Victor Kumar and his wife started their journey more than a decade ago right from the bottom—starting as migrants with only $4,500 combined savings with no idea about ‘bricks and mortar’—and they were able to make their way to the top by investing in education before shelling out money for any investment property across Australia.
For 10 years, the couple concentrated on buying properties in the same areas due to high demand, low cost, and other contributing factors. However, for their first few purchases, they admit that they had no clue as to what exactly they are aiming for.
“With our first three properties… we didn’t know what we were doing. We bumbled our way through it. Like any other investor, we invested close to home. We just happened to be in a good area. I got lucky in the initial stages then I educated myself,” Victor shared.
Knowing the possibility of creating wealth and ultimately the ability to afford financial freedom for themselves, as well as the risks that the venture may involve, he and his wife sought to educate themselves as best as they could.
Overall, they have spent around $80,000 on education—a price well worth it for the returns they are getting as successful investors in the business of creating wealth through property.
According to the couple, one of the most important lessons they learned during this time is the value of knowing the fundamentals of property investment.
“It all comes back to basic fundamentals. All the seminars, all the books teach the same fundamentals, they’re all just dressed up differently,” Victor said.
“We try and stay away from regional areas… from mining towns or areas that have got only one economical driver and we try and limit ourselves to within an hour’s travel distance to [the] CBD.
“Then, of course, you look at comparables of what’s brand new selling in that area, and within kilometers of that brand new developments, you buy older comparable properties with a differential of at least $100,000 between old and new. You can’t go wrong [with these]. It still holds true today.”
His advice to budding property investors is to utilise all resources that could increase your knowledge about property investment in any way, whether you choose seminars, books, online articles, or mentors.
Nowadays, those who want to start their property investment journey don’t even need to spend as much as Victor and his wife did, thanks to technological advances—an opportunity that everyone must take advantage of.
“At that time, when I started, obviously Google wasn’t prevalent. Now, I would say that you Google everything first. There’s a lot of free information out there, there’s a lot of YouTube videos out there that you can use. You do that first, but certainly, I’m a strong advocate for paying good information,” Victor said.
“The caveat of that is you got to take action after that. It’s nonsense being a seminar junkie because all you’re doing is getting hyped up and you’re hooked to the hype rather than the result.”
Tune in to Victor Kumar’s episode on The Smart Property Investment Show find out how hard work, perseverance, education, and a dogged never-give-up attitude set Victor Kumar on a path to success.