What prompted you to start investing in property?
In 2011, I was shocked to discover that the average annual retirement income for Australians was only $19,468 for a single and $29,354 for a couple. I realised that super and pension would not be enough to pay for a comfortable lifestyle in retirement.
I wanted to be able to fund my daughter’s higher education in future and I became very desperate and wanted to take concrete actions so that we as a family could afford quality education for our daughter and have some sort of passive income during retirement. I am now aged 38 and have been investing in property for the last three years with great passion and commitment.
What’s been your most lucrative property deal to date?
My property in Camillo, Perth
, has worked out to be the most lucrative deal to date. The property was just eight months old and in near-new condition when purchased, and was a detached single-storey double-brick house constructed by a reputed Western Australia builder with a lifetime structural warranty.
The property was listed at $419,000, and after doing my number crunching I made a discounted offer of $390,000 which was accepted readily as the vendor was highly motivated to sell and needed money for some other development project. This resulted in an instant equity gain of approximately $30,000.
The property was settled in July 2014 and has been a big winner so far, both from a rental yield and capital growth standpoint, and delivers over $5,000 positive cash flow after expenses annually. The property is valued at around $460,000 currently, which translates to 17.9% capital growth since it was purchased last year.
What are four little-known things about you?
1. I love to paint scenic landscapes occasionally. Two years ago, I was deeply moved by my daughter’s reply to one of my questions I asked her on her seventh birthday. I asked her what she wanted for her seventh birthday. She replied that she wanted to paint together with me in our backyard for her birthday.
2. I like to play piano and mouth organ whenever
I want to unwind and relax. My daughter also likes to play piano, and we try to play together and have a good time.
3. My wife Ishpreet and I support six major Australian charities and have been supporting them over the past eight years.
4. I want to write and publish books on property investment, passive wealth creation strategies, mindset training, transforming your belief system, goal setting and other self-motivation strategies.
What has been your biggest regret as a property investor?
I wish I could turn back the clock and have started investing in properties when I was in my twenties, which would have given me more time and an early head start in my property investment career. At the same time, I think it’s still OK to invest now as the interest rates are at a record low.
What’s your dream investment now?
My dream investment is to develop a couple of duplexes in southeastern Perth’s metropolitan area. This project could deliver a rental yield of 9% or more as the development would be based on the wholesale land and house price. Upon completion, this project would increase my total portfolio’s net cash flow by 25% or more.
If money was not an issue, what property investment would you buy and where?
I would love to quadruple my current residential property purchases around Australia. I would continue to buy in and around capital cities in WA, ACT, Victoria and SA, where there is high population growth and good infrastructure. I would love to buy more properties in the northern suburbs of Adelaide
, Armadale in Perth, and Melton and Craigieburn
in Melbourne. Based on my research, these currently present great buying opportunities with good capital growth and high rental yield.
What has been the biggest reward of being a property investor?
The biggest reward is reaping passive rental income with capital growth over time. Although nothing is certain, I expect the rental income from my investment portfolio over seven to 10 years will grow by 20% to 40% because most of my properties are within 40 m of major cities with diverse economic factors, good infrastructure and healthy population growth. Investing gives me mental peace and an assurance that I will be able to fund my daughter’s education and have sufficient income in retirement to support my family and hopefully not have to rely on a pension.
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