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

Congrats...an awesome effort..some to get to $10m in assets is a feat inself irregardless of whether they have 80% LVR or not.....the sheer fact that they have passed the risk to the bankers is a feat in itself

Believe ...me coming from a bloke who gets told all the time you can't do it today...this story is proof of "Just Do It" .....and proof it can be done.....

 

I wonder what their strategies on managing all those properties.

 

Seems they listened to some very good advice early on and then took action. Wish I had listened and learned like this while I was young.

 

$400k isnt lower socio in some cities, its middle class

Not very difficult - PM(s) looks after it.

 

Awesome!!! Love the positive story, we need more of this so common people realise the benefit of property investment.

You can't win all people, there always doubters and haters. On the other side, there are people who have bigger than 10mil but stay on the side line for what ever reason.

At the end of the day this is your own race..

 

Hello everyone, I appreciate the support and questions from our doubters

To clear up what the article missed:

-We own 25 properties split between four states and are a mix of residential and commercial properties.

- we have 38 rentals within the 25 properties (some unit blocks & duplexes on one title)

Current LVR = 61%

- We have a passive income of over $270,000 (after all costs: $660,000 rent - $390,000 in holding costs per year (including maintenance)).

- the key strength of our portfolio is the properties high yields in areas with very tight vacancy rates. Most areas we have bought in have also preformed very well in capital growth results.

I hope you find this information interesting.

Kind regards,
Scott O'Neill

 

i think people (seasoned investors) on here in particular are happy to celebrate peoples success, but we are all too used to articles that exagerrate success or forget to include key information and have an agenda

thats why they pick apart any articles that simply dont add up

 

just saw this post,

are you able to write down, purchase price, current price, rent, and location,

or is that too much to ask?

I am very curious

 

Quite inspirational! Great work!!

I did notice in the article when he says they only but properties with rental yield higher than 6%.

To me it's a real struggle to find houses with such a high yield. As an example, I'm looking to buy in Brisbane and the areas I keep an eye on are around 4.5% at best (within 10km roughly). I'm also looking in Perth and yields are even lower.

How to achieve such high yield and still not buy in the middle of nowhere?

 

Use Scott as BA to find you a house

If you want know where Scott started, he was first featured in API July 2014, then again this year (edition?)

A $2.275m portfolio and a $165k rent per year in 2014.

2.5 years later (in 2016) a $10m portfolio and $660k rent per year.... a mind blowing result. Congrats on the outstanding achievement.

 

Hi Scott, congratulations on your success.

Read the article but always cynical reading these sort of things as they can come across as paid advertisements.

I'm most interested in your early starting days with your first couple of IPs and how you got started, what you borrowed, what size deposits etc.

I've bought 2 so far, both were sh**theaps in good suburbs that I've gutted and rebuilt, borrowing bugger all. The first one the bank value gave was about $150k more than I paid, the other is almost finished and I'm estimating around $100k increase in bank valuation. Was lucky to get both properties under market valuation, probably due to the work they needed. But reading your story is quite an inspiration.

I'm actually on zero income until I go back to work once this second property is done but I'm looking at what to do with potential 3rd purchase whether I realise a profit on one of the properties and use that to reduce the loan size on one and use the remainder as a deposit for a third.

You mention 67% LVR is this something you stick with as a rule of thumb when making purchases?

Thanks!

 

I think it is fantastic and am showing it to my fifteen year old who is required to invest 50% of her wages (9.80 p.h) in shares. My parents struggled all of their lives and never believed things would ever be better. I was determined to not be that parent. She already knows "what is good debt? " "Mortgages are good debt, personal loans, car loans, store cards = bad debt"
Good luck to you both.

 

I wouldn't.
$400k properties are not necessarily in low socioeconomic areas when you consider the median house price in Perth, Adelaide, Brisbane and numerous large regionals is only sightly higher. The diverse locations with numerous income streams from higher yielding investments is what makes this more achievable. I would rather this than getting stuck after a couple of cashflow destroying purchases which would slow the process considerably. One or two vacancies could be easily managed rather than having 2x800k places vacant.

 

That's what I was thinking!

In Perth, $400k is median in many suburbs, not just slums

 

Awesome work @Scott O'Neill. Thanks for sharing!

 

Great going
Over 5pc net yield on current values is pretty good where the bulk of the income is from residential.(it will be neat the yield breakdown between commercial and residential)
Have you found the need to have some of the properties professionally managed yet ?

 

You must be someone from Sydney who still thinks that the rest of Australia, where $400K is an average home, doesn't exist.

 

.... the other one is .... you will never see this growth/boom cycle again

 

Perhaps you can find out what addition of API he featured in and try to source a copy, as this featured all the properties.

 

In API June 2014 where they started out. Featured again API June 2016 where you have all the details...