Seven properties before turning 30

The 'little known' tax strategy some millennials use to amass large property portfolios by @Jennifer Duke

Is Mr Java on PC?

 

Good on him. Always good to see someone do something rather than nothing.
Now, let the criticism flow.

 

I heard that 6 year rule earlier this year probably from one of Terry's posts. Interesting to have confirmation of it. Being on a six figure salary definitely helps out as well.

 

They intentionally keep the numbers very vague & both this guy + his accountant give off a very strong spruiker "I will teach you to be rich" vibe.

He's 29 now, he bought the Glen Iris place at 25, for $393k in 2011 meaning he bought it about $5k below media value for the area and its now worth about $54k over median val.... Sounds like a very interesting valuation.

Woodridge has basically been flat in the time frame he's been investing, $30k growth is fairly ambitious
Eagleby has been flat, $30k growth is shenanigans
Don't know Edens landing but again another $30k is suss and too even
Beenleigh $15k growth is doable depending on when he bought it, but pretty unlikely.
Redbank Plains $25k is doable but again doesn't tell you how long he's held it for
Frankston, Nil Growth
Christies Beach, hasn't even bought it yet.

So from what I'm seeing, he got lucky and bought pre-Sydney boom on 1 property.. He's then probably borrowed against that property to buy another 6 properties that have achieved sweet **** all actual growth so far but give him an impressing number + impressive amount of debt + something to do some ambitious refinances against..

Also no mention of yield or holding cost.

Maybe I'm just picky for wanting to see real numbers, but given that I just got a refinance this week in QLD that I know is $30k over market val, consider me dubious of people waiving re-valuations as if they were actual prices / profit.

 

I would like to know some numbers so I can test the serviceability. I am suspicious of these sorts of articles. Highly geared though.

 

Not lucky. He took effort to actually buy a property at 26 at a right time in a property cycle.

Whats wrong with that? Don't we all do that?

He has 7 properties under 30. I think it is impressive,

 

I think he certainly did well by normal standard. By PC standard maybe not. But still he is making money so hey that's good. And good on him for exploring the tax benefits.
I don't think the numbers are too far off
according to realestate.com.au
woodrige median price 245k (2011) 290k (2015)
eagleby median price 250k (2011) 273k (2015)
beenleigh median price 278k (2012) 310k (2015)

just a few examples.

What this does show though is that you don't even need to be that good in property investing to make money. You just need to be smart. and willing to take action.

 

But isn't that what property investing is?
- he selected some good suburbs and bought there under market value
- he bought a view good yielding properties (Woodridge) which had flat growth for prolonged period of time
- he bought Sydney

So he had asset selection, suburb research, bought under market value and bought in the right states at the right time in the cycle.

Don't know what more you want from a 25 year old property investor?....

 

I went to school with Anthony back in Sydney. Have seen him in a couple of articles. Good on him. He has worked hard in the last few years and is reaping the benefits.

 

even if it's luck, i congratulate him for taking action and not whinge by the road side.

 

Good on him. He got in the game and has done well

The vals are all nice rounded numbers but don't seem like they are fabricated. He's obviously needed lots of re-val's to keep going so he would have a nice piece of paper to go with them.

 

He got lucky and bought before a giant boom. Nothing in that article suggests to me that he applied any sort of skill, he bought a house and it boomed in price. Every other property he has bought since has had flat growth with suss revaluations.

Total count doesn't impress me whatsoever. If he wanted to play the numbers spruiker game he should be doing a Nathan Birch and buying regional meth shacks.

I'm younger now than he was when he started & I'm holding 40% of his portfolio in 2 properties with a deposit ready to go to make it 60% in 3 properties. My take away from this conversation is that I should use the $$ from my recent refinancing to leverage to the hilt on a bunch more properties, then start spruiking about how great an investor I am because I hit X number of properties before 30. Sure I'll probably end up a few k a month in the red, but who cares as long as I build up a profile and can fleece some suckers, right?

 

- Market value is defined when you sell, not when you ask the bank for a revaluation.
- There is a reason why the yield is so "good' in Woodridge. There is little to suggest its not going to keep flat lining thanks to dirt cheap land all around it with far less negative stigma (guessing you're not actually from QLD if you're promoting Woodrige of all places. I can get the same damn yield in East Brisbane and not have to deal with the nightmare that is Woodridge tenants.)
- He bought where he lived.

What a brilliant investor.. Lets see how long before he's offering courses on property investing with his accountant mate.

 

Whether its 7 or 2 properties it doesn't matter.
The LVR might be high and the servicability tight the one thing no one can say is that he is not having a go.

More than you could say for the average 29 year old.

 

Totally Agree. He was expecting the price of the sydney property to go down 80%. But, just got lucky and BOOM!

What did he spruik to you? The article just said that people can use the '6 year ppor rule'

Well, that's impressive too. It does not make his achievement any less impressive.

Re Read the article. Its not what you 'took' away.

 

Re-read my comment, I said from this conversation, not from this article. Clearly people (like you) are wowed by total number of properties, rather than by the actual financials of the portfolio.

 

I can only extrapolate from the article - not impossible if he can qualify for the loans, and he did say he earn 6 figures now.
All properties is obtained within 4 years so by regular standard they might not have grown that much. I'm quite sure I perform worse than him

 

@Plutus not sure what he is spruiking? He may have a different risk profile/threshold to others but nothing is right for everyone. Will he be a lucky investor if his QLD props go up 30% in the next 2 years. He may have been lucky (may not) with his first one but from where he has bought he seems to believe in the potential of the area. I guess time will be the test.

 

Chill mate. Try and appreciate people. Don't be so negative. I am wowed will many smaller things in life. My 6 yo daughter drew a picture that a toddler can draw too, I guess. It wowed me too

 

May i suggest some music to accompany your reading