Sydney couple builds $1.2 million real estate portfolio in just three months

A Sydney couple, who had to pay the price of upgrading their family home, have managed to create a property portfolio worth $1.2 million in just three months.

Six years ago, Amit Kumar and his wife Astha had bought a mansion for $610,000 in the Sydney suburb of Quakers Hill.

Despite saving hard and their family home rising in value to $780,000, the couple with two children, ages three and five, discovered that Sydney’s skyrocketing real estate market would make it impossible for them to start a new property in the city. to find.
They had discussed the idea of ​​buying other houses but were nervous.

“It was the fear of the unknown,” Kumar said. “You just don’t know what to do, you don’t want to overpay, you don’t want to buy the wrong place and then have it vacant for long periods and without tenants,” he told

“You don’t know where the growth will be and you don’t know what the projects are in certain areas and things like that.”

But the pair met a buying agent and took the plunge in April, owning two properties in that month alone.

The first was in Adelaide in the southern suburb of Christie Downs, a three-bedroom, two-bathroom home.

They bought it for $425,000 and it has already grown in value by about $60,000.

The second property was purchased in Toowoomba, Queensland – a three-bedroom house for $455,000, which has also increased in value by $50,000.

“We were very nervous, especially because they settled very close to each other … the settlement was two days apart,” he said.

“And what made things even more complicated was the Easter holidays and the Anzac Day long weekend, so it was all on short notice.

“I think at the time when elections were coming up, we didn’t know what the policy would be, we didn’t know what interest rates were doing and how it would affect us.”

But the gamble has paid off so far as Mr Kumar revealed that they had 20 rent applications for the Adelaide house before the open house was even held.

“So we had a very large number of applications to choose from and we managed to get more than we actually hoped to achieve in terms of rental,” he said.

“So when we bought the house we were told that $410 is a realistic expectation in terms of rent, but we ended up making $420.”

The Toowoomba house had already been rented out, but Mr Kumar said it was a significantly lower amount than the market price.

They were told they would get $450 for the place, but after the previous tenant left, it was only vacant for three days and then rented out for $470, he said.

Their latest purchase was in Bundaberg, a $387,000 home purchased in July that is expected to rent for $460.

All three properties were also bought undetected, Mr Kumar added, with rents covering their mortgages.

The couple paid $65,000 to $70,000 for each place including stamp duty, with a 12 percent sweet spot deposit recommended by their mortgage broker.

Mr Kumar, who works in sales, said the couple still plans to use their portfolio as a “stepping stone” to buying a bigger place in Sydney in the next 12 to 24 months, but that’s where it will be. don’t keep up.

The 39-year-old never thought it would be possible to build a real estate portfolio, but now the couple has set the goal of buying eight to 10 homes over the next five to seven years.

He advised others to get into the real estate market as soon as possible, adding people not to be influenced by the market, but instead focusing on the long-term goal of building value in their property.

“One of the things the buyers agent said to me and it just stuck with me is that the sooner you buy, the sooner you buy, the more time you allow for capital growth and timing isn’t as crucial as going to market alone” , he says.

“Because if you buy the right home for the right price, timing is not such an important factor.

“On all three properties he bought for me, we actually managed to get them all below market value, so what it means indirectly is that even now by the time we settle in, we’ve already have some equity.”

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