Quite similar to most property investors, Eric Brown got into property investment to develop and maintain passive cash flow, but he admits that this specific goal—or any goal at all—was not in his mind when he bought his first property. "I just fell into [it]," he said about the fateful first purchase.
Eric bought his first property in Balmain last 2005 after he found out that his friend owned the property next door.
"I remember, at the time, we were arguing over $10,000. It was listed at $480,000. I only wanted to pay $470,000. We had this ongoing battle. Retrospectively, looking back at that, it's probably so silly of me to argue over that $10,000 because capital appreciation has been astronomical in that area. I'm glad I didn't pull out of the deal on that $10,000, I tell you. Very glad," he shared.
While there was definitely hesitation on his part, Eric was happy to have let his doubts go as he saw the property grow in terms of value. More than a decade later, the one-bedroom property is now worth $1.35 million and Eric grew to be the owner of an impressively diversified property portfolio.
"I've got a commercial property and I've got some higher-end residential and some lower-end residential. For different reasons, I purchased each of them. I'm glad I do have a bit of a diverse property portfolio," Eric said.
From his first purchase back in 2005, Eric has since learned the importance of goal-setting, getting good education, and seeking the right advice from the best professionals in the field. He has also found himself enjoying this venture, already dedicating himself to a "10-year play" of investing on properties.
"I got myself a really good property accountant and I do use a buyer's agent to purchase them because I'm fairly busy doing what I'm doing in the commercial industry. It didn't limit me though because I used people who are good at what they do to help me get to where I wanted to get to," he said.
"I love it. I get excited about it. I get passionate about it. When you're doing something you love and you love talking about doing things you love, it's easy to be enthusiastic and easy to explain to people why [and how] you do it."
Tune in to Eric Brown's episode on The Smart Property Investment Show to know more about his property investment journey and the lessons he's picked up along the way.