Despite having troubles in the first few months of his wealth-creation journey, investor Luke Moroney strived and thrived through multiple market cycles and eventually built a 30-property portfolio in less than two decades. Find out how he weathered the storms and maximised his investment returns.
Mr Moroney’s first investment property, bought when he was only 24 years old and armed with just the slightest knowledge and skills relevant to property investment, wasn’t as successful as he expected.
Having purchased an asset in Sydney at the peak of the market, the investor wasn’t able to see any significant growth for almost 10 years. On top of that, he landed ‘horror’ tenants after he opted to manage the asset on his own.
While some budding investors would have taken their losses and gone out of the market without looking back, Mr Moroney decided to stay and commit himself to a long-standing ‘property cliché’.
According to the investor: “I try not to think about those quick wins all the time. Things that come good often come with patience and hard work. It was all about hearing those probably cliches from the past—just be patient with it and, over time, property will grow.”
Over time, he has naturally adapted several strategies to continuously grow his portfolio, including chasing both high-yield properties and high-growth properties and minimising risk through consistent mortgage assessment. However, the lessons from his first investments remain: Educate yourself, act towards your goals and practice patience.
One of the things that motivated Mr Moroney to continue his investment journey is his engagement with property experts and professionals, whose experiences and expertise helped him get familiar with the ins and outs of wealth-creation through real estate assets.
While it means additional costs for investors, the value that they can add to the portfolio will definitely make them worth their weight in gold.
Doing it by himself during the first few months of his investment journey has cost him a lot of money, which has significantly delayed his wealth-creation. Moving forward, he made it a point to have the guidance of professionals to be able to make smart financial decisions.
He said: “There's a lot of money and a lot of debt involved. You really want to get experts to help you along the way. Having the experts around gives you that peace of mind that allows you to get a good night's sleep, that allows you to make good decisions and grow.
“They’re a good sounding board. If you're questioning things in your own head, you have someone to call—that's the beauty of having someone by your side all the way through the journey,” Mr Moroney added.
There will be a lot to learn about property investment, whether through self-education or mentorship, but the key to being closer to your goals is simply taking action.
Mr Moroney reminded his fellow investors that it’s not necessary to learn everything there is to know about the venture. As long as you’re financially ready and the decisions you are going to make are grounded on research and due diligence, you’re as good to go as you will ever be.
“If you don't do anything, you don't go anywhere,” Mr Moroney highlighted.
However, you need to balance your readiness to take action with a willingness to wait for results.
After all, property investment is a long-term commitment and, in most cases, the simple secret to success is simply maintaining realistic expectations and ultimately having the patience to see through multiple market cycles.
The investor said: “I think that's where some property investors get it wrong—sometimes markets don't move in three months, or six months or 12 months, yet people are expecting to make money overnight. We need to have patience along the way.”
“Just think about the learnings that you can take from your experiences. Sometimes, our struggles are our best points in our time because it’s when we learn so much. I don't think there's a property investor out there that hasn't had a bad story. Even the experts who t have been doing it for 10, 20, 30 years have all got a horror story.
“People don’t need to be so fearful of those pain points or the struggles. We need to embrace them,” he concluded.
Tune in to Mr Moroney’s episode on The Smart Property Investment Show to know more about the triumphs and challenges in the 16-year investment journey that allowed him to create a 30-property portfolio.