Taku Ekanayake - Millennial ‘rentvestor’ builds property portfolio of six in two years

Discussion in 'Investor Stories & Showcase' started by Simon L, 11th Feb, 2017.

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  1. Piston_Broke

    Piston_Broke Well-Known Member

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    Always good to see peeps getting out there and having a go and making things happen.

    Although the press has a way of looking through rose coloured glasses, so I did some rough calcs.

    $2mil @ 5% = $100k
    - 25% expenses = $75k

    $1.5 mil loan @ 4.5% = $67.5k

    Leaves $7.5K = $625 mth

    So the rest of the cash flow seems to be coming from depreciation and neg geared (if any) tax refund. So my guess is Mr Ekanayake is on a reasonable salary.

    Still a good place to be at 28 mate. Time is now your friend.
     
  2. jefn89

    jefn89 Well-Known Member

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    Haha mate, can you give me the winning lotto numbers, prophetic there with prediction about Taku becoming a broker! :), perhaps you knew something we didn't at that stage
     
  3. Ace in the Hole

    Ace in the Hole Well-Known Member

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    Patterns repeat, same build up has been used before many times.
     
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  4. Alex BK

    Alex BK Member

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    Hey I'm not trying to be a hater, but when I see people amass portfolios like this in such a short time I'm a little skeptical.

    How were you cashing out after Reno's? Did you get above 80%? It sounds like on your first purchase you wouldn't have had the full 20% deposit, so you would have struggled to get enough cash out to continue the portfolio .

    Is there something I'm missing?
     
  5. dabbler

    dabbler Well-Known Member

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    Yes, lots your missing, like all the many and varied lending changes mostly, and working second job ?

    You will note no one is putting up such stories now.
     
  6. neK

    neK Well-Known Member

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    If im not mistaken @Taku Ekanayake worked pretty hard.
    Had a 2nd job driving an uber?
    Gotta have money to make money, kudos to him for the hard work.
     
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  7. Alex BK

    Alex BK Member

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    Let's say he drove Uber for 20 hours a week for 2 years, he would have maybe 40k extra, or barely enough to get 1 additional property. Not taking into account the additional cash you would need on hand to renovate.

    This really limited me at the start of my portfolio, I'm curious how he got around it.
     
  8. hieund85

    hieund85 Well-Known Member

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    I think with all the recent lending changes, it becomes harder but not impossible. It depends on your purchases. I remember one of the articles saying Taku portfolio average yield is 6.8% so the rental income is quite good. And with the second job, no family, dependant, PPOR debt, bad debt he has done a great great job. A friend of mine has a similar portfolio size although he has a PPOR, family with 2 kids (of course his wife helps with the loans).
     
  9. dabbler

    dabbler Well-Known Member

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    You buy well, you stick to a small budget for renos that will provide bang for buck for re val and income.

    Did this not get spelt out in these articles ?
     
  10. Alex BK

    Alex BK Member

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    No, it didn't actually. See here's what I'm talking about.

    “After 12 months, I saved up about $35,000 and then I revalued that first property and was able to pull out another $50,000. The property was revalued at $430,000 so I used that equity to move on to the next property.

    With a 70k deposit on his first purchase of 390k, he probably would have had a loan of about 340k. For him to cash out 50k at 80% he would have needed the place to be revalued at about 485k.

    Are other people able to cash out more than 80% or do I need a new broker??
     
  11. D.T.

    D.T. Specialist Property Manager Business Member

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    The latter

    Though, rules have tightened over the past year or 2.
     
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  12. Codie

    Codie Well-Known Member

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    Agree on the latter. I’ve just done an equity release back Upto 90% but that’s not with the big 4.
     
  13. hieund85

    hieund85 Well-Known Member

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    Is your original loan at 90% LVR?
     
  14. Codie

    Codie Well-Known Member

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    Original was 95% revalued after 12 months to around 80%, took it back to 90% for next purchase. No LMI
     
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  15. hieund85

    hieund85 Well-Known Member

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    With the same lender isn't it? Not all lenders allow it (i.e., no LMI required)
     
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  16. Smuh5

    Smuh5 Active Member

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  17. dabbler

    dabbler Well-Known Member

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    I call that spelling it out pretty much, you do not need a statement of accounts.
     
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