Domain Article - How a 20-year-old bought three investment properties

@Perthguy, I believe an accounting degree would be a good foundation for a lot of careers in the commerical world.

@Robert Petty, by your first post, you seem to have a personality, maybe too much to be an accountant .

 

Lots of Greeks and Italians in Melbourne/Sydney, they would feel insulted if the kids DIDN'T accept the money.

 

I did buy! Not in the west though, it's out of my reach at the moment. Next cycle will be the time to bounce

 

I'm always stunned when someone isn't a forum member! This place is an awesome resource. I pretty much come and have a read on a weekly, if not more regular, basis.

 

Weekly??? Anything less that 3 times a day is for rookies.

I seem to have mis-placed my life.

 

Wait until you retire. For me, it is either post on PC or talk to the wife ...

I am happily married. So, I think I make the right choice .

 

@Robert Petty
Good on you for signing up.
Sounds like you have a strategy in place - and are implimenting agaist the strategy. Its your strategy - it wont suit anyone else.

At 20 to have a "portfolio" larger than most people ever achieve. How ever you got there. Good on your mum for helping you, and good on you for taking the opportunity. No doubt you have learnt a lot from the experiance already. Give it 10years, and you will be well ahead of your peers.

Blacky

 

@Robert Petty
Well done. Superb effort at 20 years old.

'Give your children enough to do something with their life, but not enough to do nothing.'
You've done a good job with $60k. Will be good to see where you are in 5 and 10 years.

 

I think Geelong IS west!

I believe it is attributed to Warren Buffet.

 

we are reading the forum on daily ( actually much shorter than that) basis.

 

You are a rookie

I must say PC has become an addiction.

 

Probably have seen this kid around the place...

Not sure on his purchases though, seem abit expensive for Elizabeth East 237k... yikes

I have 3 ip around Elizabeth but cost 150k 155k and 160k all on big blocks and 2 are corner blocks. Don't think he will see any growth buying in Elizabeth at that price. Also his yields are pretty weak for Elizabeth standards, 8-10% are the creamers

 

Ok so Im back.

@jins13 Don't worry Im not at all bothered by what other people think. I would like to say though that I totally agree with you about investing in yourself! I think its the best investment you can make.

@bob shovel I went back and read your original comment, and my speed read over the thread this morning completely took it out of context haha. And no I haven't got the time to waste with a few keyboard warriors.

@Perthguy I understand the fundamentals of business and tax accounting which has treated me well with all the tax loops involved in property investing. Im leaning more towards going straight for the real-estate because if I finish off the accounting thats at least a year behind that I will be in my real-estate career. As to what interests me it would be ideal if there was an agency/franchise that would let me tag along with a few of their employees to get a more broad understanding but at this point being a rental property manager has to be my number one pick. I don't know enough of what its like to be a sales agent although I assume the money could be a lot better for the right kind of person.

@Jennifer Duke Thanks a lot Im loving this site.

@Blacky & @bobbyj Thanks for your support. The experience so far has been great! What would life be without some challenges right..

@Johnny Cashflow I should first clarify that Im not seeking your approval or gratification but I will let you know the property I bought for $237.5K is on Blackburn road (the dividing road between Elizabeth East and Hillbank, see attached link at the bottom) which literally on the edge of Hillbank that we all know is a nice suburb and it has a median house price for three bed properties of $322K. Hillbank has seen 9% growth for the 12 months to October 2016.
My yields may be weak in your eyes but my worst being 6.09% isn't bad at all, especially when a conventional property investor would consider 5.2% to be 'good'. Also both my Elizabeth East houses are three bedrooms and in both of them I only rent out two of the rooms, I choose to keep the third one in each free but if I wanted to I could rent out at any point and probably achieve the 'cream' you're talking about.
Can I also just clarify that your investment properties you're talking about are in the "Elizabeth area" and not Elizabeth East? Because Ive seen plenty of properties around the prices you've paid, I just chose not to buy them. Ive been on the other side of the main road and I wouldn't wanna buy there.

https://www.google.com.au/maps/plac...33654628eb400!8m2!3d-34.7471145!4d138.6815087

 

For what it's worth, I did an accounting degree and worked in corporate/management accounting in 3 different industries for a number of years. I then started my own businesses (not accounting related) and for the past 14 years have been running my own businesses. I always believe my accounting knowledge has put me ahead of my competitors in terms of knowledge as well as being able to do my own BAS's, tax returns etc. Looking back though, my accounting degree was actually quite useless as I really learned everything I needed to know while working as an accountant. On the job vs textbooks is quite different.

If I was you, I would start by looking at the many free accounting/business type MOOC's online first. Then see where your knowledge gaps are and maybe do some short courses. If you don't want to be an accountant and actually be in the profession then I think doing an accounting degree is a waste of time and money. In an age of online education, I believe you should be tailoring your education towards being what you actually want to be, even if it's just for the next 5 years.
Disclaimer, I did my degree in the 90's so maybe accounting degrees have evolved over recent decades and are more useful now?

 

Blackburn road Elizabeth East is definatley the nicer part of Elizabeth , good pick on that part, and that strategy could work being closer to Hillbank not sure.

Not sure why you are keeping one room free in each house. Do you stay there?

I personally wouldn't have bought in Elizabeth for that price. I have seen houses in Hillbank sell for 240-250k just recently...

My advice would be to be patient when selecting your property's. A lot of new investors jump in quickly and pay too much.

You are working hard, saving and investing so there is nothing wrong with that at all! Keep up the good work and good luck!

 

Same, can buy in Salisbury, Parafield Gardens and Brahma Lodge for that

 

@Robert Petty welcome to the forums
There is lots here which will assist you in your journey.
Also look out for the Perth meetups if they are on when you aren't working.