property tycoons

  1. bbm
    2,264 Posts.
    They also mentioned that one person has 1200 houses.

    My question is...why isn't this person in the BRW Rich 200?

    Why do they constantly keep on saying how easy it is and anyone can do it?....I think there's more to it than just saying your property portfolio is worth 10 million dollars. How much debt is involved?

    From Today Tonight

    Real estate riches

    REPORTER: Chris Simond
    BROADCAST DATE: June 26, 2003

    It seems everybody's entering the property market and hanging on as prices soar. But many are thinking beyond just buying a family home. They see the huge potential to invest, profit or even retire.

    While researching his book Ordinary Millionaires, psychologist Jim McKnight became fascinated by how many average Australians had become multi-millionaires buying property with other people's money.

    He decided to share their secrets.

    "I talked to one person who owned 600 houses. She said it was by no means unusual," he said.

    And she's right; in the past 20 years Michael Croft has bought 500 houses.

    His tip for property investment is to look for a house in a good location at a reasonable price and add value by renovating or subdividing it.

    He calls it the "worst-house-in-the-best-street syndrome".

    "Renovate and hold the good ones," he said.

    Two years ago Mr Croft paid $200,000 for a three-bedroom house with an adjoining flat in Canberra.

    A believer in minimal renovations, Mr Croft spent $11,000 on a paint job, carpeting and a kitchen fit-out and next month it's on the market for more than $700,000 - that's nearly a $500,000 profit.

    And he says anyone can do it with the right knowledge.

    Single mother-of-three Robyn Atkins seemingly had few good prospects, until she suddenly became another "ordinary millionaire".

    Starting with owning her own home, in the last four years she bought seven additional properties.

    "We did that basically learning how to use our own home for a line of credit," she said.

    And Ms Atkins is not stopping there; she wants 20 investment properties all with long-term tenants to pay the mortgages off for her.

    She says it really isn't difficult; you've just got to have faith.

    "You can go from nothing to something - from rags to riches. The choice is yours," she said.

    Another average millionaire, Jeff Whitfield's four investment properties have almost assured him financial independence, with their total value close to $2 million.

    Mr Whitfield's latest acquisition, a block of nine units, has already increased in value by 25 per cent since he bought it eight months ago.

    He says there is no real secret to his success: if you have equity to borrow against do your homework, study the market every week, check what's moving and at what price and when you're confident, be brave and jump in.

    "It just works so easy," he said.

    Meanwhile, Mr Croft bought the worst house in the best street for $273,000, knocked it down and built two homes that he sold for more than $400,000 each, making $300,000 in the deal.

    He too says there are no secrets other than hard work but suggests if you're worried about interest rates, fix them for five years.

    "Expect the best and prepare for the worst," he said.
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