Finance advice

How this young investor start his investment journey without inspiration

By Bianca Dabu
property investment, investing, investor, property market, rental market, investment journey

Jack Henderson was only 18 when he bought his first investment property, which is a $720,000-worth two-bedroom unit in CoogeeCoogee, NSW Coogee, WA, after spending roughly three years saving money from his first job at a construction company.

According to the young investor, there was no ‘real driver’ for him when he started his property investment journey two years ago—he was a school dropout and his parents were not enthusiastic about him getting into the business of creating wealth through real estate.

However, at the age of 21, he has successfully built a two-property portfolio and is currently on the way to purchasing his third asset.

Learning from experience

Jack was in Year 10 when he realised that he liked to learn from experiences instead of in the four corners of a classroom.

He said: “School wasn't for me [because] I'm sort of a person that wants to learn off someone … because I want to be where [he is].”

He then walked straight into a job at his father’s construction firm until he got his license. While there were “a few jabs in the ribs” at his first job, it was an easy start for Jack and it paid him well.

According to him: “I saved it [for] over a few years—I was probably saving, some weeks, nearly a hundred percent of my wage [because] I had no expenses [since] I live at home with mum and dad [and] I didn't pay board [and] I didn't even have a car at that time.”

“I really had no bills. It was only discretionary spending, [like] if I wanted to go out and do stuff with my mates, that's the only thing I'd spend money on,” he added.

Seeing his savings adding up prompted Jack to think about how to make his money grow, so he started reading and listening to different resource materials until he came across property investment. 

Even though his parents had a bad experience with investing in property, having bought two properties which both turned to be “dud”, they did not necessarily shy away from encouraging him to jump into the property market—with a few little warning here and there.

According to buyer’s agent Steve Waters: “I think it's amazing that ... there was no real driver there for you ... there was no one saying ‘You should do this, you should do that.’ It was something that just came out of your gut, so to speak.”

Making the first step

Having learned what he could through self-education, Jack admitted that it was still hard for him to figure out how to make a good buy. That is until he came across one of Australia’s leading investment property experts Chris Grey.

Jack said: “I went to a lot of his seminars and we talked a lot on Facebook, he's always very helpful … [He buys] in the suburbs of Sydney, so I went, [thinking], ‘If he's doing it [there] and he drives a Lamborghini ... that's what I'll do.’”

After buying his first property in Coogee at the stage when “the market was steaming ahead”, he let a year and a half pass before buying his second investment property in Maroubra. Right now, he is already pre-approved for another property, which he plans to buy in Newcastle.

“That seems to be a strong area and there's a lot of infrastructures and stuff going up there. Newcastle reminds me of the Asian suburbs of Sydney … like Sydney Harbour [without the] Opera House,” he said.

His advice to young people who are hesitating to get into the property market for fear of failure and loss: Little sacrifices are always worth it in the long run. A lot of people want to buy property without having to pass on going out every weekend and spending their money on parties or travels.

According to Jack: “I drink, I go out and have fun, but it's very minimal … They say, ‘You're missing out on a lot of things [and] you're going to regret all this,’ but I don't think [about] that.”

“I look in ten years’ time when they're trying to get into the property market and they're wives have [babies … Meanwhile, I’ve been holding my properties for several cycles] … The goal is not to be retired [too] old,” he concluded.

Tune in to Jack Henderson’s episode on The Smart Property Investment Show to know more about the gentrification of a suburb, buying before content, and what your list of priorities should be for a new property.

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  ["title"]=>
  string(51) "Boost for investors as app sets up off-site bidding"
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  string(55) "boost-for-investors-as-new-app-sets-up-off-site-bidding"
  ["introtext"]=>
  string(144) "

Property investors are now able to identify and bid on auctions remotely using a new live-streaming functionality launched by Gavl.

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Called “Request an Auction”, the new functionality enables users to watch and bid on any Sydney or Melbourne auction remotely.

Through Gavl, prospective buyers are now able to register to bid on their preferred auction. The platform will obtain permission from the listing agent and confirm within 48 hours.

Vendors can also request to have their auctions broadcast to a larger buyer audience.

Co-founder Joel Smith said that auctions streamed on Gavl attract 47 per cent more viewers than traditional ones.

He said that Request an Auction will be valuable for remote buyers.

“Buyers are able to have Gavl attend any auction they nominate, so they will never have to miss out on an opportunity due to logistical complications in physically attending the auction.

“Vendors, too, have the opportunity to directly book an auction with us, so they can open up their event to buyers all around the world. With more potential buyers, they’re giving their property the chance to receive more bids and maximise their sales result.”

Mr Smith said that prior to the Request an Auction app, buyers were limited to what they could achieve through the Gavl technology.

Gavl is a live-streaming and bidding platform for real estate auctions.

Mr Smith said that it has streamed more than 6,000 auctions, which have achieved 3.5 million views from 50 countries.

Gavl’s Request an Auction function is currently being offered in Melbourne and Sydney only.

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Boost for investors as app sets up off-site bidding
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Having to split her time between Hong Kong and her original base of Sydney has not slowed Julia Tita’s goal of building a high-performance Australian property portfolio. Instead the resulting alterations to her strategy have positively impacted her investing success.

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Having recently purchased her 6th property, Julia joins host Tim Neary to discuss her journey, share her ups and downs over the years, and reveal her thoughts on why some properties are better than others.

Julia also explains why she no longer makes a move without the help of a buyer’s agent, why working with a strong team of specialists is extremely important and discloses her long-term property ambitions.

If you like this episode, show your support by rating us or leaving a review on iTunes (The Smart Property Investment Show) and by following Smart Property Investment on social media: FacebookTwitter and LinkedIn.

If you have any questions about what you heard today, any topics of interest you have in mind, or if you’d like to lend your voice to the show, email [email protected] for more insights!

RELATED AREAS OF INTEREST:

Why is Australian property so unaffordable?
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Going global
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AREAS MENTIONED:

Eagleby
Charters Towers
Townsville
Brisbane
Paddington
Sydney
Orange
Melbourne 
Glen Iris
Bondi

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How a move to Hong Kong impacted Julia’s Australian property goals
object(stdClass)#1215 (52) {
  ["id"]=>
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  ["title"]=>
  string(88) "‘Common’ referrer practice of being paid on both sides of the fence coming to an end"
  ["alias"]=>
  string(82) "common-referrer-practice-of-being-paid-on-both-sides-of-the-fence-coming-to-an-end"
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  string(246) "

The practice of property investment firms sharing undisclosed kickbacks among the supply chain involved in development sales will be outlawed in NSW on 1 July this year under the Real Estate Reform being handed down by regulators in NSW.

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Property commentator and valuer, Suburbanite’s Anna Porter, said the reform will address conflicts of interest.

She said they arise when a mortgage broker, accountant or financial planner receives part of the commission from the property firm, who receive their fees from the developer or seller.

“This puts the broker into a position by which they are being paid on both sides of the fence,” she said.

“Until now this has been a grey area and there was nothing stopping this practice.” 

Ms Porter said this has been a common practice in the industry.

"Some well-known mortgage broking firms openly admit to receiving $5,000–$10,000 per referral in their pocket.”

She also said this process has been going on for decades.

"Property investment firms commonly pass some of their commission on to the mortgage broker, accountant or financial planner as a reward to them for passing on the referral. This means that many brokers or financial service providers are making significant amounts of money just to refer on to a property firm, often totalling hundreds of thousands of dollars a year," Anna Porter said.

Ms Porter said the Property, Stock and Business Agents Amendment (Property Industry Reform) Bill 2017 will be in force from July this year, and will prohibit this practice unless the broker or referring partner also holds a real estate industry license.

"Under the new laws, if the broker takes a referral fee from the property firm, they will have to be a licensed real estate agent and also hold a corporation’s license,” she said. 

“Subsequently, every transaction that they receive a referral fee from, they will be putting their license up against the transaction and taking full liability for the conduct, practices and outcome of that transaction, even if they have little to do with the transaction; they are a party to it financially and therefore take as much risk as everyone else in the transaction.”

Mr Porter said where a referrer holds a real estate license, and receives a part of the sale commission, they may find themselves in breach of the ethical requirements under the act.

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‘Common’ referrer practice of being paid on both sides of the fence coming to an end

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