How this investor built a 9-property portfolio in 4 years

After a couple of years of preparation, Mr Paliwal finally took the leap and invested in a property located in Sydney.

To say that it was a winner in terms of income or return on investment would be a tough call, according to him, but it definitely got him in the right mindset to be able to continue growing wealth through real estate.

Mr Paliwal said: “I think it’s a winner in the sense that it made me go on to take a lot more action because I felt comfortable – adding one property didn't really change the world for me but it taught me that things happen when you take action.”

“That’s what really started the movement for me, from one property to the next. I think it is a success because it took me over that fear of learning the what-ifs and what could be, and allowed me to start saying, ‘Hey, I’ve made a move. What’s next?’”

Four years later, he now holds a nine-property portfolio, with residential properties in NSW, Queensland and Tasmania as well as a commercial property in Melbourne.

Portfolio management

Apart from the fear of inadvertently picking up a lemon, one of the initial fears that Mr Paliwal had in the beginning of his wealth-creation journey was around leverage.

“It sounded weird because I’m in a bank and we’re doing so many loans all the time and we’re supporting customers, but at the same time, you’re wondering if you’re going to take that on, what does it do to your lifestyle? You’re at a certain age, what do these changes do to your job? That was the first fear,” according to him.

However, as soon as he was in the property market, the budding investor quickly realised that the changes, both in terms of market movements and his personal life, are not as drastic as they seem.

In fact, his first few investments were ‘not doing as much as I thought it would’, which ultimately made him more confident to take further actions in order to grow his portfolio.

“I realised that today’s interest rates aren’t actually what the banks are pretending that you’re on when you go and take out a loan. That made me feel pretty comfortable.”

This mindset has helped him move forward into his wealth-creation journey despite the market fluctuations that have been evident in several markets across Australia, particularly in the capital cities.

With the credit environment tightening, most investors are struggling to decide which strategy to implement in order to continue holding and, eventually, growing their portfolio, but Mr Paliwal said that it all comes down to a long-term commitment.

He said: “For someone to say ‘no to property investment’, I think that’s a bit far fetched. I think there’s a lot happening that would make you question every decision you make, but if I take a step back and go, ‘Alright, why did I start investing in property?’, I’d realise, I have a goal to get passive income.”

As he changes his plans to fit the current state of the market and his personal life, Mr Paliwal makes it a point to ensure that it all comes down to the long-term goal that he has set at the beginning of his journey.

“Plans can change – how you get that goal changes – but the goal for me still remains. Every so often, there are changes happening in the market, and while I could debate about what works and what doesn’t work and why the number stack and why they don’t, my goal is not changing.”

“You didn’t go and buy the property to get cash flow immediately. You bought the property because you wanted to see long-term wealth creation... You bought it for what it could do for you… For wealth, for your family and that financial freedom,” the investor concluded.

Tune in to Arjun Paliwal’s episode on The Smart Property Investment Show to know more about building a multi-property portfolio in Australia.

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