My real estate investment journey

Hi all, I would like to share my humble journey. I started investing when I turned 30 and after 8 years, I have bought over 10 ips.

Property 1 - September 2013
A three level, double brick, townhouse in Fairfield Nsw, 2 bed, 1.5 bath, double garage for $355k. Rented for $420/week. Sold in July 2016 for $490k.

Property 2 - November 2014
Bought a vacant block of land for PPOR for $427k in Sydney. Build cost $415k with upgrades, driveway, landscaping etc. All up was around $500k, finished in early 2018.

Property 3 - May 2016
A $615k house in Ashgrove QLD, 3 bedder with an approved 1 bedder granny flat. House was rented for $395/week and granny flat was $230/week. Sold in July 2018 for $735k.

Property 4 - September 2016
A 4bedder, brick house in Queanbeyan for $530k, rented for $600/week. Sold in 2018 for $625k

Property 5 - March 2017
A house in Glenorchy Tas for $175k, rented for $250/week. Sold in 2019 for $270k.

Property 6 -
Bought a vacant block of land for $33k and built a 4 bedder, 1 bath, single garage for $223k. Rented for $420/week and sold last year for $450k.

Property 7 -
Bought a vacant land in Howrah Tas and built a house, total was $500k. Rented for $640/week, will increase to $660/week in a few months time. Waiting for a DA to build a second house, right next to the existing dwelling, build cost around $300k and can rent out for $660/week.

Property 8 - Feb 2021
Another block of land in Tranmere for $365k with waterview, building 2x double storey, 4 bedder, 2 bath, double garage, alfresco and deck. Rental appraisal for 2x is around $1,400/week.

Property 9 - Feb 2021
A old small 3 bedder house in Higgins ACT for $580k, rented $550/week.

Property 10 - Nov 2021
A very old 4-5bedder but renovated house in Ulverstone, rented for $430/week. Doing paperwork to build 2 houses on the rear of the existing dwelling.

Property 11 -
A vacant block of land in Ulverstone for 200k, could build up to 3 houses on it.

Property 12 - Feb 2022
A 1 ha rural block of land with uninterrupted waterfront/view for $650k.

My next ips would be in regional nsw, Vic and sa.

Thanks for reading.

 

This is an awesome story, thanks for sharing, and congratulations on your success so far! It looks like you have done quite well flipping many of your purchases. What is the plan moving forward? Are you going to continue to do the same or transition into something else?

 

Wow and only 30, amazing work

 

Thanks Branden, as we want to retire in 5-10 years time. I want cashflow so been thinking about commercial.

 

Thanks, started at 30, I'm 38 now.

 

Oops

Like the way you are looking at adding value

 

Very good story and thank you for sharing. It would have been good if you kept the Glenorchy Tas but I guess the sale of this property helped you venture into your other opportunities.

Are you still proceeding ahead with the build in Howrah? I thought the building cost and labour in Tassie is extremely high at the moment.

I def recommend considering commercial properties as I have slowly transitioned away from residential properties to this space and it's def a good learning experience. It's a bit of a shock to the system that all outgoings are covered by the tenants and I don't need to contribute additional funds to the property, but of course I have factored in that in the event the property is vacant it may be a couple of months to find a new tenant.

 

That sounds great, commercial is an avenue I have started to consider myself. I would be interested to see how you go moving forward with it. Best of luck!

 

Awesome work Rayryed!!! Very inspiring...

Have you considered unit blocks for yield? especially with your bias towards (assumably value adding) and flipping.

I like Sub-$1m Unit Blocks for someone in your position...

Because compared to similar priced commercial they generally have:

- Slightly higher growth profile.
- Slightly lower yield, but...
- Can offer excellent renovation upside (cosmetic renos, strata title process etc)...

And then, you still have equity production and your yields on cost base are as high or higher than the comparable commercial deal (after the renovation process).

So for someone looking at still hustling a little - they are more active Vs Commercial, but potentially more rewarding.

You also have the option of selling down 1 or more of the units after the strata title process, and holding the others with much lower LVR...So effectively taking profits and retaining exposure.

 

Hi there please advise me as I have a budget of 500 where should I buy
A studio in Sydney city or one bed room in suburbs of sydney or Melbourne high rise apartment or a house in regional Adelaide thanks in advance and I am close to retiring soon as well and live in Sydney for 40 years thanks

 

For that budget - I would also consider parts of Perth (particularly Rockingham and Cockburn LGA), Toowoomba QLD and Rockhampton QLD.

Happy to provide my logic, data or examples if you require?

 

Fantastic story, and well done. Really active, and so young.

Question, have you done any back-of-the-envelope calculations if buy and hold would have been a better strategy? I note many were sold in 2018 and 2019.

I realise that it was driven by creating income and locking in equity gains, but I just wonder if you have some perspectives on this when you look back? Particularly given the gains in 2021.

Either way, well done! Upside is upside no matter how you generate it.

Thanks,
Joh

 

Yes I'm. The turnkey price for Howrah is 310k - 4bed, 2bath, double garage with an alfresco in total of 160m2. I'm engaging the broker to have the construction loan approved now.

 

Thanks

 

Yes I have considered unit blocks. I also looked at rooming houses and ndis. But haven't really made up my mind yet.

 

There are a few reasons why I sold off the early ips, I sold the townhouse to fund my PPOR build, Ashgrove Qld because there were a few major repairs and when the tenants moved out, the pm told me to reduce the rent to attract new tenants, I didn't like the idea so I sold it.
Queanbeyan, I didn't want to sell it but my broker advised otherwise. One in Glenorchy was really old, outdated.

 

Firstly, awesome story!

Like John, above, my initial reaction also was 'why flip/sell so soon' ... I wondered as I read, by the time you paid cap gains and selling expenses, in some cases the profit wasn't huge, but I expect you have a good mortgage broker advising you, although ... for the first few years you seemed to have only 1-2 props going as you bought and sold, bought and sold... so, how did you manage so much equity, or ability to borrow...? This, I would really like to learn.

You also have time on your side, starting young (privilege I didn't have) and I will share your inspirational story with our son. Tried to encourage him to buy small in Albury but he's adamant that's not a great place. Really? I hope your story will help.

Your detailed step by step is a fantastic "lesson". Thank you!

 

I must say selling off Ashgrove and Queanbeyan wasn't a wise move at all - my broker at the time wasn't a wise one either, but I didn't know any better. I got the idea from 0 to 130 properties in 3.5 years by Steve McKnight that selling is a good option as long as theres profit and can use the money for other better investments.

In 2009, I opened a small jewellery business, was 26 years old, business was doing good so my income was ok to service the loans.

My parents helped me with stamp duty cost, 12k, to purchase the townhouse and I put in 70k which took me about 2 years to save.

I'm glad that I started investing at 30 years old, but I will guide my sons, now aged 7,5,2, to start their journey in the 20s.

 

Thank you so much for your reply Rayryed, really appreciate it.

I guess in hindsight, we would all have done something differently! but keep patting yourself on the back for a very successful journey.

I will now keep tempting my 26 year old to accept what help we can offer - and enjoy (some) success vicariously through him