Seven properties before turning 30

How would a stint of work/travel overseas effect the 6-year rule?

I have a friend planning to travel and potentially work overseas for a 1-2 year period. She has a PPOR and an investment property.

 

Depends if you find this impressive? Seems all the property magazines do as the prize is the amount of debt you have and the net worth is totally ignored .... and you can see why.

Perhaps I have it wrong?? I don't know anymore or getting too cynical

At the end of the day... good on him, I don't know too many this age that would stick their neck out, as long as he can service the debt then all power to him

MTR

 

I don't understand what is everyone's issue with what that guy has achieved. Obviously, net worth is important, but he is just 30. The properties he had bought are bound to increase in value (if you go by the PC hype experts). It takes good amount of effort to amass 7 properties (I know I know most PCers are not impressed with numbers). But, even with the APRA changes, he managed it.
If he just maintains that many properties and able to service them for a few years, the net worth will increase.

The property magazine has to sensationalize the topic. How else do you think they would manage to make profit?

Don't be too cynical.

 

Its not even a magazine, its a Domain free article... and I say the young guy has made a good start, that's the way to go. You have to be in it to win it and he has a solid tactic. While Sydney was booming, it was a great feeling that each of my properties would gain $1k roughly per week with me doing nothing. 3 years of boom, and multiply that by the number of properties. Gotta be in it to win it. Even if Brisbane does half that, and Frankston just ticks along, he'll find himself in a very good position in just a couple of short years.
Interest rates are doing nothing so it should hopefully wont cause any pain for him to hold except for maybe rates and insurance. Good luck to him.

 

Because I don't really think we should be glorifying someone who is not sharing the numbers that actually matter, nor do I think that its particularly healthy to encourage people who've spun the wheel and won, to leverage up to the hilt again and massive extend their exposure.

This guy and his accountant mate look like the next generation of Nathan Birch to me. The whole piece reads like a paid profile booster. Its veiled as a tax tip, but the guy its about hasn't even utilised it because he's never sold anything.. Hence why he's touting bank valuations as if they were market value/actual profit.

 

Quote..
“I grew up in the west with migrant parents who were not in a situation where they could give me money [to buy a home] … they invested in my education,” he said.
When you look at the numbers,and the higher end portfolio balance is around Logan and none are expensive homes then it's seldom luck, well done ...

 

Its luck.. He bought 1 property in Sydney to live in before the boom and has funded all the other purchases with that.

"That was a couple of years ago. I bought at the time for $393,000. It’s now worth around $600,000. Since then I’ve drawn equity that’s basically fuelled the five additional property purchases."

‘A dud broker almost saw me miss the Sydney boom’
Edit: Haha his accountant buddy commented on that article..

If his second spin of the wheel pays off, I'm sure people on here will be talking about his brilliant strategy.

If his second spin of the wheel goes wrong due to having bought in high risk regions, further APRA changes, rate rises without market growth, sydney market correction (because he's used speculative wealth in that property to fund his other acquisitions), or a myriad of other potential reasons, he'll be just another punter who gambled on borrowed money and lost.

I'm much more impressed that he managed to get a deposit together at a young age to buy a place in Sydney than with his ability to leverage the **** out of the unrealised gains of that asset to take a punt on a bunch of iffy suburbs around QLD. I don't think its particularly healthy to promote a strategy of borrow every cent you can to buy in cheap suburbs and hope for the best, that's a really skewed idea of success and not one I think is healthy to promote.

 

Congrats! You have graduated from downright ridiculous to plain boring

 

I work for Domain. Most of the reporters here have a speciality - none of them are tax. You'd be surprised how few investors know about this as well.

 

You don't have to, but Shukri (one of the accountants quoted) suggested 12 months was his recommended cut off to clients as any less it is often contestable as to the "intent" of the purchase.

 

He straight up says that's what he did here:

"That was a couple of years ago. I bought at the time for $393,000. It’s now worth around $600,000. Since then I’ve drawn equity that’s basically fuelled the five additional property purchases."

‘A dud broker almost saw me miss the Sydney boom’

Are you mates with this guy or what? if so can you get his actual numbers & tell him that bank valuations /= actual value.

 

There is no legal basis for this.

 

The only way to find out would be ,ring him up and say can you send me your last three years tax returns and a list of the portfolio and what made you the most return,and i'll send you mine,plus there are a lot of below 30 first generations millionaires out there,holding on to it all may be a different question..

 

Which is fair enough. All I can do is quote experts and refer to them. There's no limit (and if you'd been relocated overseas, intent would be pretty clear) but he is risk mitigating for his clients, I believe.

 

Jennifer, how did you come to write the story about this guy?

 

Its almost as if getting legal advice from tax accountants and real estate blogs is a bad idea .

Really makes me wonder if Australia needs more regulation on who can offer advice and how its offered. I thought we were going in the right direction with the increased regulation on "financial advisors" but libs reversed that, so we're back to no charge "financial advisors" selling funds and OTP property (for tax reasons, again giving advice outside of their role) that they make a commission on.

 

The way we usually find news stories. Conversations with people in the industry about a trend that is happening and then looking for a case study to illustrate.

 

So its just a coincidence domain has already done a really similar story about his mentor/accountant mate?

 

I wrote that story, I've known him for five years and found his story interesting.

 

As mentioned above - he's well connected and we stay in touch. So when I look for a case study, I often ask him if he has anyone. I've also asked people on this forum (some have declined).