fair enough, however that is, I assume, today's metric.
Would that same 7% have been valid 3 years ago when his purchase of 6 properties started ? I assume it would have been a little higher.
Frankly, I smell a fish for someone who was clearly not on a large income... if he was on a wage of $100,000 3 years ago, sure... but that does not seem to be the claim.
He may have got some tips?
WHAT WOULD EDDIE DO? MAAAATE! Share a cot with Milton?
13 properties returning gross rent, on average, of less than $200pw per property. Must be some real slums.
Possibly they are and full of young pizza delivery lads munching on dumpster pizza and two minute noodles saving up for their next investment property.
The Glass Pyramid - Transmitting on random frequencies to no fixed schedule............ www.pfh007.com
Tony Fleming, 28, purchased 13 properties while working for a pizza franchise in Western Sydney Link
A FORMER pizza deliveryman has become an unlikely real estate tycoon after buying 13 properties and “semi-retiring” at just 28 to live off his rental income.
Western Sydney resident Tony Fleming said he decided to hang up his apron at Domino’s Pizza earlier this month after the gross rental income on his property investments grew to more than $130,000 a year. No longer in the workforce, he plans to dedicate his new found time to his passion: buying more homes, including a soon-to-be concluded 14th property purchase. Three of his properties were purchased in the last 10 months alone — a time when housing values increased by an average of 10 per cent across much of NSW. The way in which he started his property investment journey is just as remarkable. Mr Fleming bought his first home, a three-bedroom townhouse in the Penrith suburb Kingswood, at 19, while delivering pizza for $10 an hour. Eighteen months before that purchase he had been snowed under in debt from a car loan, but a strict savings regimen and extra hours at work helped him pay off the money quickly and scratch together a deposit.
“I worked 60 hours a week, some weeks for seven days straight, and lived with my parents,” Mr Fleming said. “That helped me save a lot faster. I still only had a small deposit. The rest was First Home Owners’ Grant, which was more generous back then.”
The home Mr Fleming purchased was a rundown property in need of work, which helped him negotiate a $189,000 price. He reduced his mortgage costs by getting friends to rent out his spare rooms. A renovation helped double the home’s value within a year, which allowed him to refinance his loan and draw equity out of the property to use as a deposit for subsequent property purchases.
These included another property in Kingswood and units in St Marys, which he purchased under value. His most recent purchases were in regional NSW and South Australia. Mr Fleming attributed his success to an unconventional buying strategy. He ignores his own property tastes and buys homes based purely on their rents and potential to increase in value. As their value grows, he draws out equity to leverage into his next property. Part of what made this strategy work was his extreme approach to saving, even when he later became a Dominos store manager with a slightly higher wage.
“I survived on two-minute noodles and free pizza,” Mr Fleming said. “I was always working, so I never had the chance to spend money.” Such an approach is vital in a market where prices have spiralled out of control, he added. “Just because you’re on a low income doesn’t mean you can’t buy property,” he said. “You just have to be careful with money. You don’t need to go on holiday all the time. Try drink less alcohol. If you can reduce your non-deductible debt it will help.” The potential reward is worth it, Mr Fleming added.
“It was a wonderful feeling leaving work knowing I didn’t need to come back. I’m hoping to now help other people on a low-income get started. So many people think they have no chance of buying property and they shouldn’t bother. I want to change that.”
Why on earth did he need a car loan? he could of done without that!
Nothing to show for that and it depreciates. If he is good looking he could be excused but if not well it is like going on a bender with cannabis, escorts and porn.
He also cannot exactly rabbit on about the virtues of drinking less booze, he ate a diet of crap, not too clever he is in some ways.
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$ It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do. Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
13 properties returning gross rent, on average, of less than $200pw per property. Must be some real slums.
It probably includes some country homes, which have better % rent return, but far less growth, and they are exposed to local industry issues. One horse town issues - but I'm speculating.
His strategy is dependant in rental returns and he would be not want long vacancy in between leases and he would want to organize early marketing of the prop if the tenant wishes to vacate.
Stable leases and good returns.
Terry
14 Oct 2016, 04:02 PM
Sure. The best car deals are made with upfront cash, which probably has low incidence in most car purchase transactions in Australia.
Used to have zippy Suzuki until the clutch died, but I did drive it badly. First ever car was no lemon yes paid by cash.
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$ It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do. Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
Australian Property Forum is an economics and finance forum dedicated to discussion of Australian and global real estate markets and macroeconomics, including house prices, housing affordability, and the likelihood of a property crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is the Australian property market a pyramid scheme or Ponzi scheme? Can house prices really rise forever? These are the questions we address on Australian Property Forum, the premier real estate site for property bears, bulls, investors, and speculators. Members may also discuss matters related to finance, modern monetary theory (MMT), debt deflation, cryptocurrencies like Bitcoin Ethereum and Ripple, property investing, landlords, tenants, debt consolidation, reverse home equity loans, the housing shortage, negative gearing, capital gains tax, land tax and macro prudential regulation.
Forum Rules:
The main forum may be used to discuss property, politics, economics and finance, precious metals, crypto currency, debt management, generational divides, climate change, sustainability, alternative energy, environmental topics, human rights or social justice issues, and other topics on a case by case basis. Topics unsuitable for the main forum may be discussed in the lounge. You agree you won't use this forum to post material that is illegal, private, defamatory, pornographic, excessively abusive or profane, threatening, or invasive of another forum member's privacy. Don't post NSFW content. Racist or ethnic slurs and homophobic comments aren't tolerated. Accusing forum members of serious crimes is not permitted. Accusations, attacks, abuse or threats, litigious or otherwise, directed against the forum or forum administrators aren't tolerated and will result in immediate suspension of your account for a number of days depending on the severity of the attack. No spamming or advertising in the main forum. Spamming includes repeating the same message over and over again within a short period of time. Don't post ALL CAPS thread titles. The Advertising and Promotion Subforum may be used to promote your Australian property related business or service. Active members of the forum who contribute regularly to main forum discussions may also include a link to their product or service in their signature block. Members are limited to one actively posting account each. A secondary account may be used solely for the purpose of maintaining a blog as long as that account no longer posts in threads. Any member who believes another member has violated these rules may report the offending post using the report button.
Australian Property Forum complies with ASIC Regulatory Guide 162 regarding Internet Discussion Sites. Australian Property Forum is not a provider of financial advice. Australian Property Forum does not in any way endorse the views and opinions of its members, nor does it vouch for for the accuracy or authenticity of their posts. It is not permitted for any Australian Property Forum member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor. It is not permitted for Australian Property Forum members to ask for or offer specific buy, sell or hold recommendations on particular stocks, as a response to a request of this nature may be considered the provision of financial advice.
Views expressed on this forum are not representative of the forum owners. The forum owners are not liable or responsible for comments posted. Information posted does not constitute financial or legal advice. The forum owners accept no liability for information posted, nor for consequences of actions taken on the basis of that information. By visiting or using this forum, members and guests agree to be bound by the Zetaboards Terms of Use.
This site may contain copyright material (i.e. attributed snippets from online news reports), the use of which has not always been specifically authorized by the copyright owner. Such content is posted to advance understanding of environmental, political, human rights, economic, democratic, scientific, and social justice issues. This constitutes 'fair use' of such copyright material as provided for in section 107 of US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed for research and educational purposes only. If you wish to use this material for purposes that go beyond 'fair use', you must obtain permission from the copyright owner. Such material is credited to the true owner or licensee. We will remove from the forum any such material upon the request of the owners of the copyright of said material, as we claim no credit for such material.
Privacy Policy: Australian Property Forum uses third party advertising companies to serve ads when you visit our site. These third party advertising companies may collect and use information about your visits to Australian Property Forum as well as other web sites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here: Google Advertising Privacy FAQ
Australian Property Forum is hosted by Zetaboards. Please refer also to the Zetaboards Privacy Policy