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

MTR · 19th Nov, 2016

Robert Petty said: ↑

Hey everyone, how are you?
Yes this is the Robert Petty that the article is written about and I woke up today to have a message in my inbox with the link to this forum. And so Ive decided to join.

Now let me start with the obvious. Yes my mom did give me a very large sum of money to start investing with. Im not at all saying that that is the way to go or that anyone should just expect handouts from their parents. I took the money though and I used it to start investing in property.

A lot of people are saying that its easy for me because of the gift I received, and well in comparison it was I guess. But for anyone who has any doubts on how hard I work I do on average 55 hours a week, every week, in a hot sweltering kitchen. Thats about 11 hours a day before my break is taken into account, five days a week. I have two days off during the week so that I can deal with anything regarding my properties. Its good this way because all the offices, banks, tenants will always be available to contact during the week. I also have to deal with up to three hour time differences and anyone who has ever worked in hospitality would understand that working on the weekends is almost compulsory.

Now to answer some of your questions or statements that I believe are inaccurate. (Im sorry I don't know how to tag the relevant people so I hope you're all still reading the thread)

1. I haven't gone for capital gains so much yet. Ive been focusing on cash flow in my portfolio. Ive got a lot of time on my side and my capital gains will eventuate. Its kinda like music, theres no such thing as a bad taste in music, just your own taste.

2. Yes I probably would've bought a nice car with that kinda money. I was only allowed to use the money for property though and well.. I still wasn't gonna let that kind of opportunity slide. If it weren't for that I would probably be sitting on a couch playing Xbox all day. If it weren't from the entail push from my mom I wouldn't be interested in property the way I am now. But once I had the obligation of a property on my shoulders I had to wrap my head around how it worked and once I saw how easy it really was it only made sense for me to keep at it.

3. 'If you take away the property still to settle then he has got $59,300 which is less than his starting position.'

The above line is a quote from @Big Will . So have you taken into account the solicitors fees, stamp duty and other expenses? You seem to know what you're talking about so you would know that the equation doesn't go, e.g. - guy has $50,000 deposit, buys $500,000 house. Guy should have mortgage of $450,000. Because after the expenses involved in buying a house his mortgage would probably end up somewhere around say $470,000 (very rough figure, I've just woke up, but you get the point). You seem to be doing well though, so congratulations.

4. @Joynz - I haven't decided yet but the two options I've given my self for the second half of next year are to either go back and get the accounting degree, or start making my way into working in real-estate.

5. @bob shovel , haha no I'm not broke yet, I'll let you know when I am though. Thanks for your concern.

6. @ashish1137 , people like you are the parents the article was meant to encourage to help get your kids into it, if you can then why not. And to encourage kids who aren't in a position to have parental help it was to encourage them to start saving now, the car they were just about to buy, go use that money for a deposit. And if they read it past the point where I got the $60k they would have learnt about LMI, which will help them get in now with a low deposit but even though it will make their loan amount higher it doesn't matter because by the time they save up enough to get the house they want its probably already gone up in price and maybe even more than what you would've paid on LMI. And the beauty of it, its a tax deduction.

Anyway Ive gotta go and get ready for work so I probably won't be able to reply to anyone till tonight. But ill me more than happy to read any comments before I go to sleep. I had more than 200 people hating me yesterday and I've never had a better sleep.

Till next time. Rob
Click to expand...

Hi Rob
Just read your story, love it, like your avatar too, very nice

Gotta love your mum

Ted Varrick · 19th Nov, 2016

Robert Petty said: ↑

Hey everyone, how are you?
Yes this is the Robert Petty that the article is written about and I woke up today to have a message in my inbox with the link to this forum. And so Ive decided to join.

Now let me start with the obvious. Yes my mom did give me a very large sum of money to start investing with. Im not at all saying that that is the way to go or that anyone should just expect handouts from their parents. I took the money though and I used it to start investing in property.

A lot of people are saying that its easy for me because of the gift I received, and well in comparison it was I guess. But for anyone who has any doubts on how hard I work I do on average 55 hours a week, every week, in a hot sweltering kitchen. Thats about 11 hours a day before my break is taken into account, five days a week. I have two days off during the week so that I can deal with anything regarding my properties. Its good this way because all the offices, banks, tenants will always be available to contact during the week. I also have to deal with up to three hour time differences and anyone who has ever worked in hospitality would understand that working on the weekends is almost compulsory.

Now to answer some of your questions or statements that I believe are inaccurate. (Im sorry I don't know how to tag the relevant people so I hope you're all still reading the thread)

1. I haven't gone for capital gains so much yet. Ive been focusing on cash flow in my portfolio. Ive got a lot of time on my side and my capital gains will eventuate. Its kinda like music, theres no such thing as a bad taste in music, just your own taste.

2. Yes I probably would've bought a nice car with that kinda money. I was only allowed to use the money for property though and well.. I still wasn't gonna let that kind of opportunity slide. If it weren't for that I would probably be sitting on a couch playing Xbox all day. If it weren't from the entail push from my mom I wouldn't be interested in property the way I am now. But once I had the obligation of a property on my shoulders I had to wrap my head around how it worked and once I saw how easy it really was it only made sense for me to keep at it.

3. 'If you take away the property still to settle then he has got $59,300 which is less than his starting position.'

The above line is a quote from @Big Will . So have you taken into account the solicitors fees, stamp duty and other expenses? You seem to know what you're talking about so you would know that the equation doesn't go, e.g. - guy has $50,000 deposit, buys $500,000 house. Guy should have mortgage of $450,000. Because after the expenses involved in buying a house his mortgage would probably end up somewhere around say $470,000 (very rough figure, I've just woke up, but you get the point). You seem to be doing well though, so congratulations.

4. @Joynz - I haven't decided yet but the two options I've given my self for the second half of next year are to either go back and get the accounting degree, or start making my way into working in real-estate.

5. @bob shovel , haha no I'm not broke yet, I'll let you know when I am though. Thanks for your concern.

6. @ashish1137 , people like you are the parents the article was meant to encourage to help get your kids into it, if you can then why not. And to encourage kids who aren't in a position to have parental help it was to encourage them to start saving now, the car they were just about to buy, go use that money for a deposit. And if they read it past the point where I got the $60k they would have learnt about LMI, which will help them get in now with a low deposit but even though it will make their loan amount higher it doesn't matter because by the time they save up enough to get the house they want its probably already gone up in price and maybe even more than what you would've paid on LMI. And the beauty of it, its a tax deduction.

Anyway Ive gotta go and get ready for work so I probably won't be able to reply to anyone till tonight. But ill me more than happy to read any comments before I go to sleep. I had more than 200 people hating me yesterday and I've never had a better sleep.

Till next time. Rob
Click to expand...

Well done Rob. I'm sure there's a bunch of posters looking forward to your further input in this forum over time.

And, whilst I'm at it, personally I don't think I've ever had 200 people hating me in a day (although I did post a risque talking duck joke in the jokes thread...), but such a tally can only mean that you must be doing something right.

Dont worry about them 200, unless they are subscribers to PropertyChat, in which case maybe their opinion is worth considering, and if not, they can go forth and multiply...

Kate Moloney · 20th Nov, 2016

Ted Varrick said: ↑

Well done Rob. I'm sure there's a bunch of posters looking forward to your further input in this forum over time.

And, whilst I'm at it, personally I don't think I've ever had 200 people hating me in a day (although I did post a risque talking duck joke in the jokes thread...), but such a tally can only mean that you must be doing something right.

Dont worry about them 200, unless they are subscribers to PropertyChat, in which case maybe their opinion is worth considering, and if not, they can go forth and multiply...
Click to expand...

You'll always get criticism and support no matter what you do in life

MTR · 20th Nov, 2016

Kate Moloney said: ↑

You'll always get criticism and support no matter what you do in life
Click to expand...

Hi Kate
Hope you are going well.

MTR

Perthguy · 22nd Dec, 2016

Big Will said: ↑

Don't get me wrong I think he will do better than the other 20 year olds but at 20 I had probably half of what he in total net worth (did have 30k before I was 20, being 10 years ago) but I didn't have a gift.

What are your thoughts?
Click to expand...

Met him at the Perth meet up last night. Absolute legend!

Westminster · 23rd Dec, 2016

Perthguy said: ↑

Met him at the Perth meet up last night. Absolute legend!
Click to expand...

Agreed! It was lovely to meet you @Robert Petty
Robert has a number of great skills that will put him in good stead for being a good investor.
He has a horrifically anti social houred job yet he made the time to come along to the Perth meet up. He asked, he listened and he made some great contacts who will continue to give him good advice in Perth and Adelaide.
Congrats again Rob

Robert Petty · 24th Dec, 2016

@Perthguy @Westminster thanks guys. Really appreciate the confidence from other successful investors.
I'll definitely see you all at another meet up again before I leave.
Ps. The Townsville property has settled now too. On to considering the next one haha

Hetty · 24th Dec, 2016

Robert Petty said: ↑

@Perthguy @Westminster thanks guys. Really appreciate the confidence from other successful investors.
I'll definitely see you all at another meet up again before I leave.
Ps. The Townsville property has settled now too. On to considering the next one haha
Click to expand...

I'm with the others, well done, and good job ignoring the haters.

As for buying more, aren't you hitting the lid on your borrowing capacity?

Robert Petty · 24th Dec, 2016

Hetty said: ↑

I'm with the others, well done, and good job ignoring the haters.

As for buying more, aren't you hitting the lid on your borrowing capacity?
Click to expand...

I probably am. Will have to see in the new year. Still have quite a bit to work out and having decided to commit my self to getting into working in realestate as a career and finishing my accounting degree part time I probably won't be able to.

Perthguy · 24th Dec, 2016

Robert Petty said: ↑

I probably am. Will have to see in the new year. Still have quite a bit to work out and having decided to commit my self to getting into working in realestate as a career and finishing my accounting degree part time I probably won't be able to.
Click to expand...

Plenty of time. You are not exactly "old". lol

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

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

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MTR Well-Known Member

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