The Aggressive Debt Reduction Strategy That Can Pay Off Your Home in Under 7 Years
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Dec 23, 2025
Discover how a family paid off nearly $1 million in mortgage debt in just three years using a three-property investment strategy. Learn the art of leveraging low debt-to-income ratios and buying in early-cycle markets to accelerate equity creation. The discussion unfolds critical insights on refinancing to ease cash flow pressure and the strategic timing of selling versus holding in rising markets. This blueprint offers a practical approach for homeowners eager to eliminate their mortgage years earlier than anticipated!
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Three-Property Case That Nearly Cleared $1M
A family in Geelong used three property purchases to aggressively cut almost all their $1M PPOR debt in ~3 years.
They combined buying in early-cycle markets, value-add flips and market timing to extract roughly $1M in equity gains.
insights INSIGHT
Use Productive Debt To Reduce Overall Debt
Taking on more debt strategically can be used to reduce total debt faster when assets appreciate strongly.
Low initial debt-to-income gave the family capacity to buy investments that later funded PPOR reduction.
insights INSIGHT
Combine Market Growth With Value-Add Work
Combining market appreciation with deliberate value-add renovations multiplies equity outcomes.
The client's flip in Geelong plus Rockingham growth delivered outsized proceeds compared to passive holdings.
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Paying off your home in under 10 years is possible, but it requires a strategic mindset, a high risk tolerance, and a willingness to take on debt in the short term to reduce debt in the long term. In this episode, we break down a real client case study where a family with nearly $1 million owing on their Geelong PPOR used a three-property investment strategy to eliminate almost all of their mortgage in just three years.We unpack exactly how they did it:• leveraging a low debt-to-income ratio• buying in early-cycle markets like Rockingham, Perth and Geelong• using value-add plays to accelerate equity creation• selling at the right time, not too early• refinancing to reduce cash flow pressure• using equity to stay afloat during rising interest ratesYou’ll also learn why timing the market matters, when to refinance in a rising cycle, how to decide between selling vs. holding, and what mindset you need if you're considering an aggressive PPOR debt-reduction strategy. This is a real, practical blueprint for homeowners who want to break free from their mortgage years, or even decades earlier than planned.Key Themes: - how to pay off mortgage fast Australia- aggressive debt reduction strategy- property investing to pay off PPOR- equity extraction strategyAbout the Folio Property PodcastEach week, Reece Beddall & Lachlan Delahunty break down the biggest conversations shaping Australian property. From market cycles to debt, strategy, data, and real-world insights, we make property simple, honest, and practical.📍Visit Our Website: https://follio.com.au/📩 Contact Us: info@follio.com.au📲 Follow Us on Social:Instagram: https://www.instagram.com/folliopropertypod/TikTok: https://www.tiktok.com/@folliopropertypod Spotify: https://open.spotify.com/show/4Akt4N53zsb4ldzFNlTwad?si=AFEgYOAiSh2QGbK8AfFLywLachlan Delahunty: https://www.linkedin.com/in/lachlandelahunty/Reece Beddall: https://www.linkedin.com/in/reece-beddall-294557b3/If you enjoy the episode, hit Like, Subscribe, and Comment to support the channel and join the conversation.#propertyinvesting #refinance#debtstrategy#realestateinvesting#perthproperty#australianpropertymarket#mortgagerepayment#propertystrategy#equitygrowth#financialfreedom
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