Father-of-two reveals how he built his $4.5 million property portfolio with just $60,000 and five simple rules – after moving to Australia 20 years ago when he was just 21 years old
- Migrant only had $1,800 to his name when he arrived in Australia
- Lakhwinder Singh now owns eight properties in four states
When Lakhwinder Singh arrived in Australia in 2004 as a 21-year-old student, he had only $1,800 to his name.
But in the two decades since, the father-of-two has built up a $4.5 million portfolio eight properties in four states – and he says anyone can do it.
While the average cost of a home in Australia was $881,000 at the end of 2022, Mr Singh said a potential investor could still get started with a $60,000 down payment if they buy in the right area.
He said there are five ‘data points’ to consider before buying a property to let, which will give the buyer more bang for their buck.
The first point is to buy a house with a significant plot of land, as that will be more attractive to renters.
When Lakhwinder Singh (pictured) arrived in Australia in 2004 as a 21-year-old student, he had only $1,800 to his name
Mr. Singh’s Five Rules for Buying Real Estate
1. Buy a large piece of land.
2. Buy near schools, shops and parks.
3. Look for “X Factor Traits” that stand out.
4. Don’t buy where there is a lack of supply because prices will be high.
5. Buy in areas with low rental vacancy rates.
The next point is buying a property that is “family friendly” such as being close to schools, shops and parks.
Third, he advises looking for “X-factor traits” that stand out, such as a divisible plot of land and side access.
His fourth point is to be aware of supply and demand issues. Mr Singh advises buyers to avoid properties where there is a lack of supply in the area as prices are likely to be higher.
Finally, he said investors should look at rental vacancy rates as an indicator of how quickly they can get tenants into a property and pay rent.
“The vacancy rate is a good indicator to help us understand how much inventory is on the market and how quickly our property will be let,” he said. news.com.au.
‘Vacancy below 1 percent means a major shortage of homes and less than 1 percent of rental homes are available for rent.’
Potential investors also need to be “very disciplined” in how they spend their income, he said, as banks will scrutinize that when deciding how much to lend to someone.
In the two decades since arriving in Australia, Lakhwinder Singh has built a $4.5 million portfolio of eight properties in four states. One of his properties is pictured
The father-of-two started his journey of buying property a few years after arriving in Australia with the family home. Mr Singh is pictured with his wife Kuljit Kaur, 18-month-old son Harvey and six-year-old son Kohinoor
Mr. Singh advises investors to look for “X-factor properties” that stand out, such as a divisible plot of land and side access. One of his properties is pictured
Loan applications ask about all of a person’s expenses, up to how much takeout coffee they buy each week.
although $60,000 is enough to get up the real estate ladder, Mr. Singh recommends having an emergency fund of $10,000 to $15,000 per property to mitigate risks such as missed rent payments and sudden maintenance problems.
He said rising interest rates should not discourage people from investing in housing as property shortages in most parts of Australia will soon lead to higher values.