Case Study: Marcus

We sat down with Marcus and asked him a few questions on his experience, challenges, and how he overcame them.

I am a keen property investor and intend to retire on passive income from my property portfolio. I bought my first property in 2012 which was a 1 bed apartment in Neutral Bay NSW with a deposit saved from working at KFC during school, a NSW $7,000 grant, and using the First Home Savers Account at the time.

With the significant rise in property values, I used the equity in that apartment to purchase 3 investment properties in 2016, all positively geared. With lending requirements tightening, I was unable to borrow more regardless of being able to afford it, until I approached loans.com.au and in 2018 I bought another property, and another in 2020. In my partner’s name we bought an O/O in 2019, and we just knocked down the cottage and are building our dream house.

• Going against the naysayers regarding my property purchase choices - I base purchases off metrics such as low vacancy, yield and amenities, and I also try to find affordable properties to buy across states lines, even though some say I am foolish to purchase a property I haven't personally seen.
• Finding funding for property purchases - having a HECS debt significantly reduces my borrowing capacity.
• In the current environment it is very difficult to find affordable and appropriate properties for my investment strategy.
• Living frugally and living in cheap rentals to ensure we could save for deposits - until buying our O/O we elected to live in some very...unusual places due to them being cheap, for example most still having outhouses, and may be falling apart. It was challenging to make such sacrifices but it’s been well worth it.
• Buying a less than ideal property. It is all a learning experience, and I wouldn't change a thing with what I have learnt, but inevitably you will buy a poor performing property along the way.
• Still factoring in life enjoyment - learning not make all decisions based on financial benefit. We wouldn't be building our house now were it purely for economic reasons (fiscally in Sydney it's usually best to "rent-vest" - what we did until buying the current).

“I found loans.com.au to be very helpful and prompt with any query, and the overall process.”

• You should speak to those who have accomplished what you want to achieve instead of listening to naysayers. Everyone wants to give advice, regardless of whether they are qualified or not.
• I got a lot of advice from YouTube and from fellow millennials investing in multiple properties.
• Don't be afraid to start over/don't become emotionally attached to an investment property - I am currently in the process of selling my Coonamble property as it is not performing as well as desired to free up borrowing capacity and capital.
• Do your research and shop around. My first few properties were with Commonwealth Bank, but when I approached loans.com.au and they considered my situation more holistically and allowed me to purchased my two most recent properties, which allowed me to continue my property portfolio.