After building a 13-property portfolio — what now?

According to him: “[For] the next 10 years or seven years ... I'll wait for the cycle to run ... I will [probably] sell some of it ... Then, I will reduce a debt.”

“Hopefully, I will be generating the income that will be good enough, passively, so that I can do what I want to do … [like] practicing martial arts, doing more fishing, enjoying life.

“I believe that, yes, everyone should work hard, but at the same time, you shouldn't lose your value of life—what makes you happy,” he added.

William shares how he has grown as a property investor exposed to two different attitudes towards creating wealth through real estate: 

How do you approach property investment now?

William Leung: A typical Chinese with [a] portfolio ... would probably say, "Oh, now is the time to aim for 20 [properties]. Now is the time [to] hit it bigger." I'm more towards the Aussie way now. Now is the time to say, "Let's enjoy life while [we] can. Let’s catch some fish while [we] can."

What’s the Chinese attitude towards retirement?

William Leung: Really strict … [It] is all about making [the] most of it now.

Back in the earlier days, the older generation, they've gone through war … they've gone through poverty, they've gone through all that. They have to work hard, they have to struggle just to make ends meet … When you're in Hong Kong, if you live in Hong Kong, don't expect to get any handout from the government.

Because of all the hard work that Chinese have done over the period, the second generation of people, they enjoy the money side, they enjoy the material side, so that they can actually literally get whatever they want. They don't have that toughness, they don't have that … [will to work hard] … They just expect something to be right now. Especially with technology nowadays, you can literally get any information, whatever you want.

Would you say you’re caught in the middle of the ‘Chinese way’ and the ‘Aussie way’?

William Leung: I'm sort of caught up half in the middle because we moved to Australia … I'm conscious of the past [but I’ve also got a foot in the now, towards the future].

What are the guiding principles that you would take from your parent’s generation and the new generation?

William Leung: [It] is all about that hard work. It's all about being patient, have the persistence. If you can't do it straight away, you've got to keep doing it. [From] the newer generation, you look at the information, you look at education.

If you combine both—if you have persistence, if you have hard work, you dedicate to what you believe in, at the same time, you use the modern technology, you use the modern information provided, I wouldn't say it's hard to achieve the portfolio that I've got.

Do you consider yourself successful now?

William Leung: I have set the goals, 10 years ago, [about] what I want to do. I have achieved it. [But] it's not a success yet ... I want to retire when I'm 50. How do I retire when I'm 50 on my own terms? I have to get enough properties. I have achieved the first part, [so] now I'm waiting for the second part.

Time, hopefully, is on my side. Hopefully, things go right according to the plans, then ... when I'm 50, I should be able to do what I want to do.

Can you explain more of these “stages” you speak of?

William Leung: First stage is to accumulate, [the] second stage is just to cultivate … [then] let time do its magic.

What can you do better as a property investor?

William Leung: I'm restricted [by] my work. A lot of times, I can't have the time [for my portfolio] … I still need this income even though my portfolio is pretty much neutral.

[I also] need to make sure [I] have enough buffer. It's a changing environment ... I need to be more educated because a lot of the properties are not in Sydney ... For me to engage other tradies to do the work, I need to make sure I understand all these works. I may have to do a bit more studies in terms of actual physical building.

In terms of passive income, do you have a specific number in mind?

William Leung: $80,000 … You can ask for more, but that then means that you have to do more. In Australia, if I'm debt-free, if all the loans are covered by themselves, $80,000 is a lot of money for me to spend.

It's [all about] the lifestyle. You choose what lifestyle you like to be in then you set yourself that target [and] you work towards that target … You just look at the expenses of what you need. Yes, you can live a better lifestyle, but what is better? How do you quantify better?

What do you like most about property investment?

William Leung: It's an asset you can see, you can touch, you can feel … You can buy it … [and] time will help you to smoothen out some of the mistakes that you've done. Also, time gives you the advantage … [Property] will appreciate in time.

What is your top three advice for budding property investors?

William Leung: If your mindset is not correct, then you'll get distracted along the way. Property investment is long-term. It takes 20 years, at least, if not 30, depending on the property cycle. In 30 years' time, things change, people change ... Number two is education ... If you just rely on others, well, good luck ... Number three is 'Just don't be [stressed]' ...  A lot of times, you want to be in control but you're not in control. With time, [you always need to have] the patience.

Tune in to William Leung’s episode on The Smart Property Investment Show to know more about the Hong Kong and Chinese mindsets on investing and debt, the importance of goal setting and cycles, and why property investors should learn to love numbers.