There are few threads on currently on how to grow multimillion $$$ portfolio or What strategy or lot of newbies asking question what should I buy.. so I thought I ll share my story..
Conclusion: started with $58k cash in 2012 and have around 2.5 M portfolio now across the country!
(Sounds good.. but not as easy as it reads)
Here it goes.
Bit about me:
I am 30 and arrived in Australia with little English and $2000 in pocket to study in one of highly regarded university to study.. 3-4 years later I got degree and started working in SME and Corporate world like everyone else. Everything I earned, I saved some and spent most on travelling and seeing different part of this amazing country.
late 2011.
Decided to invest in real estate market.. Bought a land (that nobody wanted it for last 6 months) with in sydney metro area. Paid $56K deposit and $1000 for conveyancing cost.
Deal:
$280k land (no stamp duty as it was vacant land and NSW had no stamp duty Under $300k for land)
$600K Build cost (duplex build cost inc sell, hold, design)
$880K total cost
Sold for $1.2M (Completed in year 2014)
Year 2012:
Refinanced above land and bought a house on 1/4 acre block in regional NSW.
$250K purchase and has potential to put townhouses on it.. current market indicates that circa$300k townhouses are flying out of door at the moment..
To the the date, haven?t looked at what and how many we can fit on it.
I have left this site for rainy day development.
We funded this purchase from equity draw form land above.
Mid 2012
Bought 1/4 acre with full brick house in Brisbane metro. We can subdivide this in two lots and retain front and build at back.
It was a deceased estate. I picked it up at right price. Used equity to purchase this site and used our own funds to complete reno.
Year 2013
Spent time learning and developing Sydney site. It was a steep learning curve. Developing properties is not easy and not for faint hearted ppl. It requires time, effort and money (lots and lots of it). Ppl who develop can back this up. It is not easy to develop and to make matter worst, I picked up worst site ever to develop on .
In way it was good, because now I learnt all tricks in a book and went thru hell and back. It took toll but in a good way. It will pay off for any future developments.
Around AUG 2013, We bought a potential triplex site in Perth metro and I am pretty happy with it so far..
Nov 2013, we bought a site in Melbourne metro with vision of developing in to 4 townhouses, asked for longer settlement and settled on it on feb 2014.
I started to educate myself about different planning code and requirement related to development for most metro areas around major metro city in country (Except SA, Adelaide)
I was no longer in market to buy as i maxed out our borrowing capacity. However, I was still assessing and scanning properties that I can develop on. That lead me to suggesting it to friends and some SS members.. Needless to say they are happy with their purchase and they did pay me handsome Spotters fee, which really came handy as I was paying mortgage for construction loan (that was producing any income)
Year 2014:
We settled on Melbourne deve site on early 2014.
Sold Sydney development in late 2014.
Year 2015:
We are about to knock out house on Melbourne and start 4 townhouse project.
Bought a new site in Melbourne with view of potentially developing 3 story +basement apartment in bayside suburb.
This is my development journey so far and it hasn?t been an easy one.
I am glad I found somesoft and my broker (now good friend) to get me where we are today. Before I move on to what I had to scarify to get here, I must credit few ppl
Shahin from Elite property finance (broker here) for crunching numbers and getting unbelievable deals thru in lightening fast speed. It is a tedious work of getting loan thru but he makes it look really easy
i must say most of my success credit goes to shahin..
.
MTR for sort of being helpful in most deals and assessing numbers and market and provide excellent and honest market commentary
RPI for doing all legal framework and planning report for Brisbane purchase.
Oc1 for doing hard yard to get thru Melbourne deal, plans, permits and construction now.
I have met few other amzing ppl thru forum, MsAil,monalisa, nhg to name few.
Needless to say my wife and my family is been backbone of above story.
What did I scarify (Sort of)
No PPoR
No Kids (As yet)
No fancy car (I just rewarded my self with new $25k car)
Frugal lifestyle for 2-3 years (And counting)
Why chose above journey/strategy?
We are young couple and don?t need a big house and cant afford to live far off city, so never felt a need of McMansion.
Everything I bought for my personal use, I paid cash for it (Car, furniture, overseas trips around the wold) that allowed us to borrow money for IPs.
I say to ppl that all our properties are female properties, it can produce more dwellings and mitigates risk of negative market movements. I chose to manufacture growth rather than Mr Market dictating my journey and path.
It may seem that 2.5 or 3m portfolio is big or makes us look rich? it is hardly the case.. i am just average joe.. still work for someone, spent most of time travelling around country and world for work.
most days of the week I hardly have around $100 to $200 in my savings account. Our PAYG jobs helps us to pay our living expenses and ongoing property expenses and whatever we earn thru development just get reinvested in to buying, developing more properties.
This is my story and I am sticking to it.... (mental note for me)
Conclusion: started with $58k cash in 2012 and have around 2.5 M portfolio now across the country!
(Sounds good.. but not as easy as it reads)
Here it goes.
Bit about me:
I am 30 and arrived in Australia with little English and $2000 in pocket to study in one of highly regarded university to study.. 3-4 years later I got degree and started working in SME and Corporate world like everyone else. Everything I earned, I saved some and spent most on travelling and seeing different part of this amazing country.
late 2011.
Decided to invest in real estate market.. Bought a land (that nobody wanted it for last 6 months) with in sydney metro area. Paid $56K deposit and $1000 for conveyancing cost.
Deal:
$280k land (no stamp duty as it was vacant land and NSW had no stamp duty Under $300k for land)
$600K Build cost (duplex build cost inc sell, hold, design)
$880K total cost
Sold for $1.2M (Completed in year 2014)
Year 2012:
Refinanced above land and bought a house on 1/4 acre block in regional NSW.
$250K purchase and has potential to put townhouses on it.. current market indicates that circa$300k townhouses are flying out of door at the moment..
To the the date, haven?t looked at what and how many we can fit on it.
I have left this site for rainy day development.
We funded this purchase from equity draw form land above.
Mid 2012
Bought 1/4 acre with full brick house in Brisbane metro. We can subdivide this in two lots and retain front and build at back.
It was a deceased estate. I picked it up at right price. Used equity to purchase this site and used our own funds to complete reno.
Year 2013
Spent time learning and developing Sydney site. It was a steep learning curve. Developing properties is not easy and not for faint hearted ppl. It requires time, effort and money (lots and lots of it). Ppl who develop can back this up. It is not easy to develop and to make matter worst, I picked up worst site ever to develop on .
In way it was good, because now I learnt all tricks in a book and went thru hell and back. It took toll but in a good way. It will pay off for any future developments.
Around AUG 2013, We bought a potential triplex site in Perth metro and I am pretty happy with it so far..
Nov 2013, we bought a site in Melbourne metro with vision of developing in to 4 townhouses, asked for longer settlement and settled on it on feb 2014.
I started to educate myself about different planning code and requirement related to development for most metro areas around major metro city in country (Except SA, Adelaide)
I was no longer in market to buy as i maxed out our borrowing capacity. However, I was still assessing and scanning properties that I can develop on. That lead me to suggesting it to friends and some SS members.. Needless to say they are happy with their purchase and they did pay me handsome Spotters fee, which really came handy as I was paying mortgage for construction loan (that was producing any income)
Year 2014:
We settled on Melbourne deve site on early 2014.
Sold Sydney development in late 2014.
Year 2015:
We are about to knock out house on Melbourne and start 4 townhouse project.
Bought a new site in Melbourne with view of potentially developing 3 story +basement apartment in bayside suburb.
This is my development journey so far and it hasn?t been an easy one.
I am glad I found somesoft and my broker (now good friend) to get me where we are today. Before I move on to what I had to scarify to get here, I must credit few ppl
Shahin from Elite property finance (broker here) for crunching numbers and getting unbelievable deals thru in lightening fast speed. It is a tedious work of getting loan thru but he makes it look really easy
i must say most of my success credit goes to shahin..
.
MTR for sort of being helpful in most deals and assessing numbers and market and provide excellent and honest market commentary
RPI for doing all legal framework and planning report for Brisbane purchase.
Oc1 for doing hard yard to get thru Melbourne deal, plans, permits and construction now.
I have met few other amzing ppl thru forum, MsAil,monalisa, nhg to name few.
Needless to say my wife and my family is been backbone of above story.
What did I scarify (Sort of)
No PPoR
No Kids (As yet)
No fancy car (I just rewarded my self with new $25k car)
Frugal lifestyle for 2-3 years (And counting)
Why chose above journey/strategy?
We are young couple and don?t need a big house and cant afford to live far off city, so never felt a need of McMansion.
Everything I bought for my personal use, I paid cash for it (Car, furniture, overseas trips around the wold) that allowed us to borrow money for IPs.
I say to ppl that all our properties are female properties, it can produce more dwellings and mitigates risk of negative market movements. I chose to manufacture growth rather than Mr Market dictating my journey and path.
It may seem that 2.5 or 3m portfolio is big or makes us look rich? it is hardly the case.. i am just average joe.. still work for someone, spent most of time travelling around country and world for work.
most days of the week I hardly have around $100 to $200 in my savings account. Our PAYG jobs helps us to pay our living expenses and ongoing property expenses and whatever we earn thru development just get reinvested in to buying, developing more properties.
This is my story and I am sticking to it.... (mental note for me)
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