“Push too hard and you can come undone”
John & Jenna Bauer | early 30s, | Electrician & Human Resources | QLD
My wealth creation journey stemmed from a decision to go back to university to complete year 12 and commence a Bachelors Degree in Information Systems.
I got about halfway through my program when I realised that I was going to be in the same position financially, if not worse, after graduating from University, than I would be if I was to continue my trade as an electrician, plus I would have a debt for all the course fees which are very expensive.
I made a decision to leave university. I was dead flat broke and knew there had to be a better way than this. That is how I started attending wealth creation seminars. I started reading everything I could about creating wealth for myself, attending many, many seminars and it wasn’t too long before I permanently put my foot on the path by buying my first property in 2002.
After a few years and having bought a few more properties I decided to use some of the equity we had built up. After talking with Trevor Dunkley I was confident that Property Wizards’ methods would find me a wealth-creating property.
Property Wizards systems found me a great property in Spearwood which their criteria showed up to be a winner:
- It was a very unique site. It had a special 4 unit zoning amongst other properties that were predominantly single residential.
- It was in an area near the ocean with a lot of development and a new marina planned so interest in the area would grow fast
- It was mostly land value, which was a key driver of growth. In fact the valuation showed it was 92% land value and 8% house value.
- The house was almost a free extra to generate rent, on a purchase of very good growth development land – this was an excellent growth strategy.
The ironic thing is that we bought it for $385,000 off two brothers that were actually real estate agents and had no idea of the gold mine that they were selling.
The valuer was amazed Property Wizards even found it and rang them to ask “how did we work this one out?”
I sold the property 12 months later for $560,000 without even doing the subdivision, That is a $175,000 profit in 1 year. The suburb growth for that year was 25.8% which meant my property would have sold for $484,000 but as I had such a unique property, I sold it for a lot more, making my gains 77% more.
My wife and I are definitely property people, we were advised to go into managed funds and shares. This was not such good advice and our experience wasn’t so positive. Because of this, Jenna and I will use any capital growth to reinvest into property and continue to focus on growing our portfolio.
Our profits from using the Property Wizards system have absolutely leapfrogged us way ahead in our property wealth.
In a short period of time I have been able to grow a portfolio which has peaked at $2.5 million. There is no way that I would have been able to achieve that just by working, be it as an electrician or an IT expert. I am still young and by the time my wife and I retire, we will be able to live on an annual income of around $140 – $200K per annum, that is a comfortable pension.
Jenna and I are planning to have a family soon and it so comforting knowing that we will be able to cope comfortably when we have to cut back to a single wage, as well as the fact that our children are provided for in the future.