John Pidgeon started his investment journey at 21, fueled only by his passion for property. Now, with a portfolio worth $3.5 million, he plans to keep on going to provide a financially secure future for himself and his growing family.
John was fresh out of university when he decided to jump on the business of creating wealth through property. While growing up on a farm with financially conservative parents did not give him the knowledge he needed for investing in property, it gave him the motivation to deviate from the lifestyle he got used to since childhood.
“It was passion [that drove me and] it was also to create wealth… My mom and dad work[ed] nearly seven days a week and their philosophy was [to] work hard [so that] the results would take care of themselves—pretty conservative in nature, [they] didn’t invest a lot outside of the farm.”
His father passed away just before he bought his first property in country Victoria, the same place he grew up in. “What I realized was he didn’t actually get the most out of his life from the enjoyment point of view because he was working all the time,” John said.
This unfortunate event opened his eyes to the fact that he can do so much more in his life without having to work until he’s 70, as long as he remains smarter about wealth creation. Since then, he has worked hard to create passive income by investing in properties. Two decades later, John is now aspiring to reach the goal of retiring by 30.
“I was thinking, ‘Well, this is going to be torture for the next 30 years.’ Now, having run my business, I love what I do on a daily basis [and] I can’t even see myself not doing that… I think it’s more about the choices to say, ‘If I want to go away or take my family away for three weeks or a month at a time, I can do that,’ ” he said.
While he has not stopped working yet, he and his family are now definitely able to enjoy life at the moment—all thanks to his early start in property investment.
Now, John aims to continue growing his property portfolio in the hopes of passing on some of his assets to his three children, who are now at age 4, 6, and 8. He also wants to maintain the value of his portfolio at $3 million, or go higher, in order to continue towards the path of success.
"If you’ve got a solid portfolio that’s giving you 5 per cent solid growth on an annual basis on a $3 million-portfolio, that’s roughly $150,000 a year that your portfolio’s increasing by, I suppose,” he explained further.
“So, whether you draw down on some of that or sell some properties as you go, there’s a number of ways to consolidate, but I think that gives you real choices in your life. Whether that’s made up of three properties or ten properties, I think it’s [all about] the performance and where they’re located.”
Like many people who have found success in the business of creating wealth through property, John believes that things will continue to look up for investors who are willing to dedicate their time seeking good education and mentorship. After all, Australia is a “very liveable nation" and the waves of migration remain strong—creating more opportunities for jobs and investments.
His advice to budding property investors: “It comes down to not so much just going to invest but where am I going to invest next—doing that research to ensure that the supply and demand issues are in check, [knowing if] there’s population movement in that area… affordability, and what you’ve already got in your portfolio.”
Tune in to John Pidgeon's episode on The Smart Property Investment Show to know more about his experience buying and selling in different markets, how aligning himself with a mentor helped steer his journey in the right direction, and how striking a healthy balance between cash flow and capital growth has enabled his portfolio security in the face of a downturn.