A9R1rx0q84 ne45p5 fr4.tmp - Key MediaKESHAV JHA Just a few years ago, hopeful investor Keshav Jha was ﬂipping through property magazines and gathering whatever tips and advice he

22 FEBRUARY 2017 | yourinvestmentpropertymag.com.au

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INVESTOR OF THE YEAR 2016

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23FEBRUARY 2017 | yourinvestmentpropertymag.com.au

JUDGING PANEL

When Your Investment Property set out to search for Australia’s No. 1 property investor for 2016, we knew we’d uncover some interesting stories of real estate success. But this year’s winning investors have got to be some of the most inspiring people we’ve profi led in the history of the competition

OUR ANNUAL awards program, now in its ninth year, has attracted one of the most diverse groups of investors we’ve profiled to date.

From a couple who only began investing half a dozen years ago and who already have a $5m-plus portfolio, to the investor nearing retirement age, to the young guns who are making huge strides forward despite being in their 20s, these investors from all walks of life are making a big impact in the property world.

Our ninth annual Property Investor of the Year Awards aimed to find Australia’s leading property investor and to recognise and celebrate the achievements of property investors around the country.

This competition is never just about the dollar-value performance of a portfolio, however; we also seek to celebrate other unique and meaningful factors that contribute to your success as investors.

How have you demonstrated entrepreneurial f lair? What evidence is there of discipline, dedication and passion helping you to achieve your goals? Have you acted with integrity and ethics – and what other factors have helped you get to where you are today?

These are just some of the questions our judges asked when reviewing the entries this year.

Our esteemed panel of judges reviewed:

• property performance• risk management• ethics and integrity in investing

and much more.

So, without further delay, we’re proud to introduce our 2016 Investor of the Year…

Elvio Bechelli

Sales and marketing manager, Defence Housing Australia

Tim Lawless

Director of research,CoreLogic

Philippe Brach

CEO,Multifocus Properties & Finance

Tyron Hyde

Director, Washington Brown Quantity Surveyors

John Kovacs

Managing director,NMD Data

Clint Greaves

CEO,Real Estate Investar

INVESTOR OF THE YEAR 2016



KESHAV JHA

Just a few years ago, hopeful investor Keshav Jha was flipping through property magazines and gathering whatever tips and advice he could from experienced

professionals. Five years on, his portfolio boasts 10 properties across five states and territories – and he has taken out the top prize in Your Investment Property’s

Investor of the Year Awards

INVESTOR OF THE YEAR / WINNER – KESHAV JHA

2016

Self-taught investor creates a $5m portfolio

in five years






KESHAV JHA doesn’t do things by halves. The day he decided to invest in property, he launched head fi rst into a season of self-education that involved numerous seminars, countless books, online tools and reports, and shoulder-rubbing with real estate experts. What he learnt has not only fast-tracked his blooming portfolio; it’s also saved him from making major mistakes that could have slowed him down.

“I learnt that a bad deal had the potential to derail a property investment game plan and could act as a major setback even for a seasoned investor,” Keshav says. “So I prepared myself to do as much research as possible before I purchased any property.”

True to his word, Keshav has gained an in-depth knowledge of the property world that would rival that of investors who’ve been living in it for a lifetime.

Keshav settled on his fi rst property in 2011: a double-storey, three-bedroom,

three-bathroom home in Glenfi eld, Sydney, that he bought with a $115,000 cash deposit. Testament to his diligent research, the property has grown by close to 80% in value since the day he bought it. Purchased for $445,000, the home is now worth almost $800,000.

But Keshav says the Glenfi eld property isn’t even his most successful one to date.

In 2014, he bought an eight-month-old four-bedroom house in Camillo, Perth, from a highly motivated seller.

“The fi nal purchase price was negotiated to $390,000, which was nearly $30,000 less than the original asking price,” says Keshav. “That resulted in an instant equity gain. It’s grown in value by about $100,000 in the last two years.”

Benefi ting from a buy-new strategy

Keshav explains that he opts to purchase new or off-the-plan dwellings, which allow him to profi t from any equity gathered from the time of purchase to completion. He looks for detached properties in growth corridors across Australia, and prefers lot sizes from 300sqm to 800sqm. The larger lot sizes give some wiggle room down the track to demolish the existing home and construct multiple dwellings.

“New buildings have higher depreciation and are less susceptible to maintenance issues,” explains Keshav. “However, it is vital that each property I purchase was built by a good and reputable builder.”

He has another trick up his sleeve when it comes to building from scratch. Keshav says he avoids progress-payment builds and instead opts for a 5% or 10% deposit up front, and the rest on completion. “This allows me to save

signifi cant money on mortgage interest payments, and also on stamp duty, depending on the state and purchase type,” he says.

Other attributes that he looks for are a purchase price of less than $600,000 – and which is not more than the median house price for the suburb.

“I look for properties within 10 to 40km of the major capital cities and in growth corridors,” says Keshav.

“Communities that attract families make tenants that generally stay for a longer duration. I avoid buying units because the land component is negligible for units and apartments, and strata fees reduce the net rental income.”

And of course Keshav strongly suggests doing your homework before

"Keshav demonstrates a strong understanding of property investing fundamentals,

including minimising investment risk through geographical diversifi cation, and investing in capital cities or close proximity to where values are supported by population growth, jobs and infrastructure."– Elvio Bechelli

"I like that Keshav has diversifi ed geographically more than any other fi nalist, with a

property portfolio that spans fi ve states. Such geographic diversity provides some protection from city-specifi c housing market trends which often run countercyclical. Also, the ethical behaviour from Keshav goes well beyond supporting multiple charities. Keshav is building wealth to invest in his family’s education and wellbeing."– Tim Lawless, CoreLogic

"Keshav’s analysis and research of the property market stood out above all the fi nalists. I also

liked that Keshav has a great mix of interstate properties to spread his risk, and this should also reduce his land tax."– Tyron Hyde, Washington

Brown

WHAT DID THEJUDGES SAY?

“I follow the investment principle of Warren Buff ett: be fearful when others are greedy, and greedy when others are fearful”




purchasing. “Conduct extensive economic and demographic research, and do the number crunching to evaluate the suburb and the property’s current and future prospects,” he advises.

Buying now for the future

Keshav has adopted a diverse and diligent strategy, which has clearly impressed our judges. And it all began in 2011, when Keshav, an information technology teacher, says he realised that the superannuation he and his wife, Ishpreet, had accrued, together with their pension, would not be enough to support them comfortably through retirement.

Since then, Keshav has focused his strategy on buying and holding for capital growth.

“We also want to be able to support and fund my two daughters’ education so that they can become able and contributing human beings when they grow up,” he says with a smile.

And while his eye is firmly on the long-term prize, Keshav is finding that he’s already able to live more generously, courtesy of his careful planning and burgeoning portfolio.

SUBURB STATE TYPEPURCHASE

YEAR

PURCHASE

PRICE

CURRENT

VALUE

ESTIMATED

EXPENSES PER

WEEK

GROSS RENT

PER WEEKCASH FLOW

GLENFIELD NSW House 2011 $445,000 $798,000 $393 $0 $0

GLENFIELD NSW House 2012 $407,000 $755,000 $552 $510 $0

MACGREGOR ACT House 2013 $404,900 $498,000 $327 $420 $93

GILLIESTON HEIGHTS

NSW House 2013 $441,000 $535,000 $366 $430 $64

CAMILLO WA House 2014 $390,000 $497,000 $276 $490 $214

CRAIGIEBURN VIC House 2014 $365,000 $455,000 $277 $380 $103

ARMADALE WA House 2014 $330,000 $418,000 $269 $360 $91

MELTON WEST VIC House 2015 $328,530 $440,000 $245 $355 $110

ARMADALE WA House 2015 $393,000 $465,000 $254 $430 $176

MUNNO PARA WEST

SA House 2015 $282,000 $352,000 $139 $330 $191

TOTAL $3,786,430 $5,213,000 $3,098 $3,705 $1,042

KESHAV'S PORTFOLIO

CAPITAL GROWTH SNAPSHOT

Property 1: Glenfield,

Sydney, NSW

3x3 house, double-storeyCapital growth: 79% in last 5 yearsPurchase price: $445,000Current value: $798,000

Property 2: Glenfield,

Sydney, NSW

3x2 house Capital growth: 85.5% in last 4.5 yearsPurchase price: $407,000Current value: $755,000

Property 3: Gillieston Heights,

Hunter Valley, NSW

3x2 house Capital growth: 21.35% in 3 yearsPurchase price: $441,000Current value: $535,000

“I’m very humbled that my property investment is helping me to increase the number of charities I support,” says Keshav, who has been a long-time supporter of charities like beyondblue, the Royal Flying Doctor and Save the Children.

“The more I invest, the more I will be able to support various charitable causes,” he adds.

Closer to home, Keshav has become a personal mentor to other aspiring investors, helping four friends to purchase properties of their own.

“I’m passionate about helping others, and I really like to teach,” says Keshav. “I feel so fortunate to be in a position where I can help other people to become savvy investors.”

Creating capital growth

To maximise the potential capital of each one of his purchases, Keshav has defined a set of characteristics that he looks for in his properties. Firstly, he targets properties that can be improved through minor renovations.

“For example, I would prefer a house with two lounges, so I could




convert one lounge into a bedroom by adding an additional door and internal wall,” he explains. “This minor change maximises the rental yield and can fetch anything from $30 to $50 extra per week in rental income.”

Sniffing out budding suburbs is one of Keshav’s great joys – and it’s the reason his portfolio is bursting at the seams with capital growth. One property in Melton, Melbourne, has shot up almost 34% in 12 months, and another Sydney property has risen $350,000 in value since he bought it just five years ago.

“Currently I’m predominantly buying in and around capital cities in Western Australia, Victoria and South Australia,” says Keshav.

A numbers man through and through, Keshav says he creates a shortlist of suitable suburbs based on his demographics research.

“I keep investigating suitable properties, and depending on where I find an investment opportunity first, I buy there.”

1. Armadale, Perth: “It ticks all the boxes as a promising suburb, based on its current economic barometer, infrastructure development and demographic forecast.”

2. Melton, Melbourne:

“When compared to Australia's average annual population growth of 1.6%, Melton’s expected growth is nearly 430% higher and is certainly something to think about in terms of future prospects."

3. Craigieburn, Melbourne:

“Craigieburn is well serviced and people can easily commute to Melbourne via rail, bus, freeway and highway for work daily."

4. City of Playford, Northern

Adelaide: “Although comparatively City of Playford has lower forecasted growth, it still ticks all the boxes as a vibrant suburb with good potential for future capital gains and high rental yield, based on its current state of economy and infrastructure development.”

KESHAV’S TOP 4 SUBURBS TO WATCH

A safety net for risk

Keshav adopts a three-pronged strategy for avoiding risk: diversity in location, well-managed mortgages, and asset protection.

“I believe buying properties in various states helps me to benefit from each state’s own property cycle,” says Keshav. “Also, if one state is doing well and property prices are up, there’s an opportunity to use the increased equity from my properties in that state as a deposit. Then I can focus on buying more properties in states with good potential that are currently experiencing a subdued economy.”

Next, Keshav uses a range of financial tactics to keep risk at a minimum. He uses a variety of lenders to maximise his borrowing power and avoid having all his funds tied up with one institution.

He also avoids cross-collateralisation of his loans. “If properties are cross-collateralised and the value of one property goes up and another goes down, the net effect on both

While he’s thankful that his portfolio is performing well, Keshav says his one regret is that he didn’t start earlier. “I wish I could turn back the clock and start investing in properties when I was in my 20s,” he laughs. “At the same time, I think that it’s still okay to invest now, as the interest rates are at record lows, so it’s a good time to be investing.”

MY ONE PROPERTY REGRET




properties’ performance has to be accounted for while drawing out the equity,” he explains.

As a result, one poor performer can stifle the available equity on all linked properties.

To reduce the impact of fluctuating interest rates, Keshav says he uses fixed-rate loans with a term of one to three years.

“I also use a split-loan facility, where half of the loan is fixed and the other half is variable. Consequently, I have interest rates ranging from as low as 3.90% to as high as 4.7% across my portfolio,” he says.

“I’ll still keep fine-tuning my own property investment strategy and philosophy over time. Your Investment Property magazine has helped me a lot by reading about other investors’ mistakes!”

A focus on equity boosts

buying power

Although he started with a decent deposit of $115,000, Keshav’s successful strategy of chasing quick capital growth means he has had plenty of equity to fund all his purchases since then.

“Using the current equity growth in my portfolio, I have been able to unlock close to $244,000, which can be used for deposits to purchase multiple properties,” he explains.

“Due to this equity growth, my portfolio value has grown approximately 60% since 2014.”

In fact, in the two years to 2016, Keshav’s portfolio increased from $3.27m to $5.21m.

But this doesn’t mean he plans to slow down now. Keshav says he and Ishpreet intend to own a property portfolio valued at up to $50m eventually, encompassing several dozen properties. And judging by his success to date, it looks like their future is likely to pan out just the way Keshav has carefully and meticulously planned.

Congratulations, Keshav, our 2016 Investor of the Year!

As the winner of the 2016 Investor of the Year Award, Keshav receives an amazing prize pack worth $10,807,

including:

KESHAV JHA’S $10,000 PRIZE HAUL

$1,000 eftpos® card from DHA Australia

$1,000 cash from Multifocus Properties & Finance

A 12-month subscription to CoreLogic’s RP Data Professional Investors Package, which offers subscribers unlimited insight into every available property, street, suburb and state in Australia. Valued at $2,340 each

A full 12-month membership of Real Estate Investar’s Portfolio Builder, allowing subscribers to manage, track and optimise their portfolios’ performance with powerful and easy-to-use tools, valued at $2,988

A platinum 12-month membership of NMD Data, the online property listing website that exclusively lists mortgagee foreclosure, deceased estate and housing authority properties. The only comprehensive national database of its kind in Australia, valued at $199

A selection of schedules, including a Residential Depreciation and Cost Plan, or Sinking Fund or Insurance Report, from Washington Brown Quantity Surveyors, valued at $2,360

A 12-month subscription to Your Investment Property, and a selection of our bestselling special reports and e-books, valued together at $889.85

A copy of the bestselling book, The Armchair Guide to Property Investing, by Ben Kingsley and Bryce Holdaway

2016




James Dong

For this young gun, success in the real estate game has been all about mastering property development. He only began investing a couple of years ago, but already

he’s generated a multimillion-dollar profi t – and he’s nowhere near fi nished yet.Presenting James Dong, our 1st Runner-up in Your Investment Property magazine’s

Investor of the Year Awards 2016

Aggressive strategy generates

property wealth

INVESTOR OF THE YEAR / 1ST RUNNER-UP – JAMES DONG






“I used to work 50 hours a week on the road as a salesperson, and I was making good money, but my life was all about work”

JAMES DONG has only been investing in property for a couple of years, but he already has huge ambitions for his personal property portfolio. In fact, his goal for the number of properties he’d eventually like to own is a whopping 50 dwellings with a combined value of circa $40m.

“So far, the way I’ve been going in this industry, I’ve been able to produce three cash flow positive properties every 18 months, with a capital investment of about $100,000. This is through buying a block of land under market and building three to five townhouses on it,” James explains.

“I’m already on to my sixth deal, which means that even if I don’t make any more acquisitions and just finish what I have going already, I will end up with 15 townhouses in less than 24 months. The total gross value of my current projects will be around $15–20m, with net wealth of about $10m. They will generate a positive cash flow of approximately $200,000/year, which will be relatively tax-free due to depreciation deductions as well.”

James is using an aggressive strategy to get ahead in the property game, and

so far he’s having great success. Clearly, he personally has a high-risk profile to be able to comfortably manage several development projects at once without getting fearful about the large financial commitments he is making.

His method of ‘buy old house, obtain a three-unit permit, build, and rent for positive cash flow’ is highly repeatable and has so far generated fantastic profits.

Blocking out the naysayers

It was a desire to overhaul his lifestyle that initially led James to become


YEAR

PURCHASE

PRICE

CURRENT

VALUE

GROSS

RENTAL

YIELD

GROSS

RENT PER

WEEK

ESTIMATED

EXPENSES

PER WEEK

CASH FLOW

BURWOOD VIC House 2016 $1,067,000 $1,367,000 2.4% $650 $686 -$36

NUNAWADING VIC House 2016 $1,270,000 $1,970,000 2% $650 $820 -$170

PATTERSON LAKES VIC House 2016 $1,310,000 $1,600,000 0% $0 $846 -$846

OAKLEIGH VIC House 2015 $860,000 $1,350,000 3% $750 $810 -$60

OAKLEIGH EAST VIC Townhouse 2015 $500,000 $860,000 4% $680 $400 $280



DANDENONG VIC Townhouses 2015 $460,000 $460,000 0% $0

CRANBOURNE EAST VICLand

subdivision2016 $31,250 $31,250 0% $0

BRIGHTON VIC House 2016 $2,200,000 $2,900,000 0% $0

TOTAL $8,698,250 $12,258,250 - $4,090 $4,362 -$272

JAMES’ PORTFOLIO

interested in investing in property.“I used to work 50 hours a week on

the road as a salesperson, and I was making good money, but my life was all about work,” he explains.

“I wanted some way of producing a leveraged income stream so that I didn’t need to work as many hours. I now work full-time in property and I work from around 10am to 3pm every day, which gives me freedom and flexibility. My life is less stressful and I literally have time for all the things I never had time for before.”

It all started with a pot of funds of around $400,000 that James used to launch his first deal. Key to his success has been a willingness to move forward with his bold property development plans, without getting caught up in well-meaning but often-misguided advice from friends and family.

“A lot of people claim to be experts, but they haven’t actually got the runs on the board to be qualified, so their advice doesn’t mean too much,” James says.

“I learned very early on that people around me were quick to give me advice and warn about the ‘dangers’ and ‘risks’




of investing. You can acknowledge their intentions and love them for wanting to help and caring – but then go and find out how it’s actually done from the right people.”

This is precisely what James did, which proved to be a difficult task, especially as he was relying on his parents to help him fund his first foray into property.

To get into his initial development deal, James refinanced his parents’ home and withdrew several hundred thousand dollars. This allowed him to buy a property in Oakleigh East, Melbourne. His plan was to build three townhouses on the site to create an ongoing income stream.

Fortunately, all went well – so well, in fact, that the deal went on to make $1.1m in equity and is now cash flow positive to the tune of around $50,000 a year, after expenses.

In that one deal he has created an annual income. He says if he’d listened to those around him who were constantly talking about the risks and pitfalls of developing, he may have been too apprehensive to take action.

“You need to be very careful who you let influence your thoughts,” James says.

“Don’t listen to the person who has never done what you’re aiming to achieve, because although that advice may be coming from a place of care and love, it can also come from a place of ignorance and a lack of knowledge.”

PROPERTY HIGHLIGHT

Location: Oakleigh East Property type: House – which was developed into 3 townhousesPurchase price: $1,500,000 (including construction costs)Purchase year: 2015Current value: $2,580,000 Current rental return: $680 per townhouse; $2,040 total

Rent out each property to enjoy

a strong cash flow, or sell one,

two, or all three properties,

depending on your strategy

JAMES’ DEVELOPMENT BLUEPRINT FOR SUCCESS

Buy under market value Aim for a 20% discount

Add value by running a planning

process to generate the ability to

construct multiple dwellings on the

parcel of land, creating a higher and

better use for the land Note: Many people opt out of the process at this point and sell the block of land with development

approval, enjoying a healthy profit for their efforts. Builders will pay a premium for land that

is ready to build and turn over.

Engage a builder

to construct units

Have each unit separately

titled and valued at the end

of the project

Facing risks head-on

James has enjoyed fantastic results to date, but there’s no denying that his highly ambitious strategy is not without its risks.

What if one of his development projects fails to generate the profit he has forecast? What if he chooses the wrong location and the market falters during development, and the value of his development falls? What if he gets slugged with sky-high land tax bills due to the heavy concentration of buying only in one state? What if he has trouble securing finance to propel his next deal forward?

These are all genuine risks and concerns with real-world outcomes that could force James to grind his investing plans to a halt.

For these reasons, he has employed a number of risk management strategies to help him come out on top.

For instance, he has begun looking into business and commercial financing so he is no longer restricted by the borrowing criteria of retail lenders.

“Bank funding becomes a challenge when using retail loans to facilitate the transactions. I’m only restricted by my borrowing capacity so long as I stay within the retail space, so the solution, which is my next step, is to move into business banking. This way, it’s the deal itself that needs to meet serviceability criteria and not my personal income,” James says.

Furthermore, he always seeks out

motivated sellers and negotiates hard to ensure he buys well under market value, to make sure there is always some “value hedge” in the deal to protect him financially.

“All the properties I’ve bought have been well under market. For example, I bought in Oakleigh East for $737,000 when market was $900,000. This figure is justified by bank-engaged valuations and is not a made-up, pie-in-the-sky number. If you buy with a market value hedge, you will always be able to sell down quickly without losses,” he says.

“In the past two years I have generated over $1m in equity just by buying right. This intrinsically provides




downside protection as well as velocity in funding if I ever needed to jump out of a property, because I would be able to get my purchase price plus stamps and other expenses back, if not a little profi t, if I had to sell at a moment’s notice.”

Buying under market value also protects James from market volatility. In his fi rst deal, he purchased a block of land for $690,000 when the market supported a sale price around $200,000 higher.

“As I gentrifi ed the land into a higher and better use, the land became more valuable. My total cost for this project was about $1.5m, but the total end value of the townhouses is around $2.6m – the market has to crash

"James started with $200,000 in equity from his parents’ property at a young

age and has certainly done a lot with the funds he had access to. From negotiating and buying properties well below current market value, to ensuring there is upside in each deal in terms of development potential and cash fl ow, James has built a portfolio with a signifi cant amount of equity and the potential to generate great cash fl ow in the future."– Clint Greaves, Real Estate

Investar

"Starting at the ripe old age of 26, James has turned $200 into $4.4m equity in the

space of two years. It’s hard to argue with that!"– Tyron Hyde, Washington

Brown

"James has shown a great deal of strategic foresight in purchasing

undervalued properties with redevelopment potential that are located in growth corridors, where housing demand is likely to remain high. His wealth trajectory appears to be very steep, with a substantial level of equity accrued across a large portfolio of properties in just a few years. While James has taken some risks, they appear to be well thought out and his timing has paid off .” " – Tim Lawless, CoreLogic


about 38% for me to just break even, let alone lose money. It goes without saying that a market crash of 38% would be extremely unlikely in the Australian property market under today’s conditions.”

Freedom and choice

While James has made strong headway and built immense wealth through property in a short space of time, he says there have been steep learning curves along the way.

He has made mistakes and admits that managing his cash fl ow and coordinating settlements within short spaces of time has been challenging.

“The lessons learnt were to space out settlements and expand at a more

“Money ultimately creates freedom and choice so that we don’t have to endure the stress of peak-hour traffi c, or offi ce politics, or being treated unfairly by an employer”




MY $60,000 MISTAKE

“On a project once, I engaged the wrong consultants who were ‘yes men’ people, who told me what I wanted to hear, rather than what would get me the result I wanted. I was very disappointed about that process and ended up wasting around six months on additional holding costs across three projects, which cost me roughly $50,000–$60,000. I eventually sat down with the main contact who I was working with, who had let me down, and had a honest conversation about how and why I was disappointed. He said that no one had actually treated him with such dignity and respect despite the circumstances, and we amicably ended our engagement with no hard feelings. Fortunately, due to the large development margins I had factored in, in the grand scheme of things the fi nancial loss wasn’t too bad, but I defi nitely learnt a lot during that process.”

controlled pace. I expanded too quickly and I’ve now gotten to the point where I need to realign my focus in potentially selling down some assets, and move toward commercial investments for stronger yields and less hassle with tenants,” he says of his future plans.

James is passionate about property, but the exact type of real estate he invests in, whether residential or commercial, is less important to him than the benefi ts that strategic property investing brings to his life.

“Money is a tool that can be used to derive freedoms and choice. Money buys me more time with my family and friends, because I don’t need to work a nine-to-fi ve job – or more like seven-to-seven for most people – and as a result I can spend more time with family, I can go on more holidays, and I can drive in a nicer and safer car,” he says.

“My wife doesn’t need to work and she can look after the children and spend more time looking after her parents. Money ultimately creates freedom and choice so that we don’t have to endure the stress of peak-hour traffi c, or offi ce politics, or being treated unfairly by an employer.

“It’s those things that actually make a material impact in our lives and bring us happiness, and that’s what drives me. If you make the reason for your pursuit solely about making more money, then you will never be happy or be satisfi ed with your results.”

As the 1st Runner-up in the 2016 Investor of the Year Awards,James wins an amazing prize pack worth $10,807, including:

JAMES DONG’S $10,000 PRIZE HAUL

$500 eftpos® card from DHA Australia

$500 cash from Multifocus Properties & Finance

A 12-month subscription to CoreLogic’s RP Data Professional Investors Package, which off ers subscribers unlimited insight into every available property, street, suburb and state in Australia. Valued at $2,340 each

A full 6-month membership of Real Estate Investar’s Portfolio Builder, allowing subscribers to manage, track and optimise their portfolio’s performance with powerful and easy-to-use tools, valued at $1,494


2 x Residential Depreciation Reports from Washington Brown Quantity Surveyors, valued at $1,320






LEANNE JARCHOW

Leanne Jarchow doesn’t just invest in property – she’s absolutely passionate about every aspect of it, from renovating and developing to negotiating the best possible

deal. Just 10 years into her investment journey, Leanne has already well and truly put her stamp on property through stunning renovations, lucrative subdivisions and a

remarkable portfolio, all of which has landed her a coveted 2nd Runner-up ranking in our 2016 Investor of the Year Awards

Baby boomer investor hits her stride

INVESTOR OF THE YEAR / 2ND RUNNER-UP – LEANNE JARCHOW







JUGGLING MULTIPLE developments and purchases simultaneously, baby boomer Leanne has been making up for lost time.

With their retirement years around the corner, Leanne is working on ensuring that she and husband Manfred – and their family – will be fi nancially secure.

“We chose property as our security,” Leanne explains. “It means we don’t have to be reliant on an employer, and we can keep the lifestyle that we have now, even when we’re not working.”

But passion trumps fi nancial gain for Leanne, who thrives on seeing a project through from start to fi nish, and watching the old become new again.

Leanne’s strategy of buying, subdividing and building has often involved bringing shabby original homes back to life. In the past 10 years she has turned over more properties than she can count, and currently holds a six-strong portfolio worth $2.15m.

Starting in the ’70s

Leanne fi rst dipped her toe into property in the 1970s, when she and Manfred purchased a block of land for $10,000.

“We sold it two years later for $12,000,” Leanne recalls.

“It was in those days when fi nance was hard to come by. You needed a 30% deposit; we were earning $60 a week. It seemed like an awful lot of money!”

Over the years the couple purchased a number of small units but essentially put property on the backburner until 2006. However, Leanne remained immersed in real estate and fi nance as a bookkeeper, and did a short stint as a real estate sales agent.

“I’ve always been involved in property in some way, shape or form,” she says.

“For our properties, I love doing all the research and liaising with town planners and councils. Data tables and spreadsheets are key. I’d rather shop for houses than shop for clothes!”

Starting the snowball

The low-key property plans ramped up when a series of life events clicked into place.

Leanne found she had more free time as her children grew older, and she started her own part-time bookkeeping business. In 2005 her father was diagnosed with cancer and later passed away. Leanne raised more than $40,000 for the Alfred Hospital by paddling the length of the Murray River and walking back to Melbourne.

“I wouldn’t have been able to do that if I was working full-time,” she says. It was at that point that she wholeheartedly embraced property as a means of achieving future security.

“We are still heavily committed to Lions Australia, and our investing once again gives us the chance to put back into the community,” she adds.

Using her fi nance management skills, Leanne prepared a buying strategy based on risk mitigation and cash fl ow.

One of her subsequent purchases was a unit in Queensland’s Palm Cove in 2006, which now produces an excellent return of 9%.

With lenders wary of fi nancing near-retirees because of the risk they pose when they stop work, Leanne says cash fl ow and yield are very important to them.

“As we are an older couple, we’ve recently refi nanced to maximise our

“This is my passion. There’s pain, and it’s hard work, but I wouldn’t changeit for anything”

"Leanne has a clear strategy of buying at the bottom of the market – and I like

that. She doesn’t get sucked into the next hotspot, and that strategy seems to have worked to date, helping her build a solid portfolio.” – Tyron Hyde, Washington

Brown

"Leanne has a great well-defi ned strategy and she sticks to it. She has a very

targeted, narrow strategy to invest – subdivide and renovate in regional areas – and she seems to excel at it. It requires guts to do this, but the upside is that there are not many people who would compete with her. She also has a good risk management strategy in place. I love the dedication and stubbornness – it is what is making Leanne successful. – Philippe Brach, Multifocus

Properties & Finance

"Leanne Jarchow has a diversifi ed investment strategy that includes

subdivisions and investing in regional markets across Australia. Research, due diligence and number crunching are her main focus and she lives by the premise ‘If it doesn’t stack up, then you don't buy it’. A very sound and logical approach!"– John Kovacs, NMD Data





YEAR

PURCHASE

PRICE

CURRENT

VALUE

GROSS

RENT PER WEEK

ESTIMATED

EXPENSES

PER WEEK

CASH FLOW

CHIRNSIDE PARK VIC House 2016 $600,000 $600,000 $420 $57 $6,640

CHIRNSIDE PARK VIC House 2016 $45,000 $310,000 $0 $20 $0

BAIRNSDALE VIC House 2012 $206,000 $220,000 $240 $40 $6,268

BAIRNSDALE VIC House 2016 $192,000 $300,000 $350 $45 $8,738

CROYDON VIC House 2012 $392,000 $550,000 $400 $60 $6,553

PALM COVE QLD Unit 2006 $162,000 $170,000 $288 $192 $5,000

TOTAL $1,597,000 $2,150,000 $1,698 $414 $33,199

LEANNE'S PORTFOLIO

available equity, because we know this may become a problem in the future,” she says.

“We’re always very clear about what we’re doing and how much we can work with.”

Dividing and conquering

Leanne’s overall strategy has involved subdivision and new builds. One of her most successful property developments was in Croydon, Victoria.

In 2012, Leanne purchased a deceased estate there for a bargain $392,000, after negotiating a further $13,000 off the price because of minor building issues.

“We knew we wanted the property because it was ugly and smelly, but it was a certain subdivision and that is our key selection criteria,” Leanne explains.

The transformation of the original home was nothing short of a miracle. While Manfred and their son took on the lion’s share of the DIY work, they employed qualified tradesmen to help.

“We don’t believe in cosmetic improvements at the cost of safety,” says Leanne. “Electrical and plumbing works should always be done to a high

standard rather than just ‘tarting up’ a property.”

With land selling quickly, Leanne decided to subdivide the lot and sold the rear land ‘as is’.

“The sale of the land was interesting, because the subdivision took a long time and the market rose while we were waiting,” says Leanne.

“We had put in a ‘sunset clause’ that allowed us to exit the contract, so then we were able to go on to sell the land for $130,000 more.”

This gave them a final sale price for the land of $307,500. The original home is now valued at $550,000, giving them plenty of equity to develop two more properties in Bairnsdale and Chirnside Park.

The couple have rejuvenated several other properties, including one in regional Victoria, which Leanne says was “pretty much unliveable, with a concrete floor in the family room, a 1970s kitchen, and a horrendous bathroom. These places are not pretty to start, but they are always pretty to finish!”

She says their success is all due to finding the right properties.

1. Look for infrastructure.

Take advantage of rental demand by buying near hospitals and educationfacilities, Leanne says. “Defence Force bases are another good option,” she adds. “That way you’re close by for staff wanting to live in the area.”

2. Look for multiple industries.

Leanne suggests looking at towns with government departments that will provide economic security. “Otherwise, if the industry in the town goes belly-up, you’re in trouble!” she says.

3. Cater to folks moving in off

the land. “Look in the older parts of town when you’re subdividing, because people coming in off the land want to be near the services,” she advises.

4. Build a home. While land alone sells easily in the metro market, Leanne says a home is necessary to attract regional buyers.

5. Spread the risk. “Have a foot in the regional and metropolitan markets,” Leanne says. Properties in towns provide high yields and low price points, while cities offer excellent capital growth – together, they make a risk-averse, balanced portfolio.

HOW TO SUCCEED IN REGIONAL MARKETS

“I’d rather shop for houses than shop for clothes!”





“We buy entry-level houses at the bottom of the market,” Leanne explains.

“Often the purchase price will be not much more than the land value, which lends us room to value-add. We find properties that are ripe for subdivision, and then we renovate and sell as quickly as possible.”

When it comes to moving a property on, Leanne believes time is definitely money. “I would rather take $5,000 less if the offer was early in the marketing campaign, and it was a short settlement,” she says. “While your money is tied up in a property that’s ready to sell, you’re missing out on the opportunity to start another project.”

As a person who loves number crunching, Leanne says finding the right place to buy is all about feasibility and asking real estate agents plenty of questions.

“I ask what price a subdivision would fetch, what would the vacant land get, is there a market for the vacant land, what’s the best type of house to build, and so on. Then I contact council to see what timeframes are involved with planning.”

LEANNE’S 5 TIPS TO MAKE A ‘RENO AND FLIP’ STRATEGY WORK

LEANNE’S 3 ESSENTIAL ‘DON’TS’ FOR INVESTORS

• Buy entry-level properties to ensure there’s always a buyer for the home, regardless of the suburb’s property cycle.

• Watch what’s happening in the local market so you know when to buy and sell.

• Have your finances organised so that you’re ready to pounce on a bargain when you find one.

• Subdivide and sell the second lot for a quick cash boost.

• DIY as much of the renovation works as you can, but always use the experts for the important stuff.

PROPERTY HIGHLIGHT

Location: Croydon, VictoriaProperty type: House – which was subdivided and half the land sold off for $307,500Purchase price: $392,000Purchase year: 2012Current value: $550,000Current rental return: $400

Leanne says that if the numbers don’t stack up, don’t buy.

“Yields, costings and growth figures are key, and when you use them all the time, it’s easy to remove the heart from the equation,” she advises. Easy profit in regional towns

While some investors shy away from regional properties, Leanne sees the benefits: there’s less market competition and good yields.

“We like to spread the risk, and we do that by buying regionally and at the lower ends of the market; we get good returns and split the risk a bit,” she says.

And with regional property prices

substantially cheaper, Leanne is able to buy two regional properties for the price of one in the city. This generates more cash flow through rental returns and means she doesn’t have to worry if one is untenanted for a period.

Subdivision is a simpler and faster process in regional areas too.

“I can get a permit to subdivide within two months, whereas in the city it can take six to nine months,” Leanne explains. Regional councils are

1. Don’t be restricted by where

you live. If you can’t afford to buy in your own area, then buy somewhere else. “Predominantly people always think about what they know and the area they know, but my advice is to look outside those areas,” she says.

2. Don’t be afraid to invest in

regional markets. Cities can be cost-prohibitive, but in regional areas “you can get fantastic returns for rental”, Leanne says. “This means you can get a foot in the door and be moving up with property, having someone else paying off your property, and down the track you can get exactly where you want to be, but taking a roundabout route to get there.”

3. Don’t be afraid to buy

something out of the ordinary. “Looking outside the ordinary has paid dividends for us – whether it was a property that was incomplete, or needed a bit of work so we were able to value-add. You pay a premium for something that has got everything done, so put the work in and do it yourself.”

“Yields, costings and growth figures are key, and when you use them all the time, it’s easy to remove the heart from the equation”



SPOTTING A MOTIVATED SELLER

Leanne shares her secrets for spotting motivated sellers and distressed listings.

• Look for places that are vacant (especially for some time).• Look also for poorly maintained interiors or gardens.• Quiz the agent about the vendor’s reason for selling. They shouldn’t tell you, but

some will spill the beans if you ask.• Relationship break-ups are a common motivator, so look for clues to this, such as

one set of clothes in the wardrobe when there are two names on the title.• Stay on top of your research to fi nd deceased estates and foreclosures.

keen to develop – Leanne has even had a town planner call at 7pm to answer her questions.

“No way would that happen in the city!” she laughs.

What Leanne has discovered is that regional buyers expect to buy a home, not just a vacant lot.

“In metro areas, you can make quick money on a subdivided lot without a house, but regional buyers just want the house ready to go,” she says.

No matter the location, Leanne looks for bottom-of-the-market properties that have potential for renovation capital and are always in high demand with entry-level buyers.

“There’s always someone wanting to get into that market, like fi rst home buyers,” she explains. “It’s easy when it’s a buoyant market, but when the market tightens there’s still those entry-level buyers wanting in.”

A fl exible future

Leanne’s plans for the future are fl uid. She intends to add more subdivisions and renovations to her portfolio, ultimately holding around 10 investments that she and Manfred can use throughout their retirement.

“Realistically, we want to have a new asset every two years, so we’re looking at around 10 years to hit our target,” Leanne says. “We may sell some; we might hold on to them and live off the income. Nothing is set in stone with us – we’re quite fl uid in our thinking.”

For Leanne, the joy of seeing a home restored to its full glory is more than enough, and she plans to keep doing it for as long as she can.

As a reward for their hard work, they indulge in little treats like a special holiday every year.

“I just went out a couple of months ago and bought myself a new car,” says Leanne says with a smile.

“Manfred said, ‘It’s not your reward, it’s your reminder’. We’re passionate about being responsible for ourselves, having that independence, and being able to enjoy life.”

As the 2nd Runner-up in the 2016 Investor of the Year Awards,Leanne wins an amazing prize pack worth $4,683, including:

LEANNE JARCHOW’S SECOND RUNNER-UP PRIZE HAUL


$500 cash from Multifocus Properties & Finance

A full 6-month membership of Real Estate Investar’s Portfolio Builder,allowing subscribers to manage, track and optimise their portfolios’performance with powerful and easy-to-use tools, valued at $1,494


2 x Residential Depreciation Reports from Washington Brown Quantity Surveyors, valued at $1,320

A 12-month subscription to Your Investment Property, and a selectionof our bestselling special reports and e-books, valued together at $889.85





ANGELA SANTALIA

Angela Santalia and her husband Lance have grand plans to travel the world and retire early – and with the results they’ve achieved with their property portfolio to date, their future certainly looks rosy. As one of our Highly Commended nominations in Your Investment Property’s Investor of the Year Awards 2016, Angela shares the couple’s secrets to real estate success

Slow and steady wins the rat race

INVESTOR OF THE YEAR / HIGHLY COMMENDED – ANGELA SANTALIA

PROPERTY INVESTING has long been part of life for Angela and Lance Santalia.

Angela, a freelance fi nancial paraplanner, and Lance, who has a background in construction and real estate, purchased their fi rst home together before they were married.

They invested time and energy in cosmetic renovations and today they still own that fi rst home as a rental property.

“The renovation and capital growth we have enjoyed from that inner-city gem of a property allowed us to secure the next property, and we were able to grow our portfolio from there,” Angela says.

It was from this early positive experience that Angela and Lance crafted their long-term property investing strategy, which they hope will eventually allow them to hang up their hats in the




workforce and travel the world.“Our aim is to eventually have around

$200,000 per annum of passive income. Our idea is to accumulate around 20 properties, then sell 10 over the long term to pay down the debt, leaving us with 10 properties with no debt. Assuming a conservative rent of $380 per week on average, we would achieve that goal.”

When work and weekends collide

Many investors fi nd their interest in property is piqued during the course of their day job, and for Angela it was no different.

“Through my work, I developed a big interest in investing in general. Lance

and I wanted a piece of the action as we love to travel and want to be able to retire early,” she says.

After their fi rst successful renovation project, “we saw for ourselves how quickly adding value could compound returns and speed up the journey”, Angela adds.

“Our investing technique is to add value to create immediate capital gains, and to select properties in areas that are starting gentrifi cation and those which

have a specifi c rental yield,” she explains. “This combination keeps our rate of

return higher than average, which helps our portfolio to have healthy cash fl ow and growth, to protect us during times of market fl uctuations and help repay the debt without relying on our personal income. The initial growth that we manufacture helps us to move on to the next property.”

They have tackled a number of different projects over the years, including at one stage investing in a single block of land with a lone inhospitable, burnt-down house on it.

The state of the decrepit old house was of no concern to them, as they demolished it and transformed the site

into a triplex of glamorous new villas. This strategy is now their preferred

method for driving property profi ts, Angela says.

“Although we have purchased established properties, renovated and built new properties, our love is in small- to medium-density developments. Triplexes are ideal for us,” she says.

“We favour ugly-duckling suburbs in the inner-city ring to middle ring, rather than the CBD, which are at the

"As well as maximising investment potential through development of land to construct villas,

Angela understands that property prices move in cycles and that in some cases you have to be prepared to hold a property until the market improves. She has undertaken detailed feasibilities with conservative assumptions to assess viability of development proposals. She also recognises that property markets in various states in Australia provide varying opportunities, based on their stage in the property cycle, and has achieved strong results with return on investment of 31% on three villa developments.” – Elvio Bechelli,

Defence Housing Australia

“Angela Santalia is very disciplined and passionate in her approach. Combine that

with a good, strong, solid investment strategy and she's right on track to build a sound, solid fi nancial future. I particularly like her technique of overestimating costs, time to develop, and underestimating the end value. Too many people fall into the trap of bad accounting practices. Research is the key – great work!” – John Kovacs, NMD Data


“We saw for ourselves how quickly adding value could compound returns and speed up the journey”


YEAR

PURCHASE

PRICE

CURRENT

VALUE

GROSS

RENTAL

YIELD

GROSS RENT

PER WEEK

ESTIMATED

EXPENSES

PER WEEK

CASH FLOW

YOKINE WA Villa 2003 $160,000 $360,000 11% $330 $275 $55

WILLIAMS LANDING

VIC House 2007 $338,000 $575,000 6% $380 $420 -$40

NOLLAMARA WA Villa 2009 $306,000 $440,000 7% $400 $350 $50

NOLLAMARA WA Villa 2009 $306,000 $440,000 6% $350 $350 $0

GERALDTON WA House 2012 $427,000 $469,000 5% $380 $500 -$120

BRAYBROOK VIC House 2015 $420,000 $550,000 2% $250 $420 -$170

TOTAL $1,953,000 $2,834,000 - $2,090 $2,315 -$225

ANGELA'S PORTFOLIO




provides an extra barrier against risk.“At times we’ve been happy that our

research may have taken too long or that finance wasn’t possible, because in a couple of instances property prices have in the meantime become too hot, or another reason appeared for us not to proceed – which saved us a couple of times from buying incorrectly. Hindsight later showed us, and we have been very grateful!”

Angela also admits that initially she wasn’t 100% clear on her property goals. For instance, she didn’t always intend to hold on to her real estate assets for the long term.

However, over their years in the property game, the couple have learnt the value – quite literally – of being in it for the long haul.

“Some properties were slow to increase in capital growth in the first few years, then shot up in the fourth or fifth year by as much as $150,000,” Angela says.

“We started with nothing, and are very proud of our portfolio. We love the creative side to buying an existing house and renovating to add value, or buying an old house, demolishing and developing. It’s rewarding to see the before versus after, whilst also knowing that we are creating a sound financial future for ourselves.”

Angela and Lance completed their first triplex development, in Nollamara, WA, with their best friends, who are also property investors. “The initial property purchase was negotiated with the agent whilst we were in the middle of a restaurant having dinner!” Angela laughs.

The project went smoothly and on completion Angela and Lance kept two of the properties and their joint venture partner kept one. Everyone walked away with fantastic profits in their back pockets:

• Cost of the block = $350,000 • Total cost including buying costs = $379,000 • Total cost to build 3 x 3-bed, 2-bath dwellings = $539,000, including

mortgage interest• Total cost of development = $918,000• End value of the development at completion = $1,200,000 • $282,000 profit = 31% ROI• Current value $1,320,000 = 44% ROI

JOINT VENTURE INVESTMENT

As a Highly Commended finalist in the 2016 Investor

of the Year Awards, Angela wins a fantastic

prize pack worth $2,215, including:

ANGELA SANTALIA’S $2,000 PRIZE HAUL


A full 4-month membership of Real Estate Investar’s Portfolio Builder, allowing subscribers to manage, track and optimise their portfolios' performance with powerful and easy-to-use tools. Valued at $996




start of gentrification. The end value of each dwelling, usually a villa, is in the $400,000–$500,000 price range, with a minimum profit of $50,000 per dwelling in our feasibility.”

Sourcing ugly-duckling suburbs

In just over a decade, Angela and Lance have amassed wealth of more than $1m through property investing, but it hasn’t always been smooth sailing. With a number of investments in Perth, for instance, they have been negatively impacted by the resources downturn.

“Rents have significantly dropped in Perth for the last couple of years, and we have since hired real estate agents to manage the properties, which comes at a cost. However, overall, we have a much smaller negative cash flow now than most [investors in Perth],” Angela says.

“The quality of the properties that we have picked have done us well over the years, and we had an overall positively geared portfolio for a long while.”

With a knack for picking ugly-duckling suburbs just at the start of gentrification, Angela says their investment choices to date have allowed them to enjoy the benefits of capital appreciation at the same time as manually adding value through renovation or development, which



HUNG (ETHAN)XUAN TRINH

His portfolio may be more than 10 years in the making, but for property investor Hung (Ethan) Xuan Trinh, once he got started in 2014 there was no slowing down. As one of our two Highly Commended nominations in Your Investment Property’s Investor of the Year Awards 2016, Hung tells us about the strategies he’s employed to create $1m in net wealth

Future-focused investor builds

$1m in net wealth

HUNG (ETHAN) Xuan Trinh has a clear and straightforward property goal: to eventually own 20 properties.

“It is a large number and whether I can achieve this or not, only time will tell!” he says.

“However, at the current rate that I’m going, if I can purchase two properties a year, within the next fi ve years I will buy another 10 properties. In order for me to achieve this goal, I will need to be careful with my purchases and buy wisely.”

Buying wisely, of course, is the secret to wealth creation success that property investors Australia-wide are continually striving for.

Hung made the decision to seek out expert help to assist him in fi nding the right property locations and then negotiating hard for the best price.

INVESTOR OF THE YEAR / HIGHLY COMMENDED – HUNG (ETHAN) XUAN TRINH




Having accumulated a few properties, Hung started to attend property seminars, including a Stuart Zadel seminar that “taught me so much that I didn’t know before about investing”. There were also a number of other people who helped him reach his goals, including his biggest supporters: his dad, Trinh Xuan Tai; his mum, Nguyen Hoa Le; and his four sisters, Hoa, Thuy, Quyen and Diem.

He now knows how to assess the investment potential of a property by comparing the price of the property to the number of bedrooms and bathrooms it has.

“For example, an average house with three bedrooms and one bathroom would have, say, an average price range, whereas a house with four or fi ve

bedrooms with two bathrooms should obviously command a high price,” Hung says.

“So what I look for is a house with four or fi ve bedrooms and two bathrooms, but that I can purchase in the average to low price range. If I fi nd a property like this, then I know it has investment potential.”

Going back to go forward

Hung’s property journey actually began back in 2002, when he made the commitment to buy his fi rst property. Earning an average income, it wasn’t going to be an easy journey, but Hung worked two jobs and sacrifi ced many personal luxuries to be able to build his fi rst property deposit.

“I bought my fi rst property in 2004, not with the intention of becoming

an investor, but with the intention of settling there as my home. Two years later, I mentored and helped my partner at the age of 21 to save and purchase her fi rst property, and she could not have been happier with her achievement,” Hung explains.

Unfortunately, the relationship didn’t work out, but Hung’s passion for property investing remained.

A few years later, with a little equity in his fi rst property, he approached a number of banks for a loan to purchase his second property.

This was right after the GFC had hit, and Hung, who had a minimal deposit and was earning an average income, had limited borrowing power in a mortgage environment in which the interest rate on loans was above 8%.

“I didn’t proceed with any purchases, and later I realised my mistake. I should have been looking at cheaper properties that were within my borrowing capacity,” he says.

At the time, he had other things on his mind. As many property investors have learnt the hard way, sometimes ‘life happens’, which can derail the plans of even the most organised and proactive investor.

“The year 2012 was not a good year for me. My job at the Defence Gymnasium fi nished, I broke up with my new partner, and my property was fl ooded!” Hung says.

“I took on casual employment doing odd jobs here and there, and along with a small amount of money I was awarded in an out-of-settlement, I was then cashed up and prepared to invest in

"I like the fact that his approach is numbers based, which makes his approach to property very

rational. It even transpires into attending promptly to repairs and maintenance to keep his investments in good order and make tenants happy. On the downside, Hung has a high salary but does not mention depreciation in his strategy. Looking at his portfolio I would have thought this would be a priority, rather than to buy renovated properties. I think that can be easily fi xed by tweaking his strategy.” – Philippe Brach,

Multifocus Properties & Finance

“Hung’s strategy emphasises the requirements to start investing, which is that

you need a good-size deposit, steady income and equity in your home. This has become more important as banks continue to tighten lending requirements for investors. In terms of managing risks, he ensures he has a suffi cient cash balance at all times to manage unexpected costs, and he reviews rents on a regular basis to ensure they are in line with the market. – Elvio Bechelli, Defence Housing

Australia

"His portfolio is positively geared with an average 6% gross rental yield, and in reviewing his

investment approach it was clear that it is all about the numbers and the future potential to add value. Another important feature that stood out was the focus on selecting properties in areas that are close to public transport, shopping centres and other areas that have shown signs of growth, which reduces the risk of a non-tenanted property or lower than expected capital growth.” – Clint Greaves, Real Estate Investar


“I didn’t proceed with any purchases, and later I realised my mistake.I should have been looking at cheaper properties that were within my borrowing capacity”




“It’s no good going to a bank and asking for a loan when you don’t have any cash in the bank to purchase a property, as the bank sees having little cash in your account as not having a commitment to save, hence little commitment to a loan repayment.”

It’s also essential to have a clear goal that will help you persevere through the challenging times, he adds.

HUNG (ETHAN) XUAN TRINH’S $2,000 PRIZE HAUL


A full 4-month membership of Real Estate Investar’s Portfolio Builder, allowing subscribers to manage, track and optimise their portfolios' performance with powerful and easy-to-use tools. Valued at $996





YEAR

PURCHASE

PRICE

CURRENT

VALUE

GROSS

RENTAL

YIELD

GROSS RENT

PER WEEK

ESTIMATED

EXPENSES

PER WEEK

CASH FLOW

WETHERILL PARK

NSW House 2004 $388,000 $850,000 7% $500 $304 $196

CARRAMAR NSW Unit 2013 $257,000 $380,000 7% $330 $281 $49

EMERTON NSW House 2014 $344,000 $470,000 6% $400 $325 $75

MT DRUITT NSW Unit 2014 $299,000 $400,000 6% $370 $281 $89

ST MARYS NSW Unit 2014 (SOLD) $276,000 $360,000 6% $320 $277 $43

FAIRFIELD NSW Apartment 2015 $365,000 $440,000 6% $440 $427 $13

LETHBRIDGE PARK

NSW House 2015 $480,000 $500,000 4% $390 $445 -$55

BROOKFIELD VIC House 2015 $300,000 $340,000 6% $330 $296 $34

MELTON VIC House 2015 $265,000 $290,000 6% $290 $267 $23

MELTON VIC House 2016 $322,000 $340,000 6% $350 $314 $36

BROOKFIELD VIC House 2016 $280,000 $300,000 5% $290 $280 $10

TOTAL $3,576,000 $4,670,000 - $4,010 $3,497 $513

HUNG'S PORTFOLIO

“I have set a goal to acquire at least two to three properties each year, and I have been able to achieve this goal in the last few years,” Hung says.

“I invest in properties so that they can provide me with a source of income to be able to have an early retirement, and also so that in the future I can leave something to my kids when I eventually have them!”

2013. In September that year, my good mate Bobby Tepsa took me with him to a job interview, and Dennis Fantov gave me a job at Barrangaroo, and I am eternally grateful to both of them for this opportunity.”

Three months later, Hung bought his second property at Carramar by leveraging the equity in his first property.

Then, over the next 12 months, he was able to purchase more properties and build the bedrock of his investment portfolio.

“I began to realise there was a pattern developing, which allowed me to make purchases one after another. I thought: why not buy as much as possible to establish my wealth, because I knew that if I bought in the right area, eventually it would go up in value,” Hung says. Investing for the future

Throughout his property journey Hung has learn many lessons, including the impact that your salary can have on your borrowing power.

“One thing that makes it easy to borrow money from the bank is having a high, steady salary, and also a decent amount of cash for a deposit,” he says.


Documents

A9R1rx0q84 ne45p5 fr4.tmp - Key MediaKESHAV JHA Just a few years ago, hopeful investor Keshav Jha was ﬂipping through property magazines and gathering whatever tips and advice he