chipped away at it for years and we thought we were getting ahead.

In reality, we were sitting on huge untapped wealth potential.

The Turning Point: Running the Numbers on a Different Path

Fast forward to today. I’ve built a portfolio worth over $6 million with about ~$1.3 million in debt and it has changed our lives and opened up the potential for the retirement of our dreams.

But what if I’d started investing earlier instead of paying down my mortgage?

I did the analysis. If I’d started investing in 2013 using the equity I already had and spaced out purchases over a few years, my portfolio could have been worth over $9 million by now.

That’s a $3 million difference in net value—just from changing the timing and approach.

It’s not about being reckless. It’s about realising the cost of waiting.

Why Investing Earlier Creates a Bigger Impact

Paying off your home loan gives you peace of mind. It removes debt and feels good. But investing in the right property at the right time gives you growth. That growth compounds. It snowballs. It can then give you the retirement that you’ve dreamt of.

Here’s what I learned:

• The power of leverage i.e. using other people’s money (the bank’s!)
• The earlier you invest, the more you benefit from compounding capital growth
• Equity can be reused to buy again, especially in fast-moving markets
• Increasing rental income helps cover holding costs and improves cash flow
• Smart financing like interest-only loans, lines of credit and offset accounts can support both growth and security

The Mistake That Held Me Back

The mistake I made was waiting too long to start investing and then too long in-between investments. I bought a unit in 2016 that underperformed. Then I waited four more years before buying again. That gap cost me the chance to tap into multiple growth cycles.

If I had just started sooner and backed myself with the right team around me, I could have built my portfolio faster.

What I’d Tell My Past Self

If I could go back to 2011, I’d say:

• Get a solid team around you early—a buyer’s agent, mortgage broker, and accountant to help build your strategy and guide your journey
• Focus on markets with strong capital growth and yield potential
• Don’t wait for perfect conditions. There is no such thing
• Look for ways to maximise your finance options
• ….and most importantly, take action!

What This Means for You

If you’ve got equity in your home or you’re ready to invest, the question isn’t “Should I invest?” It’s “What will it cost me if I don’t?”

You don’t need to do it all yourself. That’s exactly why I started brickstowealth. To help time poor, busy professionals like you, make smart, confident investment decisions that can change your life.

Ready to See What’s Possible?

If you’re stuck in indecision or worried about making the wrong move, I’d be happy to walk you through what your next step could look like.

Visit brickstowealth.com.au, connect with me here on LinkedIn or book in the 30 minute call that could change your life!

Let’s look at your numbers and figure out if your money could be doing more.