Building a 20-property portfolio: good markets to look into this 2018
Eight years after beginning his property investment journey, 26-year-old Eddie Dilleen has successfully built an 11-property portfolio and he isn’t planning to stop there.
The property investor aims to add more assets to his portfolio and reach the 20-property mark.
According to him: “[My borrowing capacity is] something I'm going to have to work towards. Certain things [that] I've done recently to 'cash flow' my portfolio has been to negotiate some specifics.”
“For example, save $10,000 [to] $15,000 here in interest. Also, when you have a portfolio … if you increase the rents by $30 each and you got 10, 11 [properties], it positives another $15,000, so you're switching around $30,000 worth of cash flow,” he explained further.
Future of the market
Eight years in the property investment game taught Eddie the ins and outs of the landscape—so much so that he’s actually been able to establish his own buyers' agency so he could share his experiences and expertise to budding investors. For this year, the property investor-turned-professional predicts that some of the biggest property markets in Australia, which have slowed down in 2017, will continue to plateau.
According to him: “You've got Sydney and Melbourne, the two leaders that are ... slowing a fair bit … It might some 5 per cent [to] 10 per cent fluctuations ... but I still lean towards [classifying] that as overall flat.”
“I don't see any crash coming ... It's a supply and demand game,” he added.
Eddie believes that there will more opportunities in Queensland where there are more lower-priced properties near the central business district.
He said: “There are amazing buys out there. High rental yields that aren't going to get you stuck with finance … Definitely, Queensland's still my number one.”
He’s also looking into Adelaide as a market with great potential for long-term growth, as well as Tasmania and Hobart which have been receiving a lot of publicity lately. Perth, on the other hand, might be on the decline this year.
His advice to property investors: Diversify your portfolio as much as you can.
“I wouldn't put all my eggs in one basket. Definitely, diversify, think outside the box, and don't limit yourself to just where you live,” Eddie concluded.
Tune in to Eddie Dilleen’s episode on The Smart Property Investment Show to know more about why he branched out into different markets around Australia instead of sticking to his backyard, as well as the unexpected setbacks he faced along the way.
More from this writer:
-
Why it’s still worth selling – even in lockdown
-
Over 200 Perth suburbs see winter price growth
-
Auction volumes on their way back up
-
Low interest rates drive record refinancing
-
Tassie’s own $20k HomeBuilder grant finds early success
-
Capital cities see stronger auction success
-
2020 vs 2021: How lockdowns have impacted the market