4 Properties in 2.5 Years (Simon’s Success Story)

Simon has recently purchased his 4th property. We sit down and have a chat about how far he has come as a property investor. How this investment fits into his overall goals and how he plans to achieve financial freedom through his investment properties.

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0:00 – Introduction
1:01 – 2.5 years ago
1:59 – Reasons for 4th property
3:57 – How does this property contribute to Simon’s portfolio
6:20 – What’s next for Simon?
10:07 – Being intentional to achieving financial freedom
11:27 – Did it get easier along the way?
13:30 – How can you get started sooner
14:38 – Saving deposits or drawing equity
16:33 – Simon’s new phase of life
18:10 – Get a free strategy session

Recommended Videos:

Simon’s Journey Playlist

Transcription

Ryan 0:00
big congratulations, man and buying your fourth property. Thank you very exciting. All properties in two and a half years, I think we worked it out onto that, which is absolutely insane going back three years ago

Simon 0:14
when we’re talking about saving your deposit, dude, it’s, it’s crazy, like I never in my wildest dreams would have thought that that was going to be a reality. So super grateful how it’s all worked out. And yeah, it’s very freeing feeling now that that accumulation phase is kind of done,

Ryan 0:30
yeah, ticked off. And then now it’s moving on. So for those of you who haven’t been following Simon’s journey over the last three years, it’s been really exciting to watch. And we filmed videos along the way, which I will link up down below. But we’re going to give you the rundown of his journey, how he started. And then I guess the properties that you purchased up until this point,

Simon 0:50
yeah, nice how it’s changed as well, because it’d be interesting if you link up that first video we did walking by the water like three years ago, and see if it’s accurate. So that’s what I’m going to be focusing on for my first property try and buy within walking distance to the beaches utilize that as potentially a cash flow property, if the opportunity pretend presents itself, but more so one of those properties that will hopefully achieve a real, some really significant capital growth in the long term, I’m really going to strategically identify the right suburb that I want to be targeting the right pocket of that suburb, the right type of property that has the potential to manufacture value, maybe either really depleted home that one day, I could knock it down and rebuild, or on a really large piece of land where I could maybe add a granny flat in the backyard at some point in time to still have that cash flow option. But still really good area and location that hopefully is going to get me really great capital growth, the goal is to purchase equality where I can ideally manufacturers and short term equity, so I can leverage into that second property within 12 months to 18 months.

Ryan 1:58
So you’ve just purchased your fourth property after saying that you’re done at three. So let’s just start there about what changed, and then we’ll go back.

Simon 2:08
Sure. Um, so the main purpose was, number one, serviceability. So after I’ve purchased a third, why then refinance the portfolio and one Bay just to get everything nice and secure. And then after that refinance, I got told that we had additional servicing. And I’ve been doing a lot of research with what’s been how the markets been tracking what’s expected to happen, what’s expected to happen moving forward, and I just had a had a gut feeling that Simon 10 years from now would have regretted not buying another property, especially when it was in my power, you know, you’ve got a lot of unique things coming together right now, that have just given me that confidence and motivation to push that a little bit further. You know, main things being like record low interest rates in the RBA, saying they’re going to hold on for another, at least another two to three years. You’ve got super affordable property prices, really strong rental yields, you’ve got heaps of people moving up to Brisbane right now massive infrastructure projected, I could imagine a whole heap of population growth once the borders open back up. And it is, from the research that I’ve done that all the fundamentals that have driven really strong price growth in the past. So just wanted to take advantage of the opportunity, trying to think with hindsight about how I would feel in 10 years time if I didn’t,

Ryan 3:32
and that’s the thing. I think having that long distance view, as you said, Simon in 10 years, 15 years, what’s he going to think? And where’s he going to be in that time? Because there are so many times I find people are thinking, What’s the market going to do in the next 12 months? Has it already been too much? Or is it going to go down and they get stressed about that? You’re thinking very long term. So talk us through this property you purchase in Brisbane, which we have lots of videos talking about why we think Brisbane is a good market at the moment. So we can touch on that. But let’s not go too in depth. Because people can go back and check them out if they want. But talk us through this property. What made you purchase this one? And how’s this property different to other properties in your portfolio? Or how does it contribute to your portfolio and your long term vision as a whole?

Simon 4:21
Sure. So it’s very different to any of the other properties that I bought because this one is a super low maintenance property. It’s a low low maintenance, low set brick and tile home three bedroom, one bathroom on a nice big flat 700 square metre block of land. It’s about 23 K’s from the Brisbane CBD there’s really good schools surrounding it. There’s only about 26% renters in the area. There’s vacancy vacancy rates sitting at about point 8% right now, point eight of a percent. There’s you know, shopping centers nearby just a really good profit, really good area, really good property and for me It was just getting another, you know, both capital growth and cash flow property in the portfolio. So this one actually has a potential to add a granny flat in the backyard, which I’ll be able to rent out completely separately. Plus is kind of trying to time the Brisbane market is close to the bottom as I possibly can. So I picked this property up for just over $450,000. And it should rent out for about $450 a week. So given me a 5% rental yield, and that’s given

Ryan 5:27
current interest rates that probably be positive cash

Simon 5:29
flow right time. Yeah, it’ll be it’ll be well and truly positive cash flow in the very beginning, so less stress. And then I’ll get in there in maybe six to 12 months time once I can afford it to build a granny flat in the backyard. And I’ll bring that one out completely separately for about an extra $300 per week. So at that point, it’ll be Yeah, significantly positive cash flow. But everything suggests that this suburb should have some solid capital growth over the long term as

Ryan 5:58
well. So you’ve invested for growth and for cash flow. So you take both of those boxes, basically. And that’s what Simon in 10 years once is, yeah, for over time, the property to have grown in value, but then also for it to have been paying itself off, and hopefully rents to be going up as well. So what’s next for you? Now you’ve got three investment properties, you’ve got your own home, which you’re renovating, and is looking amazing. I still haven’t been there. So check it out later today, I think. But what’s next for you? Now, you said at the start of this episode that you’re done with your consolidation? simulation phase? And so

Simon 6:39
yeah, so with the portfolio that I currently hold, it should enable to me It should enable me to achieve my financial freedom goal in the future, once I’ve obviously added some cash flow by adding granny flats and doing some unique things to the portfolio. Okay, I’m gonna still

Ryan 6:55
be there, because you just said that, like, it was so easy, but people listening to this are going to be like, Oh, well, okay, how do you get from owning three investment properties to actually achieving that financial freedom? Like, how are you going to do that show with those properties shows.

Simon 7:09
So right now, they’re all just single income standalone houses. Two of them, I’m just going to knock down and rebuild a, you know, big house like a big multi generational house, because a lot of the data that I’ve been reading, and some of the articles that I’ve been following have are suggesting that there is a massive under supply of affordable housing, and there’s massive under supplied multi generational housing as well, because you’ve got the baby boomers reaching retirement, a lot of them not being able to afford their own brand, you’ve got increasing rents and increasing property prices, which is making it harder and harder for first time buyers to get in. So if there is a unique opportunity for this sort of, you know, multi generational housing, it’s obviously not everywhere. But you’ve got to really strategically pinpoint the areas that you can do that which I fortunately have done. And so I’ll be able to generate about a 6% yield from all three of the investment properties. Yeah, so being a 6% yield in the third largest capital city in Australia, is kind of unheard of for just standalone residential housing. But that’s going to give me that increased cash flow, but then what I’m going to have to do, which is the hard part, that’s next hard part is pay down the debt. Because you know, let’s say today, if I had all three houses set up the way that I want them, they should be all returning around $700 a week. So that’s about 20 $100 a week combined,

Ryan 8:39
or about 100 grand a year,

Simon 8:40
about 100 grand a year. That’s obviously net, you got to take off your holding costs, etc. But in my opinion, that’s going to get me to a point where I’m going to be able to have a happy life, have choices, travel, you know, do the things that I personally want to do. Like, I’m not looking to be a rich guy drive fancy cars by private jets or anything like that. I just want to be able to go surfing, go on like holidays around Australia, maybe go snowboarding once a year and just

Ryan 9:07
enjoy the lifestyle and enjoy the choices that come with financial freedom. So the journey is not over for you yet, you’ve still got some things to do to your properties in order to bring them to the cash flow that you want. Whether that be building a granny flat on one potentially, or knocking down and rebuilding new houses on the other ones to improve the yield, and then pay off the debt. So eventually, I guess the goal is to be debt free. Yeah. And then just live off the rental income of those. So I guess I want to clarify that to people that you’re not in this hamster wheel or journey of just trying to buy houses, you need the growth and then you’re gonna flip them and that’s how you’re gonna be financially free. It’s just, it’s actually super simple. Yeah, like the most complicated part is Yeah, you might need to build a granny flat or knock down rebuild, but then you just got to hold them. It’s the long term buy and hold strategy.

Simon 9:54
Yeah, it’s just a simple sort of set and forget strategy. Yeah, yes. There’s a little bit of work required but welcomed trying to become financially. Nobody’s just gonna hand it to you.

Ryan 10:06
I always say financial freedom is not going to happen by itself or it’s not going to happen accidentally, you need to be so intentional in your life in order to create 100 of that financial freedom. And it’s been so cool to watch. You be so intentional all the way back from safety deposit, not buying a mountain bike. Yeah. You know, even along this journey by constantly saving in order to buy new properties, looking for opportunities, talking to mortgage brokers see how much serviceability you have. You’ve constantly been looking at how can I do this? Which is why I’ve been able to do it so quickly. And it’s actually been surprising how quickly Yeah, I would never have guessed that. And I think you would have either

Unknown Speaker 10:46
No, no way back in late 2018,

Ryan 10:48
after you bought your first one, I don’t think you would have thought, okay, in another two and a half years, I’m gonna have for not a one to four. So let’s talk a little bit about that journey. And going from the first one, up to four, because we were talking this morning about the stats, and you were saying something like less than 2% of investors or 4% of investors, I don’t know the stats, but it’s very low percentage of investors. And we get above two properties, two investment properties, two investment properties. And you’ve now gone into three investment properties, which kind of puts you I was calling you a property expert. Oh, interesting.

Unknown Speaker 11:24
Yeah,

Ryan 11:25
let’s talk about that. Going from the first one. Was that harder, did the journey get easier along the way?

Simon 11:31
100%. The first one is always the hardest saving that first deposit is 100% the hardest. But fortunately for me, you know, I’ve I’ve been on a journey ever since finishing uni of just increasing my knowledge, skills, experience, and income. And, you know, that’s all come together over the year. So every year being money, I’ve been managing to increase my income by, you know, increasing my responsibility within my role and learning a hell of a lot more about the things that can allow you become a bit of a higher income earner.

Ryan 12:02
So that’s it, you’ve, you’ve invested so much into yourself. And I’ve seen that over the years and challenges come up. And you always seem to rise to those challenges, and even go above and beyond that. And so you’ve really pushed yourself to increase your income. So would you say that it was increasing your income that allowed you to get to this point

Simon 12:22
that cross finding an epic partner to pay you is a super hard worker and hard saver. So when we kind of became really solid, we consolidated our our savings. And that enabled us to kind of move forward a hell of a lot quicker as well, as well. So she came in with a really good deposit, which enabled us to buy our own home. And then for all of the other ones that have been saving up deposits to get in. So if those first

Ryan 12:50
two you did by yourself versus

Simon 12:53
100% by myself, third home was with my partner ty. Yeah. And then the fourth one was us together again. Yeah, using a combination about our savings. I do,

Ryan 13:04
it’s so exciting. You guys should go back, I’m going to create a playlist. I like your journey, because it should be so cool to watch. You grow up and mature. And also, you know, move through these really big steps of buying property. So I’m super happy for you. So excited. I’ll be joining you on the journey very soon, which we’re going to talk about in a future video you’re going to we were just talking before about how I’m currently saving my deposit. And like Yeah, dude, you’re talking about mortgage brokers. I’m like, No, no, you can probably do it really soon. I’m

Unknown Speaker 13:35
like, really?

Simon 13:36
Yeah, everybody says that they always miss set their expectations but probably six months because, you know, most people think you need a much higher deposit than you actually do. So that’s what I always say to people getting started on their journey no matter where you’re at, talk to the broker so you know exactly what you need to do. Because if they’re like, Hey man, you can buy first place with only $50,000 then hey, that gives you a bit of freedom to get in a bit sooner because bloody hard to save that deposit. Hey, was the first deposit the hardest 100% like so hard because I was earning the least amount of money. And I have to say the most amount of cash Yeah, for every single for every single property aside from my own home, we had to save so much for that first one it’s just the challenge but then as soon as compound you get a little bit of growth from the asset because I’ve been buying good areas at the right time and had a bit of short term growth plus a wage increase so being able to save a bit more money and still living within my means. Yeah, it’s it’s made made this journey a hell of a lot easier.

Ryan 14:37
Did you have to pull out equity in order to purchase this fourth one, or did you save the deposit again,

Simon 14:42
and saved another deposit?

Ryan 14:44
Yeah. Did you kill them with a savings? Yeah,

Simon 14:46
yeah, yeah, yeah, but I was still you know, driving around beat up old car that you know, doesn’t that only cost me 15,000 the old only actually cost me $4,000 in my own cash, like, you know, I was I went away to Melbourne for the weekend and may have applied to a life, let’s just have no budget this weekend, which we never do that. So I’m always really strict with our money we ate at home most of the time, we don’t go out all the time. You know, we don’t splash cash like because we know that we need to work super hard to get us to where we’re at. But now that we’re here, it’s really exciting because now we can kind of pump the brakes a bit and just go Okay, now we’re just gonna wait for some growth in when we go to the granny flats and the knockdown rebuilds, were definitely going to be leveraging off some of the equity from the portfolio.

Ryan 15:31
So the need to save is kind of slowing down slowing

Simon 15:33
down. So

Ryan 15:34
the last couple of years, you’ve really tighten your belt. Yeah, and, you know, budget really well and saved a lot. Yeah, now, that’s really cool. And it’s just been really cool to say how achievable it is. And if you’re watching this, and you’re thinking, wow, four properties, I could never do that. Looking at who Simon was as a person three years ago, him as a person probably couldn’t buy four properties, like Simon three years ago, probably couldn’t even even imagine that or think, yeah, maybe over 10 years, I’ll do that. And then Simon today, you have changed so much as a person, as you said, You’ve grown, buying properties has increased your experience in the area, increase your confidence massively in your skill set. And then as you said, also growing your income as well. So big, massive Congrats, man, I can’t wait to see what’s next year and see how you,

Simon 16:28
it’d be. It’d be interesting, hopefully next year is a bit more. Just taking it easy. And just Yeah, I just said loosening the bell, you know, just loosening up as a person a bit. Because you do. You know, one thing that I will say is like I’ve been in hunter mode, like I’ve been in, you know, very focus, big picture thinking, learning, educating, saving, sacrificing more than any of my friends, like more than any of my friends. So it’s been a very, very sort of hunter mentality to get to where I am at now. Yeah, and I want to move back to the guy that I was, you know, three, four years ago, you know, just a bit more of a happy go lucky guy. Yeah. Hopefully give back a bit more. Start doing some work with charities start focusing on myself, my relationships with friends, family, everybody. And yeah, just kind of take it easy, because I’m not that like crazy guy, normal children.

Ryan 17:24
But you what you’ll find is that because you’ve built up this habit of goal setting and saving, and you’ve built up that skill in your life, he’s even as you take your foot off the off the pedal, put on the brakes a bit, you’ll still have that and it will come easier to you and you’ll get your happy go lucky vibe. But you’re also still be saving. Yeah, we still be investing like I will not be shocked. Even six months or a year’s time we’re talking about the fifth property. Because that’s what happens with Ben. He’s always like I’m done for now. And then I talked to him, he’s like, yeah, just bought another property. It’s just such a good opportunity came up. And so it’d be cool to say that journey and see where that goes, if it goes that way. But if you’re out there and you’re thinking, look, I’m really interested in this. I’d love to get started on this property investment journey. Maybe not doing it as quickly assignment. But yes, start investing in property, getting some good growth, getting some good cash flow. Then Simon Linton, Ben and the team over Pumped on Property do offer free strategy sessions. So head over to onproperty.com.au forward slash strategy. You can learn about that over there. You can get on the phone with one of them, talking about where you’re at, talk about where you want to be, and you know how you can start to move towards that. So that’s completely complimentary. So go ahead, check that out. Again, congratulations. And until next time, stay positive

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