Millennials are increasingly being told buying a home in Sydney is a pipe dream but one 26-year-old local has bucked that trend with an impressive eight-house portfolio.
Tahmoor train driver Daniel Walsh has discovered the secret to successfully breaking into the housing market and now has $3 million worth of property.
Mr Walsh built his first investment property at age 19 and through a lot of overtime, hard work and saving he now has a healthy portfolio.
“My parents used to flip properties when I was young so I was exposed to renovating and property talk from age 10,” Mr Walsh said.
“I knew my parents had made money from property and I knew I wanted to make money too.
“I left school in year 10 and got an auto-electrical apprenticeship working with my dad where I made $240 a week for the first year.
“I knew I needed to boost my money so I saved a set amount of income each week.
“I wanted a house under my belt before I moved out of home.”
After working overtime at night, selling his $30,000 car and skydiving gear, Mr Walsh scraped together a $34,000 deposit.
He purchased a block of land in Thirlmere for $342,000 and built his first home before he was 20. Today the property is worth $600,000.
“I didn’t want to be an auto-electrician for the rest of my life so I thought that if I worked hard in the early days and established a foundation, that I would then be set up for retirement. I want to retire by the time I’m 40.
“I still wanted nice stuff, I had a nice car but I realised if I sacrificed for a few years then I could have those nice things later on. It was a short term sacrifice for long term gain.”
Mr Walsh caught the investment bug and one year later bought another house in Thirlmere where he spent hours each night and $5000 renovating the property.
When he wanted another slice of the property pie he went to apply for another mortgage only to be told his loans were cross-collateralised, which means one home was used as collateral for the other.
That meant the bank had more control over how Mr Walsh could use any additional equity for future investments.
He put his property buying on hold for a year and a half, saved, paid down debt and found a mortgage broker and mentor who had a sizeable property portfolio.
“I was then able to uncross the loans, I got the equity and went out and bought two more properties in Queensland within two months of each other,” Mr Walsh said.
He said he wanted to buy properties in different states to diversify his portfolio and to minimize the risk of changes in the property market.
In 2015 he bought another house in Queensland and one more in South Australia.
Last year he bought a house and block of land in Victoria and hopes to acquire another two by year’s end.
“I try to average one or two properties each year,” Mr Walsh said.
“My aim is to hit 10 properties by the end of the year so I can have $4 million worth of property next year.
“Then by the next year I want $5 million worth of property which means I will have a four per cent growth across the portfolio meaning I will get $200,000 in growth per year.”
Mr Walsh is a freight train driver and rents his Tahmoor home with his fiancee, who is a property manager.
The property mogul does have some advice for other shire millennials who want to break into the housing market.
“Don’t look in your backyard – invest somewhere you can afford and rent where you want to live,” Mr Walsh said.
“Also create a team that knows more than you including solicitors, pest inspectors, builders, a property manager and financial manager, who can help you execute your plan.”
Mr Walsh suggested young people seek advice from professionals’ YouTube, Facebook or Instagram accounts.
“Educate yourself and you can do that buy reading books or listening to podcasts.”
Mr Walsh owns his own buyer’s agency business, Your Property Your Wealth.
Details: yourpropertyyourwealth.com.au or contact Mr Walsh directly firstname.lastname@example.org.