A property investor who bought his first two-bedroom unit at the age of 18 after saving up for a deposit on a $26,000-a-month McDonald’s salary. year, has bought a further 12 homes in just six months.
Eddie Dilleen, from Mt Druitt in western Sydney, has an impressive portfolio of 52 investment properties valued at $25 million.
While inflation continues to rise, the 31-year-old believes it is still possible for first home buyers to enter the market with the right mindset and strategy.
The Reserve Bank of Australia raised the cash rate by 0.25 percentage points on Tuesday, taking it to a nine-year high of 2.6 percent.
An increase in interest rates means that buyers have less borrowing capacity and causes an increase in both mortgage and rental payments.
Eddie Dilleen (pictured left), from Mt Druitt in western Sydney, has an impressive portfolio of 52 investment properties valued at $25 million.
In the last six months alone, he has bought 12 homes around Australia in ‘high growth’ suburbs
The investor has just written his first book, 30 Properties Before 30, which shares his tips and tricks for investing in property (pictured next to his book)
Sir. Dilleen told FEMAIL that the three key features he looks for in a property are a high rate of return (income yield), capital growth and ensuring the price is below market value.
“Anyone can invest in property, but you have to consider your goals and think long term,” he said.
When choosing his next investment, Mr Dilleen never limits himself to one state and instead looks for opportunities across Australia.
Suburbs he has recently invested in include North Lakes in Queensland ($550,000), Slacks Creek in Queensland ($155,000), Greenacre in New South Wales ($1.1 million) and Elizabeth Park in South Australia ($750,000).
Sir. Dilleen said his ultimate goal was to help as many Australians as possible get into the property market faster and pass on his investment knowledge.
What areas has Eddie invested in?
North Lakes, QLD – $550K property
Slacks Creek, QLD – $155K property
Greenacre, NSW – 1.1 million USD property
Elizabeth Park, SA – $750,000 property
Redbank Plains, QLD – $510K property
Karalee, QLD – $670,000 property
Beenleigh, QLD – $700,000 property
Sir. Dilleen said now is the best time to take action and suggests putting down a small deposit, such as five or 10 percent, to get into the market faster.
“By the time you save a 20 per cent deposit, prices may have already gone up further,” he said.
Sir. Dilleen said his buying strategy hasn’t changed either — he’s continued to buy properties with high rental yields between five and nine percent that have “good capital growth” in metro regions and always buy below market value.
“Buyers should act now as when interest rates start to fall in the next few years, there will be another property boom. Always invest and think long term too,” he said.
‘It’s a great time to buy – when most people are scared, you get the best deals.’
While inflation continues to rise in Australia, the 31-year-old believes it is still possible for first home buyers to enter the market with the right mindset and strategy
Sir. Dilleen said he is not crippled by mortgage stress, and he does not fear debt.
“Debt is how money is created. Smart people use debt to create massive amounts of wealth. The most successful people in the world use good debt-deductible debt to achieve their goals, but unfortunately that’s not taught in schools,” he said.
‘I definitely believe that fear is holding many Australians back when it comes to property, as the average person has not learned the knowledge that when you buy an investment property, debts and expenses are all deductible.’
Of his 52 properties, 25 have seen their rent increase by $100 a week in the past six months – bringing in $2,500 in passive income.
Sir. Dilleen also mentioned some of the ‘hottest’ suburbs at the moment, including Glenelg and Elizabeth Park in South Australia, and the Ipswich, Logan and Brisbane council regions in south-east Queensland.
Sir. Dilleen believes you don’t need to earn six figures to enter the real estate market.
When he bought his first four properties, Mr Dilleen earned $50,000 a year and bought four more for a salary of $65,000 in 2016.
“It’s about understanding how the banks lend you money – having a high rate of return means you can continue to borrow,” he said.
‘Start small and get in as fast as you can.’
Sir. Dilleen also suggested buying existing properties rather than new construction, which are often on small blocks of land.
He also encourages ‘rentvesting’ – a tactic where buyers rent a property where they want to live and buy an investment property in a suburb they can afford.
Sir. Dilleen grew up in a housing commission home and became interested in real estate when he started working at McDonald’s at 14.
Based on conversations with colleagues and others, he quickly realized that buying into real estate was the perfect strategy for building wealth.
“From humble beginnings, I grew up in a rough neighborhood and no one in my family owned a home,” he said.
‘Mum struggled to put food on the table, we had to buy used clothes from Salvos, it was very hard financially.
‘I remember when I was 12 thinking ‘this is something’ and wishing things were different… I wanted to break out of the cycle.’
The 31-year-old bought a two-bedroom Ipswich villa (pictured) for $133,000 in May 2020
He previously splashed out on an $875,000 property in Sydney for his mother (pictured)
Sir. Dilleen wanted to quickly buy several investment properties and in the long run be able to live off the rental income.
Instead of following the “old school mentality” of paying off the original loan first, he decided to take advantage of the capital gains and bought his second property at 21.
“I realized there’s another way instead of paying off one property — it’s about looking at the long-term payoff,” he said.
Sir. Dilleen explained that if he focused on paying off the loan on the first property quickly, he would be left with the income from a single investment – not enough to live on.
‘It’s about the scalability – instead of paying it off, why not use the funds to buy more investment properties?’ he said.
‘For example, instead of putting $30,000 a year into the investment, it could be used to buy another property.’
Sir. Dilleen has just written her first book 30 properties before 30who shares his tips and tricks for investing in property.
Some of Mr Dilleen’s purchases during Covid include a $437,000 duplex in Brisbane (pictured)
What to consider when buying an investment property:
Consider your long-term goals
Start small and get in as soon as possible
Buy a property with a high return
Buy below market value at a discounted price by looking for those that will sell quickly
Don’t focus on paying off the loan quickly – use any extra cash to buy more properties
Be realistic about your finances and talk to an expert for help