During an OpenCorp wealth creation workshop, OpenCorp director Michael Beresford explained how through the magic of compounding returns on properties a mortgage holder can get out of debt in a third of the time. 

“There are two ways you can do that in 10 years and not 30. The first way is to throw a bucket load of cash flow and sacrifice your lifestyle to pay off the mortgage as quickly as possible,” Mr Beresford said.

“Understanding compound growth is a much smarter way to pay the mortgage off.”

He explained that investors who are looking to get ahead can use the equity in the family home to purchase two investment properties.

With the rules of compound interest, growth on the property would see it likely double within a 12-year period. 

“What we do is we hold the two investment [properties] for a 10-year period. It might be nine, it might be 12 years, but the properties will double,” Mr Beresford said.

Using the example of all three properties being worth $500,000, the property investor explains that once the investment properties have doubled to a combined value of $2,000,000, an investor can simply sell, pay the capital gains tax and use the remaining money to pay off all debts.

“If having your own home paid off is one of your goals, this a far more effective way to do it in a much shorter time frame,” Mr Beresford said.  

“Acquiring low cost to hold investment properties to give us compound growth over time. All we are doing is real wealth creation through compound growth.”

The property adviser explained that investors do not need a large portfolio to be successful at wealth creation, instead they simply need to hold for a longer period of time.

“It’s not getting rich quick, it’s not bitcoin, it’s everyone jumping on board something, it’s not how we get success,” Mr Beresford said.

“What people don’t understand with compound growth, regardless of where you sell it, you make the same amount in the next unit of time as what you made since the start. Buy and hold long term.”

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

more on this topic

Property

Zagga's ninth anniversary sees focus on investor education in real estate private credit

In a significant milestone, Zagga, a key player in the Australian real estate sector, is celebrating its ninth anniversary with a renewed commitment to investor education. The company has grown ...Read more

Property

Australian property’s quiet pivot: resilience hides a new competitive map

Australia’s housing market remains sturdier than the macro noise suggests, but the sources of resilience have shifted. For operators, the profit pool is migrating from ‘volume at any price’ to ...Read more

Property

Gen Z’s 5% deposit rush: how policy‑driven demand is reshaping Australia’s housing value chain

A government-backed 5% deposit guarantee has triggered a surge in first-home buyer intent among Gen Z, pulling forward demand and resetting competition across banks, brokers and buildersRead more

Property

Cautious bidders, smarter sellers: a Queensland auction case study on repricing risk

Queensland’s auction market has hit a caution cycle as buyers price in higher borrowing costs, global uncertainty and cost-of-living pressure. Clearance softness is forcing agencies to re-engineer ...Read more

Property

Trust, technology and triage: what NSW’s ‘name and shame’ signals for real estate governance

NSW’s latest enforcement action on real estate trust accounts isn’t a one-off embarrassment; it’s a stress test of sector governance. With licences suspended and penalties applied, the message is ...Read more

Property

Vacancy is rising, demand is resilient: A case study in defending yield as Australia’s rental cycle rebalances

After a blistering run, Australia’s rental market is loosening at the edges. Vacancy is edging up off historic lows, rent inflation is set to moderate into 2026, yet underlying demand remains ...Read more

Property

Don’t lose the deposit: A case study in stopping real estate payment fraud — and the ROI for doing it

Deposit redirection scams are quietly eroding buyer savings and agency reputations in Australia’s property market. This case study unpacks how a mid-tier real estate group redesigned its settlement ...Read more

Property

The $12m threshold: Why portfolio value, not property count, now defines Australia’s investor elite

The old yardstick of six properties as shorthand for investment success has been overtaken by a harsher reality: in today’s market, elite status is defined by balance-sheet strength, not asset countRead more