How this 32-year-old built a $2.5m property portfolio
Being a first-generation migrant who saw his parents work hard for everything they had, this property investor used it a...
Property investors who focus on fundamentals can take advantage of property markets regardless of conditions and perceived reputations of an area, a property investor has suggested.
In a recent episode of The Smart Property Investment Show, property investor Sarah Kendell revealed how she kicked off her investment journey following the financial crisis by buying in a “dicey” area.
Using her personal journey as an example, Ms Kendell said she bought her first property in “2008, which actually turned out to be quite a good time to be in the market, because it was just after the GFC.”
A slowing property market allowed the property investor to put on a competitive offer in a place in Redfern, which she explained was a good investment due to location.
Back in 2008, Redfern really was not an attractive area; however, as Sydney grew outwards, the area became a desired location, allowing the property investor to make solid yields and eventually a tidy profit.
During a property slowdown, the government was quite keen to stimulate more property market activity. So, as a first-time buyer, you could get pretty generous grants at that point, Ms Kendell said.
Ms Kendell said Redfern stood out to her due to the convenience of the area for people living in the city.
“Redfern was one of the last inner city areas that hadn’t been gentrified. So, it just seemed logical to me that it was going to, the value was going to increase quite dramatically,” Ms Kendell said.
Finally, Ms Kendell explained how investors can benefit from a growing market by purchasing a starter property before purchasing a larger home.
“It has always been my plan to sort of hold the place for about 10 years and then look at selling that and using the profits from that to upgrade,” Ms Kendell concluded.
Are you a property investor keen to share your story? Email [email protected]
Property refers to either a tangible or intangible item that an individual or business has legal rights or ownership of, such as houses, cars, stocks or bond certificates.