Finance advice

How this property investor started creating wealth at 18

By Bianca Dabu
Investing, investor, creating wealth, investing at a young age, property investment, property market, real estate, property portfolio

Jack Henderson bought his first property—a two-bedder in CoogeeCoogee, NSW Coogee, WA worth $720,000—when he was 18 years old and fresh from his first job. Three years later, he’s well on his way to buying his third property and continue growing his property portfolio.

The young investor was only in Year 10 when he realised that he would much rather learn from experience than in the four walls of a classroom.

“School wasn't for me [because] I'm sort of a person that wants to learn from someone ... because I want to be where you are,” he said.

He went on to work in his father’s construction firm, and after a few years of saving money, he decided to put his savings into good use. Jack did his own research about property investment, got in touch with one of Australia’s leading property professional Chris Grey, and eventually jumped into the business of creating wealth through property.

According to him: “When I [came] across Chris Grey and see that he drives a Lamborghini, he's got the boat and stuff like that … [I told myself], ‘If he can do it, I can do it.’ "

Buying the first property

Like all investors at the beginning of their journey, Jack admits that it was hard to make the first purchase, especially as he was only relying on himself for decision-making. However, what he lacked in formal training, he made up for diligence and hard work.

He shared: “I sort of had a [certain] criteria ...I didn't at the start. I just used to walk in and go, ‘Oh, this tiny little two bedroom apartment's worth a million dollar, that's crazy.’ But, then as I went through more, I got [to have] a [specific] criteria.”

“I wish my one in Coogee had parking but it doesn't … What do you do about that? Might stunt growth in the future but there's not much you can do about it.

“Square metres ... I sort of had [for] criteria for that, [as well as] north-facing balconies—you pay premiums for that sort of stuff … Other than that, I just sort of walked through it. You know if it's good or … it's bad,” the property investor added.

For the most part, Jack trusts his instincts as much as he trusts his research, and it has gotten him into a good place as far as his property investment journey is concerned.

According to Jack: “You walk through a property and sort of know … [plus], I did [a] lot of research, too … If I went through a property on Saturday, I'd have my list of what I went through and then I'd go home and I'd look [at] realestate.com.”

“In the side door of my car, I had about 40 pamphlets in there and I'd get them out when I got home and I'd look through them all … [scribble on them to remember],” he added.

A 21-year-old’s place in the landscape

The fact that, at 21, Jack has already been in the property market for three years is a feat in itself, according to Right Property Group’s Steve Waters and Victor Kumar. Add his persistence and diligence to the equation and they believe that he’s off to finding success in the vast property investment landscape.

Steve said: “Forget the price point for a minute ... Just to be in at 18, without any real people holding your hand or [any formal] education, so to speak, I think that's such feat.”

“And ... to go again … for the third time up in Newcastle … It’s awesome,” the buyer’s agent added.

Smart Property Investment’s Phil Tarrant, who is an avid investor himself, knows all too well that being successful in the business of wealth-creation is all about gaining as much experience as you could and learning from them. After all, you can never know anything for sure until you actually make that first step.

He explained: “You don't know what you don't know so you start and then it's nice to reflect what you would do differently on it … The whole way through this process, you're [actually] becoming a better investor.”

“Everything's theoretical until you actually get in on it and you'll never learn as much as when you've got money out there,” Steve added.

While he has definitely already made mistakes throughout his journey, Jack plans to continue growing his portfolio and, eventually, taking his shot at being a property professional.

“[Looking back], when I was 18 ... I've been out with buyers’ agents and I had lunch with them and met all these awesome people in property and doing this podcast—I'd have never thought that would happen, [so] I want to keep buying, [I] want to keep doing stuff with my money,” 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:

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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)#1214 (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"
  ["introtext"]=>
  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.

" ["fulltext"]=> string(2238) "

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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