A couple struggling to get a return on their first investment property have revealed how a little advice helped them acquire $6 million worth of real estate.
Adam Robinson, 48, and Belinda, 49, who live on Sydney’s northern beaches, have built an impressive real estate portfolio made up of seven investment properties.
The couple, who have paid off their mortgage, own three homes each in Melbourne and Brisbane and are aiming to buy another home in Perth.
Ms Robinson told Daily Mail Australia they decided to consult leading property investment expert Cam McLellan in a bid to maximize their wealth.
The mother-of-three said they made the decision after purchasing a unit in the luxury suburb not far from where they live, which ended up “receding” in value.
“It was not a good investment,” Mrs. Robinson confessed.
After the couple met Mr McLellan, director of property investment firm OpenCorp, for dinner one night 10 years ago, his advice to invest outside Sydney completely changed their thinking.
“He said you don’t need to drive by and be able to see your investment property,” Ms. Robinson said.
Adam Robinson (pictured right) and his wife Belinda (pictured left), who live on Sydney’s northern beaches, have amassed an impressive real estate portfolio valued at $6 million.
“That’s what was holding us back because we were just saving up and hoping to buy something close to us.”
Robinson, who bought his first home when he was just 22, said they started by buying two houses on the outskirts of Brisbane.
He explained that OpenCorp advised them 10 years ago that they could purchase two homes as investment properties with the equity in their existing home.
The financing strategy is often used to finance the purchase of an investment property.
Lenders typically give homeowners an amount equal to 80 percent of the current value of their existing property to finance the purchase of real estate.
Robinson said her husband, who is a commodities trader, was hesitant at first, but his concerns eased when OpenCorp helped the couple identify areas of growth.
“They (OpenCorp) explained that the reason they made us buy (in certain places) was because within four years a hospital is going to be built or schools are going to be built,” he said.
‘So their houses keep going and suddenly they double in value. I really can’t believe it’s been ten years and we have so many properties.’
Robinson says now is a good time for Australians to invest in real estate across the country (pictured, one of the couple’s investment properties in Queensland).
Robinson said they realized the value of homes outside Sydney is worth much more than investing in property across the port city.
He said the couple experienced this first-hand when they sold their Sydney unit for just over $400,000 after purchasing the apartment for $390,000 in 2002.
Despite the rising cost of property across Australia, Ms Robinson said now is the right time to be a property investor.
“It’s a good time to be a real estate investor because the properties are not empty… people are fighting to get them,” he said.
“It’s a good option for someone who can’t afford to buy the place they want to live.”
Robinson revealed that they plan to buy two or three more properties and sell them over the next decade. They plan to use the rental income to fund their retirement.
The latest figures from property website PropTrack have revealed that house prices across Australia grew by 0.3 per cent last month.
The median house price is currently $869,000, with Sydney currently the most expensive capital to live in, with the median house price valued at $1.45 million.
Perth, Adelaide and Brisbane have recorded the fastest growth in property prices over the past two years, according to analysis by property website Property Update.
Home values in Perth have increased by a whopping 22.6 per cent over the past year.