Case Study: Buy and Hold for Development Potential
“Whether you think you can, or you think you can’t – you’re right.”- Henry Ford
Wilbur Tong | 30 | Corporate Finance Manager | Perth, WA
From the moment I started work I knew that I couldn’t rely on my salary alone to sufficiently create a comfortable position for myself in life. I felt most comfortable with using property as my vehicle for creating wealth and started on the journey shortly after starting work. In the beginning whilst I embarked on my journey, I had to make really large sacrifices in order to get a kick-start at such a young age.
I worked as a business analyst by day and waited tables by night to get enough money together to help me with my first purchase and then later assist with the mortgage. Working these long hours also impacted on my social life, but I took a long term approach and I felt it was the right choice for me.
When I saw the growth in property value I could see the rewards of my hard labour and sacrifices and saw how much it had paid off. I felt inspired to do more, it is a great feeling to see what you have achieved. Within a few years of starting work full time, I had bought two properties.
I moved to Perth to pursue my career and decided to capitalise on the market over here as Sydney had already peaked and I had ridden the whole cycle. I was keen to jump in and do the same thing over here in Perth.
The only problem is that I didn’t know the Perth market at all, WA takes up one third of Australia and I had no idea where to even start looking for an investment property. I knew I needed the help of some experts.
I met with the Property Wizards team and discussed my overall strategy which is to create wealth and ensure financial freedom later on in life, I didn’t intend on always working so hard. It was once I’d seen Property Wizards methods and results that I decided on a strategy of buying a property that I could subdivide, to create extra value and additional equity.
We secured a great property in a small area where they were planning new zoning to a higher density. This would mean my property would go from one to 5 sites and possibly I could get 6 with some special applications. It meant I had to be patient for a few years while the wheels turned. A valuation completed just recently showed that the value had increased by almost $200,000 in just 2 and a half years.
With the Property Wizards methods I also bought another property where I have almost completed the subdivision and I am waiting for the titles to be released, so the value of the property will go up once I have the additional block.
Working with Property Wizards has been a great learning curve for me, tapping into their wealth of knowledge and fine tuning my buying strategies and processes and implementing their systems, has made me a smarter, wiser buyer.