How to become a multi millionaire for the benefit of Australia!

People often think that all the good deals are gone, if only I was born 10 years earlier, if only I had bought that! Etc.
The problem is that people spend more time researching their footy team and how they are going to fare each week than how they are going to make money.

This is how I, my new wife (we have independant accounts) and 3 of my 4 kids became multimillionaires usually within 15 years of starting full time work or starting my plan. 7 years since my wife started the plan. It’s no secret, it’s just common sense that you already know, but you should stick to. NB one of my kids is a muso, so money is not important at 35 it grows on Mum and Dad.

The obvious.
Live cheaply, Live at home, buy or rent the cheapest car and house you can get away with. Don’t drink much, Never gamble, club, smoke, take drugs buy expensive things or OS holiday. Start work as young as possible and save as much. The expensive things will come very soon. BTW I’m not ethically or morally against gambling, drugs, drinking etc I just feel there are better, more fun things to do with your money.

Incomd
Get a job that brings in fair income, mine was not enough so I organised Friday mornings off and went to an auction and bought office desks and bought for $10 each and sold for $60 each delivered making an extra $300 a week for 11/2 days work, allowing my wife to stay home and raise the kids, my kids from 15 took PT jobs, teaching music, English, working at fast food, in my business etc. my friends have done side hustles from selling car parts (we lived on acreages on Sydney outskirts) Planting flowers and selling out the front, mowing lawns etc etc.

The plan
Buy as soon as you can. Buy where the twist is that the future value of the land will mean that the building component has no value. This can mean an old home unit in an underdeveloped site built 50 years ago where 6-12 units were built on a site where today you can build 60-120. Or a house where the zoning is scheduled or has changed to a richer zoning ie it is an old house on 950 m2 400 metres walk from a city bound railway currently zoned for town houses. I assure you this townhouse site will be zoned 8 storey units with 10 years.
I will give you specific examples and exact addresses of properties I, my daughters and my wife have bought and why. One was mentioned on this site only a few months ago and people often make fun of my purchases saying that is exactly what it’s worth. I have not always been right. In fact every mistake I have made is when I haven’t followed my own rules and ventured out of the regions I know well. IE 20 mins from where I live. ( Hills District Sydney and Docklands Melbourne) prices approx as I don’t remember exactly. These are and were all affordable for first time investors and alone tripled to quintupled in value with 7 years. Study this on the weekend.

Home units
124 Wigram St, Harris Park purchased $300k sold $1.52m (20% Already paid and released on exchange - settlement 1/7/21) Tower block suspected of able to being built above.
5 Hassall St, Parramatta purchased $300k sold $600k fire sale due to my divorce But assume now worth $900k. Tower block suspected of able to being built above.
27 Sorrell Street, Parramatta Exchanging tomorrow. Buying one 50 year old unit in block of 7 On double block of land in close proximity to city centre and new metro. Plans for Tower blocks being built in close proximity. My offer was above asking price.

Houses
68 Enfield Avenue, North Richmond, NSW 2754
https://www.realestate.com.au/sold/property-house-nsw-north+richmond-132363538 $28k spent Refurbishing identical house now sold 6 months later in poor market. 70 Enfield Avenue, North Richmond, NSW 2754
https://www.realestate.com.au/sold/property-house-nsw-north+richmond-133856158
13 Bosworth Street, Richmond, NSW 2753
https://www.realestate.com.au/sold/property-house-nsw-richmond-132410654

With the expensive over $600,000 stuff much more money can be made, so I won’t go into the obvious. This is strictly for the beginner who wants to be a multi millionaire. If there is call for how to get to the next level. I’ll work on that next.

Why am I spreading this?

Because Australia is going to sink into the deepest recession I have known in my 60 years. I won’t suffer. But we need more people to stand up and employ people, buy more things, have their gardens mown, their houses cleaned, their cars washed and serviced, to eat out, renovate more houses, to give more to charity and to pay more tax. Not surprisingly charity has raised very little this year

So don’t leave The great opportunities to make money to the big corporations, foreign investment, super funds etc. Individuals are the ones that spend at stores, restaurants etc. We are the ones that set examples to our kids, friends and peers.

 

Great post. After every recession new shoots grow. It’s the cycle of economic life. As long as corruption is in check, courts are working and people are trying; we should be alright

 

Thanks for this post

Curious....How is the Brunswick project going, any updates?

 

Great post. For the properties you have bought, did you find strong competition though? As buying a strong CG property is probably the goal of 90% of investors. .

 

I think it helps if you have deep pockets

 

Thanks for sharing. I’m waiting for developers to knock on my door for one of my properties because the zoning is about to change. Fingers crossed

 

Great post. Thanks for sharing.

 

We settle on 1/11/20 and have had two meetings with council who approve our design to add 7 townhouses to the site with under building parking. Melbourne water says no to the parking as the cars will be driving through water in 1 in 100 year floods. We explain the road is .5 metre lower than the site so why would we be driving in or out of the site to be deeper in water on the road. But that doesn’t matter to them.

 

Oh dear....... Perhaps. VCAT ??

 

No competition at north Richmond. Only enquiry in December And was the only one at auction. Paid $445k.
For Parramatta I made an offer of $480k which is value for a 2 bed + garage in Parramatta.
By the way I never had deep pockets, I was brought up by a poor immigrant farmer and supported dad till he died earlier this year.
I think most Sydney investors could afford $445k for a 3 bed house on huge land.

 

Your avatar fooled me.......

 

Thanks Cartart - great post. I have learned through experience, easier to make money by buying well and holding for 7 or so years rather then buying and developing.

So what’s the way to get to the next level?

 

That’s me now. Not the first 40 years of my life. I’m 60 now. And I normally don’t buy these size properties. They are part of my 49yo wife’s investment fund. I am x times wealthier than her and don’t want her to feel kept so I am using my strategies from many years ago to make her rich over the next 10-15 years. After dating me for 7 years she has 7 investment properties, with only advice from me. She has less than $100k in loans.

 

Thanks for this post! Why land bank in North Richmond vs Richmond for example? And is it just a matter of buying as close to town/the village as possible, on as large a block?

 

700 sq Mt with 3 bed BV for $445k. No other “Easy to rent to nice tenants”area anywhere else in greater Sydney area under $500K . I like the Richmond area due to the quality of tenants due to the RAAF base. Wife owns 4 in the area, sister owns 2 in the area. Seems to be no vacancy if your a good landlord.
To me it’s always about value. Land goes up, generally the building depreciates. I saw a new subdivision only 1 km away where just land started from about $600k so I thought house and land in an old subdivision was worth a 25% deduction.

 

Can't argue with the logic...and the fact it has better tenants to the airbase.

 

You should look at Car tart's collection. I thought he shared his collection once on PC. The 1970s red celica in his avatar was my dream car when I was that age. Unfortunately it was expensive then and unaffordable now... for me anyway.

 

@Car tart Thanks for your post, I enjoy hearing from experienced people like yourself

just to confirm:

- For units are you banking on the actual block being re zoned, then a developer buying you out? Or just the price going up because there is scarcity by having less units in its block when comparable units are in blocks with 50+

-Do you think the Richmond house will be zoned higher than R2 within 10 years? /be able to subdivide? At present just looks like a GF build-able on it. Nice price for close to 700m2- whats it rent for?

Cheers

 

Great post Car Tart. I really enjoyed reading that.
Sorry to read about your wife troubles etc.

 

New avatar, love it