“You are never totally ready, it’s just about an opportunity, a decision and taking action”
Michelle Head | 28
Recruitment Consultant | Shenton Park, WA
When I was employed as an Office Manager for Property Wizards – a buyer’s agency, part of my job was to put together and manage deals for the buyer’s advisers and their clients. As I was in a central position within the office, I was constantly listening to the adviser’s conversations about the latest bargain property find, or a brilliant property that was set to make a lot of money for the buyer. I was also privy to conversations of previous clients and heard how well they had done from the properties that we had bought for them. I could see that this was the perfect way of making money fast, but there was no way that I was open to the idea of having to sacrifice my lifestyle to invest in property.
I am in my late 20s and I have lived a good life, I have traveled and partied pretty hard and as a result I accumulated a fair bit of debt and have nothing but good memories to show for it.
Although I saw the buyer’s agents in the office buying properties for themselves and their clients and doing really well out of it, I never invested. The whole team were constantly badgering me about buying property; they couldn’t believe how I didn’t see the benefits of getting into the market.
As the months passed, all my objections were overcome and I made the decision to invest.
I organised pre-approval on a loan and waited, I didn’t know if anything would happen as I only had a small budget.
One day in the office one of the advisers found a great property, but it was way below the price bracket for all of his current clients and it was a brilliant piece of property that had the ability to retain the home and subdivide thus creating an extra street front block. None of the agents had a client wanting this specific investment and as they all hate to see a good deal go by, he jokingly asked if I wanted to buy it.
I decided to go ahead and purchase this house. It was even way under my budget and we bought it under market value. I wasn’t even going to go and have a look, I just trusted the advisers that much.
Eventually I went down to have a look which was a great learning experience. I remember walking around and commenting how pretty the house was, which is how I would have made a decision, whereas the Property Wizards adviser had to firmly advise me that we were looking at an asset and its potential not how pretty it was or wasn’t. This was my greatest first lesson in property investment. Property Wizards taught me to take all of the emotions out of buying. We are buying a vehicle to create wealth, not an asset to sit on our shelves and look at.
My plan was to do the subdivision straight away and have everything completed in 12 months to sell immediately and make a tidy profit. The subdivision is almost complete and I have spent about $30,000 on the subdivision.
I bought at the peak of the market, but because of our conservative estimates and because I added my own value, not relying on market growth, I didn’t have to worry.
In the current flat market I stand to make potentially $20,000-30,000 profit. The best thing of all is that I was still able to party and enjoy myself while subdividing and increasing my wealth.
By gaining the knowledge from Property Wizards and investing in a property with potential profits, I now look at property differently.
If I hadn’t worked for Property Wizards, I definitely wouldn’t have invested. The profits I make are going to help me fund another overseas trip and I won’t have any more debt. I am keen to invest again, as it provides a nice little windfall for whatever I want to do with minimal risk.