Many people living in Queensland believe purchasing property to be unachievable for young buyers. But, becoming an early investor and buying property is more achievable than you think. Here is an example of a young early investor that is on his way toward purchasing his third investment property. Read about his strategy, goals and his journey to achieving early investor success.
CASE STUDY:
- Brad (36 years old)
- Owner Occupier & Experienced Property Investor
- Currently in the process of purchasing his third property investment.
MRKTS: Tell us how you began your journey into property ownership?
BRAD: I purchased my very first property when I was 26. Really young according to most people. But, I knew that owning my own home was what I wanted to do.
I was lucky I guess, I had a great job that paid well, but I still had to seriously save and while all of my friends were traveling and spending I was working and saving. I have absolutely no regrets.
I was able to become an owner-occupier and start investing in my future early. Purchasing my own home ten years ago, allowed me to use the equity to purchase my second investment property five years ago. And today, with the combined equity of those two properties I am looking at purchasing a third.
MRKTS: What type of property was your second investment?
BRAD: I was originally planning to invest in another residential property as my second investment choice. Residential was what I knew and it felt like a safe choice.
After getting some advice from a trusted real estate agent and some experienced family members that have previously invested in property, I pointed in the direction of industrial property. I purchased a relatively small sized factory in the outskirts of Brisbane. It has been one of the best decisions I’ve made.
I almost wish my first investment had been industrial. I have had no vacancy issues with long term tenants that pay on time, and there is very little upkeep needed to the property. It has been a really low cost, easy to manage investment choice. Plus, I feel good knowing that I have spread my investments across different types of property and minimised my risk that way.
MRKTS: What type of property will your third investment be?
BRAD: I’m still drawn to industrial. It has been a really lucrative choice. However, I’m not disregarding residential as it too has been a good decision.
I’m interested in commercial because again I like the idea of a diverse investment portfolio as a way to minimise my risk, but I will have to do quite a bit more research if that is the direction I choose to invest in. I think at the end of the day, it will really come down to what looks like the best deal.
I am keeping my options open, and I am not disregarding any opportunity. If I find a property in the right location for the right price that is what matters most.
It’s early days yet, first I have to establish a budget, narrow down the type of investment I want and then get started shortlisting a few properties. I’m always seeking professional qualified advice and speaking to everyone I can in the industry about what’s new.
MRKTS: What advice would you give to other early investors looking to buy a property?
BRAD: The best decision I have ever made was getting into property ownership as soon as possible. Some of the best advice I’ve ever received was to not wait until I could afford the property of my dreams, but by investing now in what I could afford I would be able to achieve that dream property sooner than I ever thought possible. It was absolutely true advice.
My first investment home was a modest one-bedroom unit. It wasn’t huge, it didn’t break the bank, but that investment has opened so many doors for me and allowed me to achieve goals at 36 I thought I wouldn’t reach until my 50s.
The advice I give to everyone that asks me about investing in property is to buy now, don’t wait. If you invest now, in those however many years that you were thinking about continuing to save to buy a bigger home you will probably have doubled that number.
