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Broke to $3.8m: ‘My comeback from disaster’

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Your Investment Property | 09 Oct 2012, 12:00 AM Agree 0
Recently divorced, Margaret Fort was heartbroken, cashless and in and out of hospital when she decided to turn her life around through property investing. Now she has her hands on an impressive portfolio that earns her a whopping $236k a year in rental income
  • Rex Wood | 09 Oct 2012, 02:27 PM Agree 0
    I think 'broke' is stretching things a bit. Albeit with need for cashflow, she had an unencumbered asset worth $600,000. That's hardly broke.

    That is not to detract from Margaret's great work. I too was on the way to a very healthy property portfolio, but the holding costs became too great and redundancy in the GFC, left suing for unpaid wages put paid to it all. It's a long way back and daunting cliff to climb, but climb it I will. Although it wasn't in the life plan. At least I have the capability to do so.

    Well done Margaret.
  • Yvonne | 09 Oct 2012, 05:58 PM Agree 0
    Having a $600,000 property is not a precarious financial position for most people. Not to take it away from Margaret though, she's done well.
  • John | 10 Oct 2012, 10:05 AM Agree 1
    Equity is not the same as money. If she was unemployed and had no cash, how did she support herself? Yes, I think it is fair to say she was broke.
  • Lillypod | 17 Oct 2012, 10:40 AM Agree 0
    A bank wouldn't loan to someone who was unemployed.
  • Tulia | 31 Oct 2012, 01:08 PM Agree 0
    Not hard to make a start with $600K in equity..... Come on!!
  • Francis | 31 Oct 2012, 03:00 PM Agree 1
    I think the main thing to come out of Margaret's story is that no matter what your circumstances you can make money out of property if you think positively. Her solution to her cash flow problems which I think most of us property investors face was very innovative. Well done Margaret. I hope others are inspired by your story to also start property investing. Personally, I find it tough but also great fun.
  • Keshav | 17 Apr 2013, 07:51 AM Agree 0
    Margaret's story is an inspiring example of possibilities and I know many people with 600K or more in equity who are still struggling and complaining. Action is key to manifesting your dreams.
  • Margaret Fort | 11 Nov 2013, 03:51 PM Agree 0
    Notice how magazines use creative license to sell magazines. NO mention of the huge monthly mortgage, nor maintenance costs I incur ongoing when buying old houses. Mind you if I hadn't taken the plunge I would not be half way to providing for my retirement, my goal, never having to ask the Government for support.
  • nickc | 24 Jan 2014, 01:26 PM Agree 0
    Stories involving properties in WA are not relevant to the east coast states. Just my opinion. There boom and price rises were dramatically high it cannot compare to the prices in the eastern states. I like to see stories of those who 'made it' from people in the eastern states please.
    • jdelpino | 09 Jan 2015, 04:26 PM Agree 0
      nothing stopping someone from the eastern states buying property in WA?
  • Gordon | 24 Sep 2014, 10:16 PM Agree 0
    This would be an average annual rent return for each property of $47200, or about $907 per week, a preposterous rent for a house valued at approx $400,000. A 60 year old disabled woman buying run down properties and transforming them on no income and - she would need to pay for every bit of work to bring them up to being rentable and this requires either money ( ie an income) or being able bodied enough to do the work yourself, which she sounds like she didnt do. Also, lenders today will not look at you if you can not show loan servicability, ie. unless you have an income, so this information, if it was correct at the time, is no longer relevant today - under post GFC's tighter consumer credit laws. These fairy tales make good reading and can provide some motivation for would be investors, but their often inaccurate, inflated claims should make them worthy of legal action for false and misleading conduct. Achieving in property investment is hard graft. Negative gearing helps but you need a decent income to benefit significantly from it. The compounding running costs of multiple properties and maintaining a cash flow are the biggest impediment to acquiring further properties. By all means give it a go, but be aware that it will take a long time and a lot of hard work and determination to get there. Margaret, I think you're a figment of the seminar man's imagination to feather his own nest, he ought to be jailed for charging $8000 for information which is freely or cheaply available in any property investment book at your library of book shop.Oh, and dont wait tlll your 60 to start, or you'll be pushing up daisies by the time the property market improves.
    • Lily | 24 May 2015, 05:14 AM Agree 0
      So true. We were burned in the GFC and only now looking at putting a toe in the water after 6 years clawing our way back with our equity in our own home.
  • alexiscooper5 | 04 Feb 2015, 07:34 PM Agree 0
    Nice Share.
  • ENO | 12 May 2015, 05:32 AM Agree 0
    Thank-you Gordon

    I read these "go get em baby" type of fairy tails each time someone wants to push a self vested barrow.
    I am an avarice investor in run down property. I manage each job with planning, resources and fund my projects with delayed settlements to avoid holding costs.
    In addition I still have to get in and work if someone does not deliver as the financial road must go on. I have recently invested on port kembla near Wollongong and have grossed 15pc in rental income and revived property back to life with a 20pc on capital and a growth of 10pc for this suburb. There is still plenty of opportunity here. We have 12 tenants returning us 3000 per week. As you can see less than $16,000 per tenant with a mix of commercial and residential tenants. This is the reality $12,000 per month income for an outlay of $820,000 outlay 500,000 in borrowings. This is the reality look for obscure locations like port kembla. I am not greedy and like to share my fortunate situation with others. I have enough property in Port Kembla so take a look for your self. Cheers ENO

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