Gen Y couple ‘rentvested’ their way from $15K to $10m

Discussion in 'Property Information Resources & Tools' started by Redwing, 18th Dec, 2016.

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  1. Redwing

    Redwing Well-Known Member

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    @Scott O'Neill

    Just read this story- Congratulations

    Gen Y couple ‘rentvested’ their way from $15K to $10m

    WHILE most millennials are struggling to save a deposit for one home, Gen Y couple Scott and Mina O’Neill own 25.

    Unlike most 22 and 23-year-olds, who are fresh out of university and spending almost every dollar they earn from their first fulltime job at the pub every weekend, this Sydney couple were purchasing their first property — an ugly, old home in Sutherland, in Sydney’s south, which they bought for $480,000 to ‘rentvest’ their way into the market.

    That was in 2010. Fast forward to 2016 and Scott, 29, and Mina, 28, own a 25-strong property investment portfolio worth more than $10 million.
     
    Redwing, 18th Dec, 2016
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  2. Tony Fleming

    Tony Fleming Well-Known Member

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    Tony Fleming, 18th Dec, 2016
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  3. Marg4000

    Marg4000 Well-Known Member

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    The headline is misleading although they have clearly done well.
    They now own properties valued at $10m.
    No word of how much they owe, or their nett worth.
    Marg
     
    Marg4000, 18th Dec, 2016
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  4. Gockie

    Gockie Life is good ☺️ Premium Member

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    Holy Guacamole. Great stuff :)
     
    Gockie, 18th Dec, 2016
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  5. Cactus

    Cactus Well-Known Member

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    Agree. But based on the tone of the article I would guess they have between circa 20-30% equity.

    In any case they have quit jobs and started their own business and are travelling and enjoying life. Top Work!
     
    Cactus, 18th Dec, 2016
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  6. standtall

    standtall Well-Known Member

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    25 properties worth $10 million means average property value is $400K. Owning 25 properties mostly in low socio-economic areas exposes you to multiple risks beyond your control such as interest rates increases, over supply, unemployment rates going up etc. etc. and I would rather own $5 million portfolio with average property value at $800k than a big basket of low quality investments.
     
    standtall, 18th Dec, 2016
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  7. Jingo

    Jingo Well-Known Member

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    Congratulations, an amazing achievement in such a short time. I'd be interested to know the lvr and cash the portfolio is producing to enable the couple to stop work? I wonder if there is an element of loe in this set up?
     
    Jingo, 18th Dec, 2016
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  8. fols

    fols Well-Known Member

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    Fair enough. Wanna share details of your portfilio?
     
    fols, 18th Dec, 2016
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  9. Doctor Evil

    Doctor Evil Member

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    Irrespective, how have they managed to finance the (what I assume with a LVR of 80%) $8m debt? Their borrowing capacity must be much greater than the average couple.
     
    Doctor Evil, 18th Dec, 2016
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  10. Cactus

    Cactus Well-Known Member

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    $400k is not necessarily low socioeconomic. It depends on the state and area within the state.

    I have properties that are sub $400k and the owners of neighbouring homes same value drive BMW X5s and Audi A5s etc.
     
    Last edited: 18th Dec, 2016
    Cactus, 18th Dec, 2016
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  11. MTR

    MTR Well-Known Member

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    well done
    He posted some time ago thread long gone, generating income of 200k pa

    also successful BA business, read some of Scott's post, his company is buying one property a week, entrepenuer, not your aveage investor...brilliant @Scott O'Neill
     
    MTR, 18th Dec, 2016
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  12. Cactus

    Cactus Well-Known Member

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    That would put the equity in the upper end of the range i suggested based on the yields the article suggested they where targeting. Awesome work. I look forward to generating that sort of passive income.
     
    Cactus, 18th Dec, 2016
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  13. pwnitat0r

    pwnitat0r Well-Known Member

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    Is your portfolio worth $5 million, let alone $10 million?

    I think they have achieved their goal since they now no longer work full-time. Great stuff!
     
    pwnitat0r, 18th Dec, 2016
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  14. MTR

    MTR Well-Known Member

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    Scott posted the article from API out lining properties, I can't recall where and what. It's been deleted

    ....but seriously folks hands up anyone who has an income of 200k pa.... I think perhaps the poor darling has a lot to learn from us...lol
     
    MTR, 18th Dec, 2016
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  15. Cactus

    Cactus Well-Known Member

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    People appear to struggle to celebrate others success. Would think it would be different on a like minded forum. I do however agree that portfolio size is somewhat meaningless without knowing lvr. Although in this instance saying $200k cashflow positive would have been enough info. That said not everyone wants to divulge. I wouldn't put my name and photo to an article and say anything about my net worth or income.
     
    Cactus, 18th Dec, 2016
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  16. euro73

    euro73 Well-Known Member Business Member

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    hands up ;) But yes, takes some serious doing and a steely focus , and beyond all else it requires that you swim against the tide and ignore the naysayers who cant see beyond conventional wisdom...
     
    Last edited: 18th Dec, 2016
    euro73, 18th Dec, 2016
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  17. Otie

    Otie Well-Known Member

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    I would love to know more detail, as I find it really inspiring, especially for someone like myself who has only recently purchased my first IP
     
    Otie, 18th Dec, 2016
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  18. Indifference

    Indifference Well-Known Member

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    Well, if you had a $10M portfolio you'd have that choice....

    The low socio-economic areas & people you refer to includes people like me. Semi-retired, mid 40s, home owner, investor..... yep, we're high risk bottom feeders.
     
    Indifference, 18th Dec, 2016
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  19. spludgey

    spludgey Well-Known Member

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    So what's, rentvesting?
     
    spludgey, 18th Dec, 2016
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  20. Cactus

    Cactus Well-Known Member

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    Choosing to rent instead of own and focusing your money on investing instead of owning.
     
    Cactus, 18th Dec, 2016
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