Anthony purchases his 6th investment property
31 year old Anthony purchases his 6th Property
Here’s a bit of his story……
Congratulations on purchasing your 6th Property.
Q: When did you purchase your first property? How old were you?
A: I purchased my first property in October 2010 when I was 25.
Q: Did you get your first loan with Louise?
A: No I got my first loan directly through a major Bank and let me tell you, they were no help to someone who didnt know anything about loans and showed me all these shiny interest rates and discounts that, in the end, put me in a terrible position. I have used Louise as my mortgage broker since my “bank” experience and she has helped me a lot.
Q: I think you are up to your 6th property, having just settled another recently. What are your long terms plans for your property portfolio?
A: I am currently up to my sixth property after the latest purchase. My long term plans are to get to a minimum of 10 investment properties, start to get them working for themselves, paying themselves down and hopefully be in a position that I don’t have to work any overtime so that I can spend weekends with my family. And long long term plan is to retire with time and youth to travel and be there for my family.
Q: How much research do you do before buying? What are some key criteria you use when deciding on a property? Do you use any particular information source for your research?
A: Well once I identify a location I am happy to take the risk with (of course using the 3 key things, infrastructure, jobs and transport) I start searching the properties for sale and sold in the area using the medium house price as a guide and sometimes finding that people in the area will pay more for certain things like a second bathroom. Once establishing what I think will be a good investment I look for places that fit a safer investment such as never buying a weather board house. I then call the agent and ask them about multiple properties in the area and put in a very low offer on one of the places and give them reasons why I think it’s only worth that much so they know I am ready to buy but not willing to pay too much for something. Then continue with them on the hunt for a property. Of course, all my offers are based on numbers and what is affordable and I also check with Louise when making offers.
Q: Have you purchased interstate?
A: Yes. I am Melbourne based but have purchased in Queensland and New South Wales, and most of those have been sight unseen.
Q: What is the best advice you would give a young person who wants to become a property investor?
A: I would say invest in some education from people that don’t sell property such as Louise or Terry Ryder. Choose a location they would purchase in and set yourself a goal to put in a number of offers you think would be a great deal and buy within 6 months – then you are in the market and you can focus on getting more education and understanding of what you want to achieve while your investment works for you in the background. Getting started with the first one is the hardest I think.
Buying sight unseen interstate properties need not be an issue if you have the support of good, local professional people to help with the verification process such as a property manager, local legal/conveyancer, building and pest inspectors. It also removes any emotional attachment to the selection process.