A former music teacher who bought his first property at 29 and has since built up a $ 12 million portfolio of 16 houses, has shared exactly what he’s looking for when buying – and the biggest mistake people make with their investments.
Lloyd Edge, who lives in a six-bedroom, six-bathroom waterfront property with a jetty in southern Sydney, was a freelancer with a $ 51,000 salary when he paid a 10 percent down payment on his first home.
The $ 260,000 one-bedroom apartment in the Rockdale suburb of St. George cost him $ 26,000, plus stamp duty, and was the start of his purchase of villas, homes, and duplexes along Australia’s east coast.
Now 45, Mr. Edge has a very sophisticated idea of what a good buy is, and he helps others realize their real estate dreams through his homemade company, Aus Property Professionals.
Lloyd Edge (pictured) was a freelancer with a $ 51,000 salary when he paid a 10 percent down payment on his first home in Sydney
Now 45, Mr. Edge has a very sophisticated idea of what a good buy is, and he helps others realize their real estate dreams through his home-made company, Aus Property Professionals (one of Mr. Edge’s homes)
“Every place I buy should match my growth goals and ensure good cash flow in the first place,” he told FEMAIL.
‘In terms of location, I look for government expenditure on infrastructure, it must be close to facilities such as cafes and restaurants, quiet streets and dead ends (no busy roads).
‘I look for areas with different industries and pillars of economic growth, near universities, hospitals, school catchments, floor plans FSR (floor / space ratio on land) is important and I never buy flood zones and stay away from flight paths. ‘
Following this exhaustive list means that Mr. Edge is guaranteed a good return on his investments, even during the economic downturn caused by the corona virus.
“Don’t be afraid to get in and buy if you have a stable income now,” he said.
Following this exhaustive list means that Mr. Edge is guaranteed a good return on his investments, even during the economic downturn caused by the corona virus (pictured with his wife, son and dog)
“I grew most of my portfolio while I was a teacher and my income steadily increased to about $ 100,000 over time, which helped sustain more loans from the bank,” he said
What does Mr Edge look for in a home?
* It should ensure good growth and good cash flow over time.
* It must be located in an area where the government spends money on infrastructure.
* It must be near amenities such as cafes and restaurants.
* It should be on a quiet street or a dead end street rather than a busy road.
* There must be several industries or pillars of economic growth close by.
* It must be near universities, hospitals, school catchment areas, and FSR (floor / land ratio) maps are important.
* He never buys in flood areas and stays away from flight paths.
“It’s going to be a buyer market and good deals are coming. Buy a good deal and you immediately create some equity – or value – when the markets increase again. ‘
He advocates negotiating ‘hard’, but takes your long-term goals into account so you don’t outbid unnecessarily.
“Whatever happens to coronavirus, it will pass, but you need to hold yourself accountable for your long-term goals and keep in mind that ownership is a long-term vehicle,” he said.
“I made some good purchases and equity during the 2008 global financial crisis. It is these times that offer good opportunities. ‘
The biggest mistake he sees potential investors make is trying to time the market to get the highest possible return on their purchase.
The biggest mistake he sees being made by potential investors is trying to time the market to get the highest possible return on their purchase (a mansion owned by Mr. Edge in Sutherland)
Mr Edge said it is impossible to say when the bottom of the market will come because when this happens the market will already be recovering and you will likely have missed the opportunity.
Also, don’t just hunt down rental returns (how much money an income will yield). I mentioned in my book Positive attitude how I bought a property in a mining town with very high rental income and that was very attractive to me, “he said.
But then the market collapsed. You have to buy where there are different industries. It is the capital growth (appreciation of an asset over time) that creates wealth, not high rental income. ‘
Mr Edge is now trying to buy real estate Using a 20 or 25 percent down payment on equity, or added value, it grew out of other mortgages.
Mr Edge is now trying to buy real estate with a 20 or 25 percent down payment with equity, or value added, he grew out of other mortgages (one of Mr Edge’s properties in Armidale)
“I grew most of my portfolio while I was a teacher and my income steadily increased over time to about $ 100,000, which helped sustain more loans from the bank,” he said.
“But I also tried to balance my portfolio with a mix of high growth and good cash flow properties. The good cash flow properties – which generated an income – helped me get more loans.
“In the end, I had over $ 100,000 in passive income – which required me to collect rent – from my properties (which was more than my paid job).
“I no longer rely on a salary because I am self-employed and have passive rental income, but still regularly buy real estate with large deposits that I have acquired through capital appreciation.”
The key to his success was reading many investment books, including titles such as Robert Kiyosaki’s Rich Dad Poor Dad and Steve McNight’s 0-130 properties in 3.5 years in his late twenties.
He also attended seminars and read “as much as he could” on the Internet.
Now his properties include capitals such as Sydney, Melbourne and Brisbane, as well as regional areas such as Newcastle, Armidale, Port Macquarie and Toowoomba.