Our Property Journey

Discussion in 'Investor Stories & Showcase' started by Hayden94, 14th Jun, 2018.

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  1. Hayden94

    Hayden94 Active Member

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    Hi everyone,

    I would just like to say a huge thank you to all the valuable contributors on this website. Through this forum, books and podcasts, my partner and I have been able to acquire a great deal of knowledge over the past couple years. We’re both 23 years old, we moved away from our friends and family to chase high income jobs. We’ve managed to create a strategy that suits us and saved 100k in 18 months and are ready to start our real estate journey.

    We’ve made a page on Instagram called our_property_journey where we have posted our key lessons, our strategy and will post our actions moving forward. Feel free to follow our progress or feel free to contact me to just have a chat. We’re just beginners starting out and look forward to giving back to people once we’ve had some experience and created success for ourselves through residential real estate investing.

    We love everything about real estate and can’t wait to achieve our dreams. Thanks again for all of you that have posted valuable information over the years; giving your time away to help others is a great characteristic and you should be proud of yourself.

    Good luck to everyone on their own journeys, take care and be positive. Your mindset is everything.

    Hayden
     
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  2. wylie

    wylie Moderator Staff Member

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    Welcome for the forum. You are doing very well for your ages. Well done.
     
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  3. Jacque

    Jacque Well-Known Member Premium Member

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    Impressive and heart warming to see people of such a young age achieve so much @Hayden94
    Well done :)
     
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  4. Eric Wu

    Eric Wu Mortgage Broker Business Member

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    welcome to PC @Hayden94, great attitude and mindset.

    looking forward to see your progress and success.

    :)
     
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  5. Sackie

    Sackie Well-Known Member Premium Member

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    With that kind of attitude and tenacity you'll go far.

    Respect to you both .
     
  6. Hayden94

    Hayden94 Active Member

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    Thanks heaps everyone, it’s nice to hear people spend a minute to say a nice word. Gives me confidence and motivation to achieve our dreams.

    Next couple months will be spent continuing savings ($1500pw) and building our team, consisting of a mortgage broker, accountant and buyers agent. Ideally they will all be investment savvy and be able to help shape and finalise our strategy. I’ve got some people in mind from listening to podcasts, I very much look forward to speaking to them, although sometimes I feel like I don’t deserve their time due to all their success!
     
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  7. Frank M

    Frank M Well-Known Member

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    Awesome work, congrats on taking this road, any idea on where your thinking of purchasing? Price etc?
     
  8. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Congrats on committing to some delayed gratification and saving so well.

    What strategy are you aiming for? Spend some time discussing your chosen path - it’s pitfalls and upsides on here for even more free advice and support.
     
  9. gerege

    gerege Well-Known Member

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    Well done guys! I’m in the same boat as you saving 1500 a week :) just love watching that account grow rapidly
    What area are you looking at buying in and what price?
     
  10. Hayden94

    Hayden94 Active Member

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    Thanks Frank, will discuss below.

    Aiming for a buy, add value, hold strategy. Combination of CG & CF.

    Awesome job, what work do you do? Certainly is great being in a situation where we can save fast.

    GOAL: To retire on 100k passive income a year in today's dollars by the time we are 40. We don't care about materialistic things or living a high expense lifestyle. We just want to replace our income so we have a choice as to how we spend our time. Whether it's spending time with friends & family, camping with our future family or doing work we love.

    PLAN: Broadly, buy 4 properties (2 growth and 2 cashflow with granny flat) in the next 3-4 years and hold them for at least 15 years, this will be our base portfolio. We then know if we do nothing else, we can retire on 100k+ per year by the age of 40. Once the base portfolio is built, we will focus on having a sick time with with friends, family and travel in the meantime. We will also do chunk deals (joint venture developments) to reduce debt. Things will change and we will adjust in the future, all we're focused on now is getting this base portfolio.

    EXAMPLE OF BASE PORTFOLIO
    1. Growth focused house for $420,000 that rents for $400+ a week (North Brisbane, within 20km of CBD)
    2. Cashflow focused house for $400,000 with granny flat potential that rents for $400+ a week (20-25km from Brisbane CBD)
    3. Build granny flat on house 2 for $130,000 that rents for $280+ a week
    4. Growth focused 60's/70's flat for $420,000 that rents for $400+ a week (Melbourne, within 10km of CBD)
    5. Cashflow focused house for $400,000 with granny flat potential that rents for $400+ a week (Newcastle, Wollongong, Central Coast)
    6. Build granny flat on house 5 for $130,000 that rents for $280+ a week
    7. Consolidate base portfolio, work on ways to actively reduce debt. Manage cashflow and let compound interest do its thing.

    Obviously there is far more details and reasons as to why we went with this strategy but I didn't want to write too much. We've began with the end in mind, we're playing the long game and keen to grow our asset base with investment grade property. I see there being a mid cycle slowdown later this year into early next year so I think it will be a great time for us to accumulate our first couple. We're happy with a portfolio with less than 7 or 8 properties as we believe more is not necessarily more so we will concentrate our investments on fewer, better deals. This simple strategy will allow our mind to visualize it with complete clarity and therefore our mind will naturally act towards achieving it.

    We believe that our thoughts become things, our mindset is in a great position to get started. We look forward to building our team and shaping our strategy to specifically suit us and our goals. Let me know what you guys think, any feedback is greatly appreciated.
     
  11. Frank M

    Frank M Well-Known Member

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    I think its a good plan, mine is somewhat similar, expect the granny flats are a thing im personally holding out for the future once im done accumulating.
    Hardest thing would be not getting capped out and saving the deposits for worst case scenario if there were no growth in the upcoming years.

    Either way yous have a great attitude and will do well, i gave you a follow on insta also haha
     
  12. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Looks like a pretty sound strategy.

    I'm not a Brisbane owner but I thought I had heard that you couldn't do granny flats in Brisbane anymore.

    If you can achieve those yields then that's a pretty sweet ideal setup.

    I've given you a follow on insta too.
     
  13. Frank M

    Frank M Well-Known Member

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    Unsure for the rest of Brisbane but logan did have limitations of min 700m2 to put a granny flat and a cost of 23k , thats if i read right but i was also told they could be changing that and decreasing the m2 limit and halfing the 23k cost
    but still unsure and havent looked into it too much
     
  14. Codie

    Codie Well-Known Member

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    By the looks of the strategy you have listened to a lot of Onproperty, House/GF's are likely to be in Morten bay council area's north of Brisbane? Cool to hear of other young locals being so driven! Given you a follow also :)
     
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  15. Hayden94

    Hayden94 Active Member

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    I'm not fully sure yet what our limitations are. You can't do it inner ring suburbs but it's allowed in Moreton Bay, Logan, Ipswich etc. I think. I know the buyers agent I plan to work with does a lot of it so will discuss with him soon and put up more details. Thanks for the follow.

    Cheers for the kind words and the follow. I'd like to leave the granny flats for later on but I think we will need them early to improve our serviceability and cash flow. Will wait and see what happens.

    We worked out that even with no growth, we will be able to save a 12% deposit plus costs for them all in the next few years if we weren't able to access any equity. Although this wouldn't be ideal as we'd like decent buffers in place before we started a family. I'm very interested to look further into the requirements for granny flats, our buyers agent sure will be invaluable.

    Thanks for the follow and the kind words. Yeah Moreton bay region is where we are looking as I feel the Logan/Ipswich areas are overpopulated with investors now, that's just my opinion.

    Ah listened to a bit of OnProperty, that's where I found Ben. Since then I've stuck to his podcasts on his website. Not really a fan of Ryan as he's a bit OTT for me and doesn't have great real estate knowledge as he's more business focused. But from Ben's videos plus the Property Couch, Michael Yardney Podcast and the Smart Property Investment Show, I've certainly learned a lot. Podcasts, books, forums, there is so so much information out there nowadays. I can't get enough of it.
     
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  16. Frank M

    Frank M Well-Known Member

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    awesome, seems like your doing your DD, goodluck with the process keep us updated
     
  17. Befuddled

    Befuddled Well-Known Member

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  18. craigc

    craigc Well-Known Member

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    Congrats and looks like a good plan.
    Similar to your thoughts on Onproperty podcast so I had a quick look for Ben’s own podcast on his website but I didn’t see it.
    As a big consumer of podcasts in the car i’d like to listen so can you please advise the podcast name and I’ll subscribe to listen up.
    Thanks and good luck with your journey.
     
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  19. Hayden94

    Hayden94 Active Member

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    Cheers, sorry I guess they aren’t actually podcasts. They’re YouTube videos that he posts under the blog section on his website. To listen to them with your phone screen off, I got the ‘TSC music’ app and searched them on there, that way you can listen to them like a podcast with your phone in your pocket or whatever. Let me if you need more help
     
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  20. alastair

    alastair Member

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    Hi Hayden,

    Great read so far! Very refreshing for someone in their early 20's to have such a clear direction and willing to put the work in to get to where they want to be!

    Im 28 myself, first invested in property around 23/24 based on minimal knowledge and made emotion based decisions. I sat on my hands for several years out of pure laziness, its only just recently i realised the wealth of information available to me and this forum has been the main driver behind wanting to empower myself further and getting myself back into the market the right way this time. My previous mistakes have been no means fatal but hindsight is a wonderful thing.

    Anyway, looking forward to following your journey on here and insta as well as learning more myself! best of luck
     
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