Here at the Power of Property Investment, all members of our team are active property investors, so as you can see we definitely practice what we preach.
- Owned home + 3 investment properties before entering the property investment field
- Purchased a further 3 properties since then
- Planning to buy and renovate in future
- Keen supporter of Operation Flinders Foundation
How Michael Started
It was Robert Kiyosaki’s personal finance classic ‘Rich Dad, Poor Dad’ that first caught Michael’s interest and got him started in researching property and investment. He bought his first home at age 19, and his first investment property at age 23. By the time he entered the property investment field as a professional, Michael already owned his own home, as well as a further three investment properties, two of which he had renovated himself.
Michael has worked with many investors since he first joined us back in 2012. But there is one couple that still stands out – Julia & Bruce.
“A few years back, Julia suddenly experienced some major health challenges. She recovered, but she realised she had been lucky to pull through. It was also a big moment for her realising that they weren’t prepared financially – they didn’t have enough for retirement.
“After her recovery Julia called me and asked if we could catch up the following week. They were keen to buy an investment property, but very nervous. Now, a few years on, they’ve just settled their 5th property! While they are both professionals, earning a decent income, even with the five properties, Julia says they haven’t noticed any real difference in their lifestyle – they can service their debt comfortably. I think now that they’ve come through the other end, they feel like they’ve been looked after – I held their hands through each step of the process to really give them the confidence.
“I think it helps with confidence if you’re investing too. Julia and Bruce bought in Golf Links Estate, a development that I personally invested in as well for my family trust. I think that when you have a vested interest as well in a property, people have the confidence to follow along as well.”
Michael’s Investment Plan
Since 2012, Michael purchased three properties in total, Golf Links in Queensland, along with a further two properties in Adelaide. His next two purchases are also likely to be new properties – a townhouse in Queensland and then perhaps an apartment in Melbourne.
“Although I have renovated properties in the past – I still own all the properties I’ve purchased – I haven’t sold any. For me I’ve definitely got my 15-20 year hat on. It’s a long term strategy.”
Making A Difference
Michael has never been one to shy away from a challenge and for the last three years he has been taking on a huge one – an epic 700km bike ride from Adelaide to a remote station in the Flinders ranges to raise funds for Operation Flinders Foundation which is a not-for-profit that supports youth at-risk by offering a life-changing eight-day adventure program trekking through the far northern Flinders Range. This great cause helps young people become resilient and prepares them to overcome whatever challenges they face in their life.
“I just think it’s such a great charity to be involved with. It’s entirely run by volunteers apart from a handful of paid people within the whole organisation. There’s a lot of ex army or police who give up their time to get involved. There’s just so many stories about kids whose lives have been turned around after the program. They have a very, very high success rate, but are very, very low on funds.
“When I was growing up – we didn’t have a lot of money. My mum worked as hard as she could but we didn’t have a lot, so I kind of get where those kids are coming from. Now I have four kids of my own and I feel lucky about the life I’ve been able to create for my kids. They appreciate what they’ve got but they’ve never had to ‘battle’ or struggle in their lives, so hopefully this helps to set a good example for them.”
“I feel grateful about the kind of life I have been able to create for my kids through investing – and that’s great. But it’s good to be able to give back, and to set a good example for my kids.”
Michael’s Property Investment Tips
- It really is important to build your team and your network. Although I think I’m a pretty important piece of the puzzle, I think you need to have a good money man – whether it’s your bank manager or broker. I tend to lean towards an out-and-out broker, because a good one is worth their weight in gold. Especially if you find someone who is investing as well. The guy I deal with down here, I see him as an educator – you learn and gain confidence as well.
- Stick to your own plan, goals are important – don’t let other people sway you. There’ s no point following people who haven’t done it before. Even in my own experience I’ve had family members say, ‘Geez I wouldn’t be buying that now.’ For example, I bought one of my renovators during the GFC – which went against what most people were doing. But I thought the opposite way: there was no one else buying so I probably got it $30-$40K under what it should have gone for. If your aunty or uncle is an investor, then by all means listen to what they have to say, but if they’re not, I wouldn’t even consider it – but that’s just my opinion!
- It’s better to start as early as possible. Unfortunately I’ve sat with too many 40 / 50 year olds who are really panicking about their future, because they just haven’t saved enough. My daughter has just turned 18 and has just started employment. I’m encouraging her to put a bit away every week so that when she’s ready, I can help find her a property. Lots of people can’t get their head around having multiple properties, but I always say – let’s get one put away first. The second can come later. It does compound on itself over time.
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