Case Studies
Our case studies showcase how ordinary people were able to achieve extraordinary success through hard work, determination, and our proven methods.
Caleb's Story
By this time, Caleb owned three units from the same complex and one outside in the next-door suburb. Talking with the bank, he realized he hit the ceiling in his ability to borrow.
Simon's Story
By now, Simon has seven rental properties. If he would sell all his investment properties and pay off his loans, he would be left with around 1.8mln in profit.
Caleb Story
Caleb, middle age, has a family – a wife and 4 kids.
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Strategy – purchasing low to medium-priced units, townhouses, and long-term hold, renting out those properties.
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First, Caleb focused on his home repayments, reorganized finances, did accelerated repayments, and paid off 90% of his loan. Sold the property, took advantage of the capital growth, and purchased a new large home for his family. His new loan was only 10% of the value of the home.
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He then concentrated on purchasing rental investments. His initial thinking was to buy each of his kids a unit where they could live once they decided to move out of home. In the meantime, he will be renting out those units.
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He chose the area that is close to his own home and purchased his first unit. He did not do any renovation or updating to the property and wanted just a passive income. Rented out via the agency.
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Because his loans were low and he had a huge equity, he quickly purchased a second unit and repeated what he had done before.
A year later, he found out that another unit was for sale in the first unit complex. He decided it was time to buy a third investment, organized a loan, and bought this property.
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He then decided to start managing all properties by himself, without an agent, saving himself an extra 2,5K per year per property.
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In the meantime, the capital growth of those first two units started to grow and rental income got higher, Caleb had a taste for it by now. He started asking the question – can I do more? – the bank said yes and he was on a hunt for the next property.
After organizing his pre-approval for this fourth property, a unit from the same complex came out on the market. Knowing this complex very well, he quickly got hold of this unit.
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By this time, he owned three units from the same complex and one outside in the next-door suburb. Caleb went to the bank to enquire if he could do more. Talking with the bank, he realized he hit the ceiling in his ability to borrow.
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Now he had to increase his income, reduce the liabilities, and wait for capital growth to catch up a bit more.
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A year later, he negotiated a salary increase and increased his rental income. At that time, the interest rates went down and capital growth went up for the existing properties. All these gave him the new ability to borrow.
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He just repeated what he had done before.
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By now, his home loan is completely paid off, and he owns 8 investment units and townhouses, 6 of which are in the same complex (where he became one of the main heads in the strata committee as he owns the biggest share of units in the complex). All his investment properties are positively geared, meaning his rental repayments are covering expenses, including bank repayments. If he would sell all his investment properties and pay off the loans, he would be left with 1,5 mln cash (this is besides his own home he is living in).
Simon Story
Simon, middle age, has a wife and three kids, two of whom are independent now.
Strategy – passive investment and a full range of diversification. His own home is fully paid off.
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Simon did not want to spend much time learning the market and forecasting, he rather concentrated on getting one of each type of property, on different markets, a sort of, pot of luck.
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He hired a buyer’s agent to find him properties in different states – he purchased a townhouse in Brisbane and then a house in Sydney in his first year of investing. He aimed to achieve capital growth as a main goal, and he did not worry about rental income, as his salary was high and he was OK to do negative gearing through his tax return.
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A year later, he purchased a newly built apartment in Melbourne.
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He hit the ceiling in borrowing after this, so the strategy needed to be slightly corrected, so he could continue his journey with investment properties.
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He renovated the townhouse in Brisbane and did some updates in the house in Sydney. That allowed him to charge higher rent for those properties.
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Simon used agents to manage all properties and renovations as well. Passive investments were one of his goals from the beginning. He is a mathematician, and his approach is exactly this – this is just a numbers transaction.
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He improved his borrowing, and he purchased a house in Adelaide with a big block. He rented out a main house and subdivided a block. He sold the subdivided block and used this money to purchase another house in Perth with the big block again. He subdivided this block and built on the subdivided block. Then he bought an old house in Adelaide, demolished it, and built two houses with subdivisions there.
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By now, Simon has seven rental properties. Although Simon is not fully cash-positive in all of the properties, his main purpose was a passive approach, with other people managing it all for him, with a full range of diversification in his property portfolio. If he would sell all his investment properties and pay off his loans, he would be left with around 1.8mln in profit.
