A landlord with 108 properties has a message for tenants: the country needs more people like him and he is part of the solution to the housing crisis.
Sam Gordon, 34, built an investment empire worth an estimated $48 million after 15 years of real estate activity in Australia.
A recent clip shared on his social media sparked a furor when employees at his investment buying firm revealed the size of their property portfolios while on a luxury yacht for their Christmas party.
Viewers criticized partygoers, saying they were out of touch and “the only reason Australia is going through a rental crisis”.
But Gordon told Daily Mail Australia that many Australians don’t understand the work it took to get to his position.
“There are some people who have been hugely inspired (by the party video) and then other people who want to throw stones and try to knock you down,” he said.
“People see the final image now and, I’ve done very well in 15 years, but I’ve been doing this for almost half the time I’ve been alive.
“I think people just need to realize that it is literally accessible for anyone to do it (invest in property).”
Investor Sam Gordon (above) owns 108 properties worth an estimated $48 million and believes Australia needs more people like him.
The 34-year-old said investors like him were not part of Australia’s property crisis, but part of the solution.
He argued that the Hawke government’s shift to favor private acquisitions over government-owned public housing meant investors had had to offset the rental market.
“If it weren’t for private investors like me, the government wouldn’t be able to afford to supply all the rental properties Australians need,” Mr Gordon said.
‘We are filling a void that the government cannot and taking pressure off the public housing system.
“The Australian government owns less than one per cent of properties in Australia, and 30 per cent of all properties are rental properties.”
In the 1970s and 1980s, public housing made up around 10 percent of residential housing built, but in the last decade it has barely touched three percent.
“If someone is willing to put in the work and go down the path of building a portfolio, that’s literally what the government wants people to do to replace their own income, or do it as close to it as possible, or even closer to it,” said Mr. Gordon.
“Then when they reach retirement, they won’t be dependent on the government for the pension.”
Sam Gordon has built an expansive empire from humble beginnings in regional New South Wales
Mr. Gordon’s portfolio includes decommissioned public housing and commercial properties that he has renovated and put back on the market.
“I buy a lot of things that almost 95 percent of people couldn’t buy, and 99 percent of people wouldn’t buy, and I do a lot of renovations (on properties) to get them back,” Gordon said.
‘I bought dilapidated, deteriorated and uninhabitable (houses) directly from the banks, as if they were foreclosures.
‘And then we renovate it and bring it up to standard, and then many times we build a secondary home, which is actually additional rental stock on the market.
‘The simple fact is that we’re obviously not going to do this for free, it’s not a charity.
“We do it as a business, but we also provide services in that sense.”
Many have criticized the country’s move towards privatization of the housing stock, with detractors arguing that the discounts provided by social housing are a lifeline for those in urgent need of housing.
The gap between government-subsidized rent and the private market stands at around $15,000 per rental home per year, according to the most recent estimates.
The Albanian government has been called on to provide more social and affordable housing to Australians in the current inflationary market.
However, when it comes to personal investments, Gordon said he did not believe in limiting Australians’ investments and encouraged investors to take advantage of current market conditions.
‘I don’t agree 100 percent with limiting people in what they are willing and able to do (to get ahead).
‘It’s open and available to anyone, but it’s a sacrifice. Is everyone willing to make the same amount of sacrifice? One percent of the people will achieve what 99 percent of the people will not work to achieve.
“I think people need to realize that literally anyone can do it if they’re willing to learn how to do it right.”
When he was 19, Gordon invested $30,000 of the savings he had built up for a Toyota Supra into his first investment property in Wollongong after his father suggested it.
He said he then researched investment information and didn’t worry about a college education, but instead pursued his dream of owning property.
He has since grown his portfolio to an estimated value of $48 million and has also founded his investors’ buyers agency and a related podcast, Australian Property Scout.