How to turn $27.30 into $680,000!
One of the most exciting testimonials comes from Brad.
When he started work at age sixteen, all he could find was some part-time work in stores.
Nevertheless, he started a savings plan and had $27.30 deducted each month from his pay and waited for it to grow.
In due course, he became a librarian for the local City Council, a job he has held now for many years.
Twelve years went by and by this time, his modest $27.30 had grown with some interest to just over $5,000.
Brad purchased a small home in Elizabeth Vale South Australia, in 1996 known locally as a "semi-detached" home, or more commonly a duplex.
Brad's first purchase $54,450
In 2012 valued at $190,000.
After moving in, Brad kept saving his $27.30 per month and then saw the market increase the value of his home to the extent that he could take those savings and borrow the equity from his first home to begin a portfolio of investment properties.
In November 2001, five years later, Brad purchased his first rent property. Again, a modest duplex. The rent returns were sufficient to pay all costs including the interest.
Brad's first rental property purchased
for $47,000 sold in 2006 for $115,000
Also in 2001, Brad was able to buy his third property, this time a single dwelling, for $82,000. This property was located on a large corner allotment. The plan was to eventually cut off the back yard and create another block of land to build on.
Again, using no money of his own and borrowing against the equity built up over the past five years, this home also is cashflow positive. In other words the rental income paid for all costs
including interest on the loans.
Third property purchased in 2001 for $82,000.
Current value would be $210,000.
Two years later in 2003, Brad purchased his fourth property, another duplex, using equity in the first three homes.
Fourth property purchased for $72,500
Sold in 2006 for $115,000.
Using the proceeds from the sale of the second and fourth homes, Brad paid off his family home which is now debt-free. He also proceeded to cut off the back yard of the second rental property as planned when he bought it, and built a lovely brand new 4 bedroom home on the allotment. This home is currently valued at $280,000 and rents for $285 per week.
Brad's current position is that he has three properties valued at $680,000 with loans of around $280,000. The family home is debt free and the rents received means they are positively geared, or showing a small profit.
I hope you have enjoyed reading Brad's story! He is now looking at his next investment opportunity.
The story shows how a person on a modest income can create real wealth out of careful investing in property.
Sure, the prices were lower when he started, but everything is relative and the same opportunities exist today just as they always have!
Brad is happy for me to share his journey to encourage you to move ahead and create your own success story in property!