Public opinion of property investors. (Tony Flemings 13 Properties at 28)

Yes but but but he's so stupid buying before the crash!! Steve Keen told me so!!!

 

Regardless, working at Dominos on their illegal minimum wage of $10/hr and buying a property will catch everyone's attention.

The article has achieved what it set out to do: capture a broad reader's attention.

Whether the guy actually has equity, cash flow, positive gearing is not what the author was interested in.

I'd be interested in his net portfolio value, LVR, and cashflow. 13 sounds impressive but if they're all low value properties, then it won't necessarily be news worthy in our eyes. Still a pretty good feat. Good for him.

 

@bobbyj let me search that for you.....

 

I don't get the lvr harassment. If back in say 2011 you pulled your finger out and bought 13 properties in mt druitt at 80-90% would that have turned bad? Or would you have just settled for 2 because of the scary lvr number?

 

Nice one, thanks

LVR 52% puts it at:
$1,297,846.15 equity
Total portfolio value: $2,703,846.15

Interest only at 4.5% is $63,270 in repayments per annum
$130,000 gross rental income per year.

Leaves $66730/year for running costs/insurance/real estate managers
Not including capital depreciation.

I'd say he's in a good position to retire in 10 years on a decent passive income.
At 28 and a millionaire with over $1mil equity he's done exceptionally well.
Well done.

 

I have no issues with a high LVR. Just trying to work out his equity and what sort of room he has to keep the snow ball rolling.

I'm comfortable with a 95% LVR portfolio.
It's currently sitting on 75-80% for myself and I'm not stopping anytime soon

 

If it were that simple but there is risk without a doubt, Its very much dependent on the market conditions.

LVR to the max is a brilliant way to make money and taking advantage of booming markets. However if you are LVR to the hilts and the market turns, or purchased in the wrong market or worse you buy close to peak it works in reverse, you actually lose money and instead of being able to access equity you basically are stuck until the next cycle which could be 7-10 years servicing debt and missing out on further opportunities.

Imagine if you LVR to the hilt in Perth, Darwin or even Adelaide, little or no growth and with Perth/Darwin you would be most definitely in the RED.

BTW I am not beating up on Tony F, I have not read the full story, not that interested, though I can say my 25 year old daughter would have no inclination to invest, she is too busy having fun.... so kudos to him, young, with the right mind set.

MTR

 

Great point and is evidence of self regulation (no offence to moderators on here who do a great job) is the best kind imo.

There have been people who didnt behave professionally and with integrity in the past on SS and are no longer heard from as a result.

Also worth mentioning someone can have a great experience with a business member on here and another person can have a negative experience with the same business member so look for patterns not one off misunderstandings or even incompetence which can happen to the best of us due to many different variables.

 

It aggrevates me that the Herald Sun write things like describing the following strategy as "unconventional": 'buys homes purely based on their rents and potential to increase in value".

Um... this is about as CONVENTIONAL an investment buying strategy as one can get!!

Arg. Mainstream media and their fairweather/lacklustre take on property investment!

 

I have been qouted by a journalist in an article and it wasnt entirely accurate nor what I was actually saying.

I wasnt surprised at that but at the fact they can call you up, ask some questions which are filtered through there lense of understanding as well as personal interpretation of the words you use. Then they write an article like its fact and publish it without you even seeing or knowing about it unless you come across it by random chance.

Makes me take most articles written by journaliststs with a healthy dose of scepticism and critical thinking.

 

Agree.

No offence to anyone but I have noticed recommendations are made flippantly by some who have not even used the services of the person they are recommending. Important to always ask if they have used the services etc.



MTR

 

Well Scott Pape (aka the barefoot investor) thinks he's done alright.... I think?

"Former Domino’s pizza delivery boy who earned $10 an hour owns 14 renovated properties and is now semi-retired at the age of 28 (and he says you can do it too)” read the headline this week.

And all the renters groaned.

Okay, so paint me purple and call me Dorothy but after more than a decade of doing this, my bulldust detector starts beeping whenever a young buck appears in the press crowing about owning 14 properties and retiring before he's 30 ... especially when his version of ‘retirement’ is running a property investment advisory business. Or maybe I’m just a dinosaur?

Either way, this type of ‘property porn’ always sucks in the eyeballs -- and with good reason.

House prices are our Vietnam ... man.

The war between landlords and renters has been a bitter and bloody two-decade-long battle. Over that time home-ownership rates of people aged 25 to 45 years have been in free-fall. The result being that young people are now increasingly middle aged before they get the keys to their first home.

Well I called him up and had a chat with him this week -- and I’ve got to admit that I was impressed.

When he started out, he lived with his parents and saved up a 20 per cent deposit with a low-paid job (and they don’t come much more low paid than delivering plastic pizzas), and he bought a little unit in the boonies. In other words, he scrapped, saved, and made things happen.
And then … it seems the Capricciosa went to his head. He just kept on leveraging up. Now, owning 14 properties on a low income at a time when interest rates are at all time lows (and have to come up some time) is not something I’d do. Then again, what’s the worst that could happen? He could go bust and … end up delivering pizzas for a living.

Still, hats off to the kid -- he’s got more guts than a freshly delivered Domino’s Meat Lovers."

 

I think he's basically saying what many here are saying, it's high risk stuff that he wouldn't advise but good on him for having a crack.

 

But he would have stopped after purchase 1 by hitting a big serviceability wall.
He's needed to buy properties with high yield to supplement his income plus get the short term growth to pull equity and go again. You can see from the locations he's bought that he's bought well and with a clear plan not just throwing darts at a map.

I wonder which broker he uses?

Next thread may need to be on the potential over supply of brokers and BA's??

 

I agree, its getting ridiculous

 

That's how i took it to. I think what gets scotty excited was that he was
1 low income
2 saved
That's his mantra - preeching being tight to people that love credit

 

No wonder people need to go out and buy 13 properties! It's also a tax wtite off for charity next Tuesday is "buy a house for mortgage broker day"

 

@bob shovel could you pls share the list of locations and property types this young man has purchased? I couldn't spot it anywhere when I googled it.

Curious to see his strategy and the locations that had worked well for him consistently to achieve both high CG and high cash-flow/yield so quickly.

 

From near the top of this page:

Hi Albanga happy to answer any of your questions not including my proposed 14th purchase.
LVR- 52% Very hard to get equity out when my Sydney properties went up with APRA and it's serviceability restrictions. Although I'm quite happy having a large buffer.
Total Debt- $1,406,000
Properties location- Kingswood x 2
St Marys x 3
Lavington/Albury x 6
Elizabeth East SA x 1
Elizabeth Downs SA x 1

 

Would be interesting getting an update 2 years later with markets turning in Sydney.