“I went against what everyone said”
Andrew Martin | Business Development Manager | 23 | London
I started my journey at a really young age. I remember finishing high school and on the following Monday, when all my friends were out partying and celebrating (probably for months to come), I donned a suit and went to a print company to get my first job in sales.
I guess even back then I was doing things quite differently to everyone else.
Once I started this job, I saved and saved and saved until I had a bit of money behind me, which I then invested in a property course. All my friends couldn’t believe what I was doing, they were saying ‘you have no money, why are you bothering doing that course? …You’re stupid’.
Regardless of what they said, I went ahead and did the course anyway and I also read up a lot about property investment and started watching the markets. I had narrowed down the kind of investment I wanted – I would go for maximum capital growth I could get on my small budget and because I was on a good income, I could handle the negative cash flow to generate my capital growth. I selected three buyer’s agents to call.
I phoned two of the agents and they weren’t interested in me. I then called Trevor at Property Wizards expecting to get rejected again, it didn’t happen. I told him that I had $5000 to start investing and had a pre-approval from ANZ Bank. He was sure they could find me something that would fit both my criteria for strong capital growth and remain within my budget, so I signed up with Property Wizards.
For the tight budget, the better growth areas were out, as they were too expensive. So it had to be a creative way of producing growth through “add-value” in a cheaper area.
Within a month the Property Wizards system had found me a fantastic property within the budget with future value to unlock, that most buyers were not aware of.
They provided me with a report that qualified the property, by running it through systems for evaluating the hidden value of the property to show me what its real potential is, not what it is priced at in the market, or what real estate agents say. The property was compared to what is on the market and what has been sold recently in the area that was comparable to mine and a whole lot more. It was obvious from this information that this property was a great buy.
When it came to the crunch of actually buying the property, everyone I knew was advising me against it, with every objection you can imagine. They couldn’t believe that I would buy this property through someone I hadn’t met and buy a property I hadn’t seen.
As I was only 23 at the time and furthermore I was about to head overseas to set up a company, it was a crazy time and I had all these people in my ear trying to look out for me. I was nervous and at times questioned my decision but in the end I decided that I would trust my instincts and went ahead with the help of Property Wizards, I purchased the property. No one said that wealth creation was an easy road where everyone agrees with your decision.
My investment property more than doubled in less than 3 years, this investment property turned a surprising unexpected bonus, as it was bought in an area marked for rezoning, which means that when the new zoning is rolled out this property will become a two unit site.. This means that its value will increase a whole lot more as I can have two homes not just one on the block.
Only about 5 to 10% of homes in the area fall under the increased zoning and probably only 5 to 10% of those would likely allow for you to retain the front home and not demolish. Around half a percent of homes for sale in the area had this potential to unlock this amount of hidden wealth.
There was no premium built into the purchase price for the potential subdivision because it was a few years away and very few buyers knew about it at that time. Therefore it only had the price tag of a single home and was bought at about $15K less than market value.
This means I effectively bought two properties for the price of one. It wasn’t the $15K-under bargain-price that would give me the capital growth, it’s the choice of property.
There’s maybe only about a year to go now before the new zoning becomes effective, and I’ll be able to subdivide, more than likely retaining the existing home. I’ll also have choices – for example, I can build on the back or just sell the land and put the money into the mortgage or into another property.
I have been in London for about three years and my property is going really well. By using Property Wizards’ expertise I got myself off to an amazing start in investing in my financial future that I never could have done otherwise. I’ve also done it without compromising my lifestyle or career. I still travel and go out and have fun just like anybody else my age.
It was a fantastic decision to use Property Wizards and their systems to ensure I bought the right property to gain maximum growth.
Property is their lives not simply a job and that is what made the difference to my experience. I will definitely go with them again when I come back from overseas, I look forward to creating enough wealth through property so that will enable me to, in time to give up working for someone else and follow my passion of working in my own Property Development company.