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Many people in their twenties dream of investing in property but never take the plunge. However, 26-year-old Daniel Walsh has dedicated most of his time to learning about the market since 16, purchasing his first property four years later.
Now at 26, he has a seven-property strong portfolio worth $2.9 million. While he has no natural affinity to understanding the housing market, Mr Walsh said that he explored investment at an early age because of the stream of passive income that it provides and the financial freedom that it provides.
“I started as an auto-elec at 16 with my father. I was earning about $250 a week when I started. So, I decided that I would save my first deposit for a house. The first house that I bought and I settled, it was making me $100 a week, passive income. I thought to myself, well if I can do this on one house, why can’t I do this on 10 houses?" he said on the Smart Property Investment Show.
“If I can do this on 10 houses, it makes more money than I’m earning now. So, that’s pretty much the reason why I got into it — financial freedom, to be able to enjoy what I do and stop working or do part-time work, and then be able to get into more investing, helping other people invest.”
Daniel was initially attracted to the thought of financial freedom after he bought his first car at the age of 17.
According to the young investor: “When I was about 17, I bought a car that was worth about 30 grand. I sold that for $11,000 and I think it was that time that I realised that if I continue doing this, I’m going to have nothing. I pretty much sold that car, went out and bought a bomb for about $2,000. Then, for the next three to four years, I just saved really hard.”
“I just thought, I need to park all my money in assets. At the time, in the Sydney market, I was able to get 7 per cent plus yields, so that was pretty much the reasoning why I started because I could get passive income from day one, with the low interest rates,” he added.
His advice to budding investors: Don’t be afraid to start young.
Daniel believes that investing means making money in the long term, and beginning one’s journey at a young age will mean more promising yield in the future and, therefore, more financial freedom and stability.
A brave heart, some good advice and a lot of research are what made him stay engaged and get more interested in the property markets, six years after his first purchase.
“I just knew that if I invested young enough, over the long term I would make money. I have had mentors, yes. At the moment, I have my finance broker. I’ve been with him for about five years now and he’s taught me a fair bit ... I watch Sky Business Channel. I watch pretty much every property show there is and I’ve been doing that since about the age of 16. So, I pretty much don’t miss anything. (And I do) a lot of research,” he concluded.
Daniel’s story is the perfect shout out to all millennials: There is no such thing as “too young” in property investment. The more time and effort you give, the more benefits you will reap in the future — like most things in life. So what are you waiting for? Start you own journey now!
Tune in to Daniel Walsh’s episode in The Smart Property Investment Show to find out how he researches the market, balances his portfolio and manages his tax each fortnight, and why he believes that looking beyond one’s own backyard at different property markets could allow a budding investor the opportunity to begin their own investment journey.