A young property investor who was expelled from school but now has a portfolio worth $35 million has been criticized for his blunt advice on how to get into the property market, but others say he has succeeded.
Jack Henderson, 27, bought his first property at 18 while working in construction and living at home in western Sydney before moving to Newcastle at 21. He then opened his buyers agency Henderson Advocacy in 2020 and now owns 15 houses.
Henderson has spoken out about the current housing crisis and said that buying a home is much more feasible than people might think, and that they just need to be willing to “sacrifice more” to do it.
While rising interest rates and tight supply may deter buyers who think they have no hope of purchasing a property on an average income, Henderson thinks otherwise. However, his advice has not been very well received on social media.
Mr Henderson recorded himself watching statistics published by the ABC highlighting the average income needed to afford a home in each capital city.
Sydney’s Jack Henderson (pictured) shared what he thinks Australians should do to get up the property ladder. The 27-year-old told FEMAIL that buyers should start small by buying where they can afford to live in the suburbs further away from the capitals.
According to research by the Parliamentary Library, Australians need an average income of $293,578 to afford a home in Sydney and $189,962 for Melbourne.
But Henderson said there are alternative options available, including looking beyond CBD.
“Judging by these figures, no one will ever be able to own a damn house, especially if you live in Sydney,” he said in the video.
‘Or is the real problem not housing affordability but how people want to live to earn the income they earn? I guess a little bit of the old champagne taste and beer budget syndrome.
Henderson said he agrees that larger cities are expensive compared to others across the country, but that’s because they are “some of the best in the world” to live in.
“If you’re someone who earns an average income, I don’t think you should be expected to be able to live 10, 15, 20 minutes from a major global city,” he said.
But he highlighted that there are still properties on the Sydney market available for less than $800,000; buyers just have to sacrifice living close to the CBD.
He has now spoken out about the current housing crisis and said that buying a home is much more feasible than people might think, they just need to be willing to “sacrifice more” to do it.
Mr. Henderson then shared two examples of where he and his parents grew up and the homes available today.
A three-bedroom, one-bathroom home in Bidwill sold earlier this year for $730,000, but he said most young Australians today won’t consider that purchase because it’s 46 kilometers west of Sydney.
“Now I know what everyone is thinking: ‘Oh, I would never live in Bidwill, I wouldn’t even let my dog outside in Bidwill,'” he said.
‘And that is the problem. There are too many people who don’t start where they need to start in order to enter the market.’
He said buyers with a single or combined income of between $150,000 and $180,000 would likely be able to buy outside Sydney.
Speaking to FEMAIL, Henderson said there are many options for first-home buyers, but a combination of fear and lack of understanding is stopping people from buying.
“When you start out, you can absolutely start in the outer suburbs of Sydney and then progress from there,” he said.
‘There is a perception that you need a lot of money to get started, otherwise you wouldn’t own a house. But this is not the case.
And if buyers don’t want to live in the suburb they’re buying in, Henderson recommends “rentvesting” – renting where you want to fit your lifestyle and buying somewhere else.
The property guru rents a flat in Sydney’s eastern suburbs, but would never dream of buying it in the suburb because it is too expensive.
‘They don’t teach anything about property in schools, so people don’t have the education or understanding. If they did, maybe they would think differently,” he said.
‘I have a twisted sense of perception. My mother grew up on the housing commission and my father grew up alone; his situation couldn’t have gotten any worse. But they started where they could afford it.
“I think it’s about doing something rather than doing nothing at all.”
The property guru himself rents a flat in Sydney’s eastern suburbs, but would never dream of buying it there because it is too expensive.
When purchasing a property, Henderson opts for existing construction rather than new.
He said with new construction there is little history of the area to help determine whether it will be a decent investment. Not only that, but buyers pay a premium because the renovation is new.
This, he says, means that all the value is in the land and not in the home, since properties cannot be replicated through land.
Early in his investing journey, Henderson learned about property through trial and error and relied on a mentor who is now retired.
All of his properties are residential and he does not plan to sell them unless it is really necessary.
Over time he hopes to acquire more properties and eventually have a portfolio valued at $1 billion.
Their strategy is simple: buy good quality properties in good quality areas.
As for his advice to others, Henderson recommends using government grants and schemes available to first-home buyers to save thousands of dollars in stamp duty and LMI.
However, not everyone agrees with his advice to buy properties further away from cities, especially in New South Wales and Victoria, which charge road tolls.
“The gaslighting is strong,” one wrote on TikTok.
‘Drive 50 minutes each way, $20 toll, $30 per day in parking. “Sounds perfect,” added another.
Others praised the “refreshing” advice.
“100 percent well said,” one agreed. ‘Correct. People want their first home to be their dream home, with everything close to everything.’
“Everyone wants to checkmate without playing chess. Exactly what you said, Jack!” another wrote.
‘Exactly what I’ve been saying. People think they should be living in a five-bedroom house in the center of Sydney’s CBD by the age of 23. Start small and work your way up.’