Many Australians would like to invest in
property for wealth creation purposes and future financial security,
but juggling the expenses of a mortgage and kids can make it seem
impossible.
Due to popular demand, Australian Property Investor has published
a special report in its July magazine explaining how it can be done,
including three case studies of families who openly share their property
investing experiences and reveal their secrets to success.
The Haskins family: four kids, a mortgage, one income
Ron and Lydia Haskins of Smithfield Plains (SA) have four children,
a mortgage and just one income of about $52,000 per annum. They also
own two investment properties.
“We’ve always had a single income so we had to invest
according to what we could afford. If we had a second income we wouldn’t
know what to do with ourselves,” Ron tells API.
For the Haskins, the key to investing has been starting off small
and very careful budgeting.
“We wouldn’t survive one month if I didn’t carefully
work out our expenditures and incomes well in advance,” reveals
Ron.
Richard Perin: single father of two
Richard Perin, a single dad raising two girls in Campbelltown (NSW),
used careful saving and share investment to ratchet his way into his
first property investment last year, even though he doesn’t
own his own home.
Thanks to some canny negotiating, he paid $211,500 for a house that
had been advertised at $245,000. Now that Richard has his first investment
property, he’s planning to buy another the same way.
“I want to leverage up another $20,000 worth, so I can go in
again,” he says.
The Tinworths: two kids, variable income – eight units!
Jenny and Steve Tinworth of Somersby (NSW) earn a variable income
averaging out at about $50,000 a year. They also own two blocks of
four units each in Queensland.
How do they do it? Well, their properties put money back in their
pockets thanks to their focus on investing in regional cities.
“Our income was low (so) we had to find cash flow positive
properties, which is why you buy in these cities. We worked very hard
to find them,” says Jenny.
Their investing prowess is also rubbing off on their sons.
“Our eldest, Kyle, is five and regularly talks with his toys
about their properties, how their renovations are going. He also likes
to drive around the neighbourhood with us, picking out houses that
we can ‘knock down and rebuild’,” reveals Jenny.
You can do it!
API editor Eynas Brodie says these families’ stories should
provide inspiration to would-be investors around the country.
“These families are proof positive that with sensible budgeting
and considered investing, anyone can get into the property market,
even if they have to juggle the day-to-day costs of raising a family
and paying off a mortgage.
“We can all find excuses why we’re not investing but
many times they’re just that – excuses. The investors
API has spoken to show us how to stop making excuses and take action
today,” she says.
