Rising house prices and the constant fear of rising interest rates have not deterred property tycoon Eddie Dilleen from snapping up another 10 properties in the past six months, and he firmly believes anyone can still enter the market.
The 33-year-old from Sydney, who grew up on the housing commission with his mother, has 110 properties to his name worth $90 million and earns $50,000 a week in rent.
Since purchasing his first unit at age 18, he “learned the game” and built his impressive portfolio. Today, the father-of-two has 35 properties in Perth, 50 in Brisbane, 15 in Sydney, eight in Adelaide and two in Melbourne.
And he doesn’t plan to stop anytime soon, hoping to reach 2,000.
Eddie told FEMAIL that there are four “golden rules” that he swears by and that others can use to follow in his footsteps: buy below market value, buy in metropolitan areas and make sure the rental yield is at least six percent.
He also shops in places others avoid—a strategy known as “contrarian value investing.”
While many young Australians might consider owning multiple investment properties “unethical” or “greedy”, Eddie says landlords like him aren’t the problem when it comes to house prices.
Eddie Dilleen (pictured left with his wife) has 110 properties to his name worth $90 million and collects $50,000 a week in rent.
Eddie told FEMAIL that there are four “golden rules” that he swears by and that others can use to follow in his footsteps: buy below market value, buy in metropolitan areas and make sure the rental yield is at least six percent. Also shop at places others avoid.
Eddie said he tends to shop in areas that don’t have a lot of demand to get the best price.
Earlier this month, reports highlighted that house prices in Melbourne have fallen by 1.1 per cent.
With a median house price of $929,715, Melbourne is now Australia’s fourth most expensive capital market for a home with a backyard, despite being Australia’s second most populous city.
Rather than avoiding the capital city, falling property prices and an influx of units have piqued Eddie’s interest.
‘I think Melbourne is undervalued as a market in itself. “Basically everyone is fleeing, which is one of the reasons prices are falling, and I see it as an opportunity,” he said.
“I did the same thing in Queensland, Adelaide and parts of Sydney years ago and now those markets are on the rise.”
One of his most recent purchases in the Melbourne CBD was a one-bedroom apartment purchased for $327,000.
He explained how the market operates in a “cycle” and right now Victoria is at the lowest point where prices have fallen and are likely to rise again in the future, presenting the perfect opportunity for buyers.
Pictured: One of Eddie’s recent purchases was a one-bedroom unit in Washington priced at $327,000, where he receives $550 a week in rent, or an 8.74 percent return.
He also managed to secure a 10-unit complex in WA for $4.1 million. This complex receives rent of $6,600 per week with a yield of 8.33 percent.
As for those criticizing his strategy, Eddie said: “You can’t hate the player, it’s the game itself.” The system is rigged.
‘Either you learn to play and do the best you can or you say it’s too hard and do nothing. If it’s not you, it will be someone else.
And if the owners are not allowed, everything will be ten times worse. Owners are actually needed.
Looking at the current market, Eddie said Australians can still get in with the right strategy and his only advice is to “act now”.
Even with the current very high interest rates.
“Yes, everyone is afraid of interest rate hikes, including me, but I do it anyway,” he said, although he mentioned that his rental income helped protect him from it.
However, he noted that it depends on the situation.
For example, the average person on $70,000 a year would not be able to afford a $4 million property in Bondi.
Instead, Eddie endorsed rental investing, which involves living in a desired area and purchasing an investment property elsewhere.
Currently in New South Wales there are apartments and units available in Western Sydney for as little as $370,000.
But those not keen to rent and invest may need a lifestyle change away from popular areas such as the eastern suburbs.
As for those criticizing his strategy, Eddie said: ‘You can’t hate the player, it’s the game itself.’
Under the right circumstances, Eddie is confident Australians can buy their first two investment properties in just one year.
“It’s possible to buy with a five per cent deposit… I started with a 10 per cent deposit when I was 18,” he said.
To help others, he has written another book titled ‘How to buy 10 properties quickly’.
He recommends trying different lenders and mortgage brokers to maximize your borrowing capacity, be creative and persistent, and educate yourself.
