My Story 10+ Properties by 30 yo

I haven't really been posting much, but I can really relate to this so I just had to post. Like you, I am also sharing a rental house at 30 without a PPOR so I can afford to invest in property. At times I wonder whether I am making the right decision sacrificing lifestyle for the future so it was great reading that there are others like me. Thanks for sharing, Michael and congratulations on your achievements.

Hi 7smurfs,

Congrats on two properties at age 26yo, that's impressive at a young age!

I did something similar. Moved into my first purchase to get the first home owner's grant and 12 months later moved back to my parents with my tail between my legs - I was flat broke. Eating out each night and paying a mortgage doesn't help.

Left home again at 26yo, this time round I rented frugally and managed my cashflow better. Still renting to this day with no PPOR, share with university students to keep the costs down.

After speaking to other successful investors one common theme has been the willingness to forego some current lifestyle choices for future benefits. You can't have your cake and eat it too, although I would love to! As you read the forums, you can see plenty of investors enjoying the fruits of their earlier sacrifices.

Do you want to achieve your goal in 5, 10, 20 years time? If 20 years can take it much easier than say 5 years.

Hope this helps,
Michael
 
Thanks for taking the time to answer so many questions and share your investment journey Michael.

I am the same age as you and find what you've done very inspiring, particularly the speed at which you've ramped up to 11 properties in a short space of time. I've got a young family but have a PPOR in Sydney and two IPs in Brisbane and looking to pull some equity soon for IP3.

Do you have any estimate as to when you think the properties will have increased enough to be able to provide you the opportunity to choose not to work?
 
Thanks for taking the time to answer so many questions and share your investment journey Michael.

I am the same age as you and find what you've done very inspiring, particularly the speed at which you've ramped up to 11 properties in a short space of time. I've got a young family but have a PPOR in Sydney and two IPs in Brisbane and looking to pull some equity soon for IP3.

Do you have any estimate as to when you think the properties will have increased enough to be able to provide you the opportunity to choose not to work?

Congrats on branching out from Sydney! I am sure the best growth in Brisbane are ahead of us.

I am actually leaving work fairly soon, just need to wrap up two more deals and that's it, handing in the resignation. Originally the goal was to replace my work income with rental income, not quite there - more like a touch under half way but enough for me to survive on.

Good time to quit work, let time do it's magic and focus on building the new business.
 
I am actually leaving work fairly soon, just need to wrap up two more deals and that's it, handing in the resignation. Originally the goal was to replace my work income with rental income, not quite there - more like a touch under half way but enough for me to survive on.

Good time to quit work, let time do it's magic and focus on building the new business.


A huge congrats!! We (I at least!) would be interested to understand how you find it moving from the security of a regular paycheck to the free world of working and living for yourself.

Look forward to the next piece!
 
Hi Michael

Congrats, truly inspiring stuff. You've clearly worked hard, learnt from your mistakes & are reaping the rewards. Thanks too for sharing, it really does help others.

Just wondering if you mind sharing a bit more detail about your Newcastle properties. Location / type of reno you did etc

TIA
 
Hi Michael

Congrats, truly inspiring stuff. You've clearly worked hard, learnt from your mistakes & are reaping the rewards. Thanks too for sharing, it really does help others.

Just wondering if you mind sharing a bit more detail about your Newcastle properties. Location / type of reno you did etc

TIA

The two suburbs in Newcastle are Cardiff ($225,000) and Gateshead ($195,000). I was more driven by the deal as opposed to the location. At the time I was looking all over Newcastle, and settled on these based on the purchase price. Looking back I should have picked up a few more in 2013, it was great buying back then! Hindsight is a wonderful thing :)

The renovations were a mixture of new kitchen, bathroom, paint, flooring, fixtures etc. It was all mainly cosmetic.

I detailed the two purchases more in these two posts:

http://somersoft.com/forums/showthre...40#post1172140
http://somersoft.com/forums/showthre...92#post1187092

Thanks,
Michael
 
Team, broker, property, resindential

Hey Michael, congrats on your achievement! I was reading about you just yesterday in one of the investor mags. Such inspiring stuff!!

Got a quick couple of questions for you if you don't mind......

1. Where would you recommend starting when putting a team together? Obviously a team is most important.

2. Are any of the mentioned properties cashflow positive from day dot?

3. What are your views on commercial property?

4. How long would you expect to wait for cashflow to cover your income if it hasn't already?

I have an inheritance which I would like to nurture into something inspiring also but I'm unsure on a few areas and would love to chat to a professional that has my best interest at heart. There are a lot of salespeople out there so I am trying to find genuine team members for my journey.

Thanks in advance!
Keep up the good work!
 
Hey Michael, congrats on your achievement! I was reading about you just yesterday in one of the investor mags. Such inspiring stuff!!

Got a quick couple of questions for you if you don't mind......

1. Where would you recommend starting when putting a team together? Obviously a team is most important.

2. Are any of the mentioned properties cashflow positive from day dot?

3. What are your views on commercial property?

4. How long would you expect to wait for cashflow to cover your income if it hasn't already?

I have an inheritance which I would like to nurture into something inspiring also but I'm unsure on a few areas and would love to chat to a professional that has my best interest at heart. There are a lot of salespeople out there so I am trying to find genuine team members for my journey.

Thanks in advance!
Keep up the good work!

Hi Giswal,

Sure happy to help. On the questions

1. Team - I would recommend starting with a mortgage broker, accountant and solicitor. From there you will need property managers, real estate agents, tradies, B&P inspector etc. Start with the first three and can expand from there.

I would say, select a few in each field and interview them. Ask them questions related to your own specific situation. For example, my question to the accountants were 'Should I buy under my own name or in a trust?' and to the mortgage brokers 'Should I buy at 5%, 10% or 20% deposit?'

Pick the team member you have the most connection with and provide the best answers. Can't stress how important this step is. I spent a good 3-4 months selecting my team before trying to purchase any properties.

2. Cashflow - Most of my QLD Logan purchases have been. I aim for 7% gross yield. There are definitely still out there, more work required to find them.

3. Commercial - something I want to get into at a later point. Speaking to more seasoned investors, they have cut their teeth on residential and eventually moved to commercial when they had a good equity base behind them.

4. Income - it hasn't covered my salary just yet but income wise looking at around $30-40k. This will allow me to leave work and start my own business :)

Hope the above helps and good luck on your journey!

Cheers,
Michael
 
This thread has been truly inspiring and Michael has managed to achieve so much!

I'm new to this and am looking to embark on this property journey so the tips have been incredibly helpful!

Thank you!
 
where to buy?

Hi Michael,
Which area is a good place to buy now using Super with a $300K to $350K budget?
thanks very much.


The two suburbs in Newcastle are Cardiff ($225,000) and Gateshead ($195,000). I was more driven by the deal as opposed to the location. At the time I was looking all over Newcastle, and settled on these based on the purchase price. Looking back I should have picked up a few more in 2013, it was great buying back then! Hindsight is a wonderful thing :)

The renovations were a mixture of new kitchen, bathroom, paint, flooring, fixtures etc. It was all mainly cosmetic.

I detailed the two purchases more in these two posts:

http://somersoft.com/forums/showthre...40#post1172140
http://somersoft.com/forums/showthre...92#post1187092

Thanks,
Michael
 
Well I guess I'm going in the right direction!

Great post Michael and congratulations! I started somewhat later (at 32) and now 4 years later, looking to buy my 4th (2nd in Logan area). A little slower in accumulating properties but I think I'm going in the right direction after reading your post!

Question - Do you exclusively buy highsets in Logan area or would you consider single storeys but with larger blocks of land?

Andrew
 
Amazing story Michael ! I must say it is very inspiring for your investors who are having big dreams, yet again it proves that anything is possible !

I am 29 yr old owning 1 investment property (purchased in oct 14) and ready for my second purchase. I have learnt many things from your post. For my second purchase I am seriously considering buying a unit around 250k rather than a house of 500k. I was worried about buying anything in Logan area earlier but now have started thinking about it, Thanks to you.

I have 100k deposit available to invest and am earning 160-180k pa so I can say I can have resources available for investment. I have been reading and learning but I guess have been very cautious with investment hence moving at slower pace considering we only have 1 income since my partner is not working. I have some rough strategy in mind but still very scattered and keep changing my mind alot.Earlier I was not too worried about having negative gearing and want CG as my preference though my current property is neutral. I am now considering cash flow as priority to keep growing and quickly. I need your help with below questions

  • Should I target more on CF compared to CG. I dont have any experience in renovations hence not very comfortable with building equity down that path yet.
  • My thinking till now was to focus on land component hence was not very keen on units but now if I consider CF, units will play a big role. Should I continue down this path of chasing land component for future CG or should I follow CF and chase units?
  • I am not very comfortable in med-high risk low socio eco areas like Logan considering tenant or any such issues may come due to inexperience. Do i need to break this barrier to move on and grow?
  • I never thought about having team of mortage broker, solicitor etc earlier, I am considering this now.
  • I would love to have you as my Menotor. Would you mind providing me some direction?
Thanks for all your help once again Michael!! Thanks for sharing your story.
 
Amazing story Michael ! I must say it is very inspiring for your investors who are having big dreams, yet again it proves that anything is possible !

I am 29 yr old owning 1 investment property (purchased in oct 14) and ready for my second purchase. I have learnt many things from your post. For my second purchase I am seriously considering buying a unit around 250k rather than a house of 500k. I was worried about buying anything in Logan area earlier but now have started thinking about it, Thanks to you.

I have 100k deposit available to invest and am earning 160-180k pa so I can say I can have resources available for investment. I have been reading and learning but I guess have been very cautious with investment hence moving at slower pace considering we only have 1 income since my partner is not working. I have some rough strategy in mind but still very scattered and keep changing my mind alot.Earlier I was not too worried about having negative gearing and want CG as my preference though my current property is neutral. I am now considering cash flow as priority to keep growing and quickly. I need your help with below questions

  • Should I target more on CF compared to CG. I dont have any experience in renovations hence not very comfortable with building equity down that path yet.
  • My thinking till now was to focus on land component hence was not very keen on units but now if I consider CF, units will play a big role. Should I continue down this path of chasing land component for future CG or should I follow CF and chase units?
  • I am not very comfortable in med-high risk low socio eco areas like Logan considering tenant or any such issues may come due to inexperience. Do i need to break this barrier to move on and grow?
  • I never thought about having team of mortage broker, solicitor etc earlier, I am considering this now.
  • I would love to have you as my Menotor. Would you mind providing me some direction?
Thanks for all your help once again Michael!! Thanks for sharing your story.

Hi AVS,

Glad my post helped and happy to help on your questions

CF or CG - everyone's situation is different. If you have a strong income then you can afford to make more capital growth speculations. In saying that, although your income is strong, I wouldn't recommend buying too many negatively geared properties with greater capital growth potential.

Perhaps a mix between CG and CF properties, that way you achieve a balanced portfolio. The make up of that mix can only be decided by you

Units - I don't mind units or houses, as long as they are aligned to my goals. My units in Sydney have had amazing growth, so it's not to say that units don't have CG and that houses don't have cashflow. Personally my goal is passive income so I tend to focus more on cashflow. It just so happens in Logan you can get 7% yield on houses, so that's what I have been focusing on.

Low socio economic areas - There are risks to all types of investing. It's up to the investor to navigate and minimise them. I spent alot of time in Logan interviewing property managers, almost as much time as finding the deal themselves. As your portfolio grows, having a good property manager will be key to your success.

In terms of barriers, you will come across alot as your journey continues. I had massive doubts on buying interstate but eventually overcome these. Do your due diligence, expand your comfort level and you will be surprised what you can achieve.

I like the saying, no one successful ever made it by playing safe - so true!

Team - Can't stress how important this is! Property investing is a team sport, don't try to conquer this yourself.

Sure, will drop you a PM.

Hope this helps,
Michael
 
Thanks Michael for such an inspiring story!

I am following a similar strategy to build up my sustainable portfolio by mixing CF and CG IPs, but properties with decent yields are always my favorites. I've got 2 IPs at the moment: the 1st is at Runcorn QLD, CF IP and the second one is at Bayswater North VIC, CG IP. Am looking to find the next CF IP to be added into my portfolio then Logan came into my research and coincidently I found this great story. :)

Got two questions here.

1. You mentioned some parts of Slacks Creek, Kingston, Woodridge, etc should be avoided, so is there a particular reason? flooding, crime rate or other reasons?

2. Are you paying the water usage+water rates for the tenants? I'm now paying for both for my Runcorn IP and I thought that is pretty unfair as in VIC landlords only pay for the water rates. If so, can we add something sort of a water smart device so the payment of usage will be passed to the tenants?

3. This is not a question...Any chance you could PM me the Logan property manager that you recommended?

I'm even 3 yrs younger than you and really enjoy the feeling of starting investing in property early. Found someone talking about your surname and guess you're Chinese as well?:) My D=Ding.

Cheers,
Craig
 
Thanks Michael for such an inspiring story!

I am following a similar strategy to build up my sustainable portfolio by mixing CF and CG IPs, but properties with decent yields are always my favorites. I've got 2 IPs at the moment: the 1st is at Runcorn QLD, CF IP and the second one is at Bayswater North VIC, CG IP. Am looking to find the next CF IP to be added into my portfolio then Logan came into my research and coincidently I found this great story. :)

Got two questions here.

1. You mentioned some parts of Slacks Creek, Kingston, Woodridge, etc should be avoided, so is there a particular reason? flooding, crime rate or other reasons?

2. Are you paying the water usage+water rates for the tenants? I'm now paying for both for my Runcorn IP and I thought that is pretty unfair as in VIC landlords only pay for the water rates. If so, can we add something sort of a water smart device so the payment of usage will be passed to the tenants?

3. This is not a question...Any chance you could PM me the Logan property manager that you recommended?

I'm even 3 yrs younger than you and really enjoy the feeling of starting investing in property early. Found someone talking about your surname and guess you're Chinese as well?:) My D=Ding.

Cheers,
Craig

Nice work on getting to IP3 at such a young age :) Always good to see like minded investors!

On the questions

1. Each suburb has good or bad pockets. For example, Slacks Creek can be broken down in several sections:

i) Between Queens Rd and Paradise Rd. This was originally Kingston but later renamed Slacks Creek. It's less desirable and the prices tend to reflect this. Stay away from the flooding areas around Darren Drive and Borman St. Also stay away from any street names with gemstone names like Opal, Garnett, Diamond, Pearl St etc.

http://en.wikipedia.org/wiki/Kingston,_Queensland.

Look at section on Kingston Industrial Waste Incident and Kingston Goldmine (copied below)

In September 1986 residents, in the Diamond street area of Kingston, started to notice black sludge beginning to ooze from the ground and seep into their gardens and began to complain of health problems to the Logan Council. (p4)[4] By April 1987 the council was warning people to avoid the sludge. Surrounding soils and ground-water were also found to be contaminated.

ii) Paradise Rd and Park Rd. The original Slacks Creek. Take a drive around and you will find the houses are nicer and the streets alot more presentable. A few small sections which floods so stay clear. Prices here are more expensive.

iii) North of Park Rd. You don't want to go too far north as it becomes an industrial area.

I have been planning to do a write up for the Logan suburbs but since there are quite a few suburbs it's been a work in progress.

2. Get your property manager to organise for water efficiency taps to be installed. I don't pay for water usage.

3. Drop me a PM and I will send through a few PM recommendations.

Yes, I am Chinese. Came to Australian when I was young and grew up here :)

Hope this helps,
Michael
 
Nice work on getting to IP3 at such a young age :) Always good to see like minded investors!

On the questions

1. Each suburb has good or bad pockets. For example, Slacks Creek can be broken down in several sections:

i) Between Queens Rd and Paradise Rd. This was originally Kingston but later renamed Slacks Creek. It's less desirable and the prices tend to reflect this. Stay away from the flooding areas around Darren Drive and Borman St. Also stay away from any street names with gemstone names like Opal, Garnett, Diamond, Pearl St etc.

http://en.wikipedia.org/wiki/Kingston,_Queensland.

Look at section on Kingston Industrial Waste Incident and Kingston Goldmine (copied below)

In September 1986 residents, in the Diamond street area of Kingston, started to notice black sludge beginning to ooze from the ground and seep into their gardens and began to complain of health problems to the Logan Council. (p4)[4] By April 1987 the council was warning people to avoid the sludge. Surrounding soils and ground-water were also found to be contaminated.

ii) Paradise Rd and Park Rd. The original Slacks Creek. Take a drive around and you will find the houses are nicer and the streets alot more presentable. A few small sections which floods so stay clear. Prices here are more expensive.

iii) North of Park Rd. You don't want to go too far north as it becomes an industrial area.

I have been planning to do a write up for the Logan suburbs but since there are quite a few suburbs it's been a work in progress.

2. Get your property manager to organise for water efficiency taps to be installed. I don't pay for water usage.

3. Drop me a PM and I will send through a few PM recommendations.

Yes, I am Chinese. Came to Australian when I was young and grew up here :)

Hope this helps,
Michael

Thanks for the explicit answers! Much much much appreciated!:)
 
Hi Michael, firstly very impressive story and i really enjoyed reading your comments! I don't post much, but use SS for a lot of researh which led me to you! I'm 31 & wife 26, we too are about to embark on a IP buying (spree) in the next few years too align with our goals, which seems to be close to the same as yours. In areas you have mentioned. I have a good team onboard and currently have 4IP's and 1PPR. I believe good networking is the key to success in property in the end. which leads me to a coupld of questions if you don't mind (?)

1. When you talk about choosing the right 'REvaluations', are you paying for for private valuations each time and pass them onto the banks / broker or are you arranging cheap revals from different banks and the one with the good valuation is the bank you go with. I'm trying to work out how you are doing this, what this involves, it is obviously very important in your strategy.

2. can you PM me your Property Manager for the logan etc you recommended pls.

3. When you talk about 'Mapping out' a plan with your broker, i am curious as to what this entails? Is this giving them a cost scenario of say your next 5 property purchases and expectiatons and seeing if you can keep getting loans based on re-vals?

4. maybe easier to PM or Text chat?


Thanks in advance,
I will also send you a short PM with my contact details for future networking if your intersted.
 
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