Sydney real estate: man owns six properties at 32

A Sydney dad can boast of having a portfolio of six properties worth $ 2.7 million by the age of 32. Here is how he did it.

At 32, Bobby Haeri owns six properties in two different states with a net worth of $ 2.7 million.

Sydney’s dad bought his first property when he was just 18, after sharing the costs with his sister and dad.

Since then, he has used his loans, rent, lender’s mortgage insurance, and salary to purchase five more properties.

“The reality is you have to make sacrifices, maybe not go on vacation for a few years, create a budget or you may have to work 12 hours a day,” he told to.

“Working only eight hours, one day five days a week is going to be difficult to get through the early stages.”

Mr Haeri says he now works 12 hours a day, six days a week, running his own real estate agency, while raising his daughter Mia, 1, with his wife Dionne.

Although he admits he currently has $ 1.89 million in debt, he has good cash flow.

His tenants bring in about $ 10,000 a month and he only has to pay $ 7,000 a month on his mortgages, leaving it in his pocket.

Mr. Haeri went straight to full-time work starting his own gardening business after graduating from high school and bought his first property in 2008.

It was a $ 550,000 off-plan two-bedroom, two-bathroom apartment in St Ives, north Sydney.

“At that point there were government grants and stimulus, it was about a five percent deposit. You didn’t have to pay stamp duty, you paid stamp duty and you get it refunded, ”he recalls.

They paid $ 27,500 to secure the apartment.

At 21, he leveraged his share of the equity in his first property to buy the second.

This time it was a two bedroom, one bathroom apartment in Killara, a nearby suburb of St Ives, for $ 570,000.

“I listened to podcasts, read books 11 hours a day when I was gardening. I felt like I knew a bit more about the property, ”he said.

There were tenants in both properties who were covering her mortgage costs.

A year later, Mr. Haeri decided to sell the Killara apartment as he had just become engaged to his wife Dionne.

As it was during Sydney’s real estate boom, the apartment cost $ 100,000 more than he paid for.

He used some of that money to fund his wedding and honeymoon two years later at the age of 25. The rest went to a new home for him and his wife, which, like the previous apartment, cost $ 570,000.

It was a one-bedroom apartment in Brookvale, in Sydney’s North Beaches.

The mortgage payments of $ 2,200 per month were “comfortable” as her gardening business was doing well and Dionne was earning an engineering salary after graduation. Between them, they made a little over $ 100,000.

For this reason, Mr. Haeri said in advice, “you absolutely want to try to do it (build a real estate portfolio) with someone”.

With two properties under his belt, Mr. Haeri decided it was time to try something different.

In 2017, he heard that there would be numerous government infrastructure and construction projects in Grafton, a town in the Northern Rivers region of New South Wales.

“This is how the district becomes bourgeois, this is when we see these regional cities experiencing significant growth,” he said, adding that he had wanted to diversify his wallet.

The couple bought an established home in Grafton for $ 290,000.

“The thought process was that we knew we wanted to build a real estate portfolio, but the cash flow returns in Sydney were nonexistent,” Mr. Haeri said.

“You can’t own more than two properties inside Sydney because it’s too difficult financially. “

He believes 90 percent of investors are “stuck” at the helm of the two properties.

Then they grabbed a block of vacant land of $ 65,000 and 700 square meters also in Grafton.

They divided the vacant lot in half and built two houses with three bedrooms and two bathrooms, completely identical.

Each house cost $ 260,000, but they only needed a 10% down payment for construction.

At this point in 2017, Mr. Haeri owned five properties.

A year later, Mr. Haeri and his sister then sold their very first property.

“I wanted to keep building my portfolio and my sister didn’t,” he said.

“It was easier to leave with my money, she left with her money.”

They had kept the St Ives apartment for 10 years. It sold for $ 790,000, up from $ 550,000 when it was originally purchased, putting an additional $ 100,000 straight into his pocket.

The same year in 2018, Mr. Haeri “moved away” from his gardening business, delegating tasks to others but still reaping the rewards, giving him time to start the Investors Agency specializing in gardening. immovable.

They also left their Brookvale home and opened it to tenants. That way, they could live in a cheaper place and have the rent covering their mortgages.

The couple had worked hard to pay off their mortgages “quite aggressively” and felt ready to buy again in early 2020.

In March of last year, the Haeris looked even further, this time to Queensland.

They got a $ 300,000 house in the southern Brisbane suburb of Kingston, a 30-minute drive from the CBD.

In July of the same year, their daughter Mia was born.

Barely three months later, in October, they bought a $ 302,000 property in Deception Bay, a northern suburb of Brisbane.

It was his sixth simultaneous property.

However, they are building grandma’s apartments behind the houses in Brisbane and one in Grafton.

The couple make a quarter of a million dollars between them.

Now an associate engineer, Mr. Haeri’s wife earns $ 130,000 while he earns $ 120,000 per year.

Mr Haeri said his impressive portfolio of six properties would not have been possible with Lender’s Mortgage Insurance, or LMI.

He used LMI to secure the property of Brookvale and the two of Brisbane.

LMI is not as scary as it sounds, according to him.

“People shouldn’t worry too much about it,” he said.

“If you have $ 100,000, you can buy a house for $ 400,000 and you don’t buy LMI. Or you can buy two properties and their value increases.

“These appreciating properties will far exceed the costs of LMI.

“Then you can accumulate your properties twice as fast.

“Don’t focus too much on trying to save a 20 percent deposit.”

IMT is required when you have a deposit of less than 20 percent of the property’s value.

This is a one-off, non-refundable and non-transferable premium, which aims to protect the lender from financial loss if the borrower cannot afford the repayments of his mortgage.

It can be prepaid or added to your home loan.

Mr. Haeri said some of his loans are principal and interest, while others are interest only.

However, next year he plans to transfer everything to interest only.

“We take some free time to spend with Mia, that way we have the passive income,” he said.

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