How property investors can deal with inevitable 'bad consequences of the game'
After building a 12-property portfolio within four years, Mitchell Burge still describes his first purchase as "a rush". While he definitely encountered some bad consequences in the business of creating wealth through property, he admits that property investment remains as one of the most rewarding things that he has ever done.
"Buying that house... [with] the Right Property Group negotiating it, meeting Ross from Aussie Home Loans, building a better relationship with you and Munzurul, our accountant and the whole team pulling together, it's really rewarding.... then to get the tenant in there and actually see the figures and everything come together—[how] the animal works," he told Smart Property Investment.
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"It's actually, at the end of the whole thing, it was paying me, and then within one year, that place went up $100,000."
Mitchell bought his principal place of residence back when he was 20, but it was only at 29 when he started building his property portfolio. However long his procrastination seemed to be, his diligence and dedication made it possible for him to achieve his goals more efficiently than most people.
As a businessman, he made sure to study everything he needed to know—from individual properties to wider markets—and once he had officially started his property investment journey, Mitchell never found any reason to stop.
"What closed it was, I didn't believe the figures, didn't think it was feasible. I'm a businessman, so I wanted to study them and I did... I saw the exact figures and went, ‘This is actually real. This isn't a joke.' Then I started doing more recon[naissance] and then that lead one thing to another," he said.
His advice to budding investors: Being successful in property investment is all about balance.
"If a property's paying you an income or breaking even, and they're going up, every property you're buying makes equity, you never need to stop," Mitchell explained.
"What we've done is we've set plans, very simple plans. Sometimes we'll buy... but it's got a low yield. It loses us a bit of money. But that block and its location strategically is going to be worth a lot of money. So it's going to be a money maker over time, [although] the yield doesn't break even.
"But then we've got some small units that we've paid as low as under, just under the $200,000 mark, which is so positively geared they make a lot of money. So every purchase we buy, we re-evaluate."
"The trick is we make sure that they all balance," he concluded.
Tune in to Mitchell Burge's episode in The Smart Property Investment Show to know more about his journey as a property investor and how he plans to acquire 10 properties in 10 years—or even more.
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