I Will Achieve Financial Freedom at 40 with Multiple Investment Properties My Story |
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How I bought 2 investment Properties in 13 Months after finding the right peopleA few years went buy and I through my sister I met a mate whose parents owned a large number of Pubs and was very wealthy. I got to know their accountant and changed over to him to do my tax. I figured if their accountant made them a lot of money he might be able to show me how to make a lot too. I met the girl that would be my wife in a small town north of Adelaide in 1999. There was a house in that town selling for $26,000.In 1999 you would have felt silly walking into a bank to get a home loan for that amount. The rent would have more than covered the outgoings on that house so I went and spoke to my accountant. The accountant I was dealing with had the managing director of the accounting firm come down and speak to me. He told me never to buy property in South Australia as it is a bad investment. Well that house now is worth in excess of $100,000 and has a 50 year rental contract on it, and property values in Adelaide have more than doubled on average since then.
I fired that accountant.In 2000 we moved into a new rental house. The house across the road came up for sale about a month later. It was a little old workers cottage on a 540m² block. We negotiated and bought it for $81,500. We thought that was expensive. We knocked the old house over and built a new house. The whole deal cost us $171,000. The bank owned most of it and my parents nearly died. We moved in in 2001. About 1 year later we looked at our mortgage and saw we hadn’t even paid a cent off and thought we better do something about this. So we got one of those mortgage brokers that sets you up with a line of credit, tells you you’ll pay your mortgage off in 4 years and charges you $3,000 for the privilege. We thought great. Six months later we tried to get in contact with them to do their regular monthly visit and they wouldn’t return our calls. We never saw them or our $3,000 dollars again. It was about this time I got to thinking, there’s got to be a better way. I work hard for my money; there must be a way of getting my money to work hard for me. About mid 2002 I saw a property seminar advertised in the paper and went along. I listened eagerly for 2 hours and at the end asked a lot of questions, and bought the books and software. This was probably the best investment I made. That night I learned that to be successful you need two ingredients education and action and they must be used in combination as neither is much good on its own. That night I started my education.
Over the next 6 months I read all the books, scoured the paper and internet and used that software to work out the figures on hundreds of properties. I couldn’t get any of them to work the way they said they would in the seminar. I gave up. About 6 months later I got to thinking about property again after a real estate agent came and did a free appraisal and we found our house price had gone up $100,000. I remember at the seminar they said look at properties in rural towns with a population of over 10,000 people. Whyalla popped into my head. My 7 month pregnant wife and I high tailed it to Whyalla and harassed all the real estate agents for information on the best ex housing trust houses for the money. According to my software $33,000 was the top buy price and the last auction price was about $25,000 so we were all set to buy 3 of them. 1 week after returning from Whyalla the news headlines read “Whyalla Cheapest place in Australia to buy investment property”. We attended the Auction they all sold around $50,000. Dis-heartened again, we resigned ourselves that it just wasn’t meant to be
It wasn’t until March 2005 that I though about investing in property again. My parents were doing up their back yard. Mum rang and said that she had been talking to one of the guys who was helping his brother in-law out for the day painting the fence and he invests in property. He was coming around that night to talk to them would I like to meet him. I said I would and arranged the time. We talked at length about property and the difference in our experiences. He gave me the name of a guy to talk to. I called him and made an appointment. The following month (April 2005) we bought our first investment property. We bought our next one in May 2006 and we are on track to buy one every 12 to 18 months. I am 31 now and I am on track to retire at age 40. I now know that is isn’t that hard. |
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