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The Client
Nafiz Started his journey as a young professional. Living at home wanting to get his foot on the property ladder. Being based in Sydney his family naturally wanted him to use first homeowner benefits and try to find an affordable apartment in his local area. This was also all he could afford even in 2019 when prices were much cheaper than today due to his lower income and lower amount of savings.
We felt that this would not be an approach that would perform well. He was limiting his markets of choice by compromising, buying a unit instead of a house. Sadly, these are mistakes that many young professionals make as they are often guided by their family who are also limited in knowledge.
Our Strategy
Recognizing that this approach would limit his options and likely underperform, we recommended buying an affordable, high-yield property in Brisbane, identified through our data-driven analysis.
Nafiz opted to go against the grain and follow our advice by buying a property in another city site unseen. This particular property has now gone on to be his best performer. Displaying the importance of getting your first one right this property provided him with equity to fast-track his next purchase.
Nafiz didn’t just sit tight, waiting for his property to do all the heavy lifting he focused on growing his career and in turn he grew his earnings overtime by climbing up the corporate ladder, allowing him to service more debt for more properties.
He followed the formula adding foundational assets in major markets whilst diversifying his portfolio across the country too. We purchased his next asset in Adelaide. Taking him to another state and another major market. This asset also substantially outperformed the market. Allowing him to again with both purchases, have the equity to now make the third purchase. Making 3 purchases in 3 years is no small feat. That too on one income the whole time and in the younger years of life.
With this third purchase, we transitioned from foundation properties in major markets to momentum properties that were affordable in regional markets. Taking his portfolio to the final Queensland city of Townsville. Our data pointed out that the city had not seen growth for many many years and was about to start a new boom.
First purchase in Queensland has grown 80%
- Purchase Price: $418,500
- Purchase Date: 2019
- Estimated Valuation 2024: $750,000
Second purchase in Adelaide has grown 46%
- Purchase Price: $492,000
- Purchase Date: 2021
- Estimated Valuation 2024: $720,000
Third purchase in Queensland has grown 22%
- Purchase Price: $445,000
- Purchase Date: 2022
- Estimated Valuation 2024: $540,000
The Results and Future Plans
His third purchase has now gained almost $100,000 in equity in just over two years. Alongside the purchases, these assets are now setting him up for his fourth purchase with us. Which will be made in 2024. And his fifth purchase to be made in 2025. For the fourth and the fifth purchase Nafiz is now including his wife. Allowing for further servicing beyond the first three.
After they achieve the final two purchases by 2025, it would be six years of investing in total to set up their whole life ahead with 5 investments as we planned. This demonstrates the importance of using a tried and tested formula of pinpointing high-growth markets before they boom. It also shows the critical components of how we scaled the portfolio safely too: Diversity in markets by drivers, the location/state they are in to save on taxes, and affordability with well-placed yields. All tailored to the points in life (career/savings/income) Nafiz was at for each purchase. Nafiz remained a rentvestor through this whole journey after moving out of home. Demonstrating his sacrifice for his financial future.
Following the final stages of this plan Nafiz and his wife will then place all their focus, savings and earnings growth over the years ahead to eventually buy their home to live in. They know this will take time due to servicing used for these assets, but they aren’t in a rush as they know their future is set and secure.
We’ve since helped many of Nafiz close friends do the same. He remains a close client, friend and advocate of InvestorKit. Looking back he’s grateful he didn’t take the advice of many friends and family, instead he focussed on building a team of professionals around him from InvestorKit.