How this investor manages a 39-property portfolio
In a recent episode of the Smart Property Investment Show, host Phil Tarrant sat down with George Markoski, a property investor with a portfolio of 39 properties.
Markoski shared his journey, strategies, and insights into property investing, highlighting the importance of research, financing, and long-term holding.
Markoski, who retired at the age of 37 through property investing, revealed that his interest in property began at a young age. He started investing in the late 90s and initially focused on negative gearing older properties.
Over time, he shifted towards new properties for better tax deductions and began incorporating development projects into his strategy.
To make informed investment decisions, Markoski relies on data and research. He rates suburbs based on supply and demand ratios, looking for areas with potential for growth. He emphasizes the importance of understanding the long-term averages of property growth rather than getting caught up in short-term fluctuations.
With a large portfolio, Markoski faces financing challenges. Banks often view investors with multiple properties as high risk. To overcome this, he works with a mortgage broker and mortgage manager who understand his unique circumstances and can navigate the complex financing requirements. He also advises balancing tax minimization strategies with the ability to secure loans by showing income from a business or job.
As Markoski's portfolio grew, he faced challenges related to structuring and land tax. Changes in land tax laws in South Australia impacted his existing trust structure, leading to higher land tax obligations. He is currently untangling the structure and considering selling some properties to diversify his portfolio and minimize the impact of land tax.
Despite the challenges, Markoski remains optimistic about property investing. He believes that property prices in Australia will continue to rise due to population growth and the intrinsic value of property. He advises against selling properties and advocates for holding onto them to benefit from long-term growth.
George Markoski's success as a property investor serves as an inspiration for aspiring investors. His journey highlights the importance of research, long-term holding, and strategic financing.
While challenges such as land tax and financing requirements exist, Markoski's story demonstrates that with careful planning and the right team of professionals, building a successful property portfolio is possible.
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Photo: George Markoski (left) and one of his students (right)
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