What are the must-have features for a property portfolio?

“The first thing is not overleveraging ourselves when building the portfolio, building it comfortably and buying when I can afford to,” Mr Haeri informed listeners.

“Everything I buy from now is going to have granny flat or subdivision potential and I’ll put the granny flat in or subdivide down the track for my exit strategy.”

The property investor highlighted the importance of growing his capital for an “exit strategy”, which in his case is retiring early.

“For the exit strategy I do need stuff with granny flat or subdivision potential to pay down the mortgage in 10-15 years instead as opposed to 30,” Mr Haeri continued.

Mr Haeri has a goal of having all the properties he needs to in order to retire by 35 years of age. This would require him to receive a passive income of around $100,000, he noted.

Mr Haeri highlighted the importance of compound interest by having enough in his portfolio by 35 and simply holding on to it.

“When I’m 40 I want to be working because I want to. I don’t want to be acquiring property after 40, I would like to have acquired them all by 35 and let time do its thing,” Mr Haeri said.

Host Phil Tarrant explained that property has always been a good performer and time is an important part of any property portfolio journey.

“If you buy correctly, it goes up. So, hopefully the properties in your portfolio go up,” Mr Tarrant put to Mr Haeri. 

The property investor noted the importance of buying the right type of properties to protect against financial shocks such as the COVID-19 pandemic. 

“I think it’s a matter of finding the right assets in the right suburbs even if the vacancy rates go up a little. If you buy the right assets, they are going to be the ones in demand,” Mr Haeri said

“However, I don’t have a passive income target because I love what I do now. Previously, I wanted to stop work as fast as I could because I am passionate about not trading my time for money.”