Knowledge | Posted by Si Thu Aung
Thousands of young Australians looking to take their first step onto the property ladder are slowly coming to the conclusion its now near impossible to make their first purchase on the inflated market.
But one young Melbournian has defied the odds and shown how leaving high school with barely a cent to your name can be transformed into a small property fortune.
Sasha Hopkins has managed to amass a 22-strong property portfolio valued at an impressive $11 million at the tender age of 28 with clever investment and the little money he had as a school leaver.
Mr Hopkins spent three years saving money wherever possible and after he went back to school and finished Year 12, he placed some of it in the share market, taking advantage of an upturn following the Global Financial Crisis.
By the age of 21, he was able to make his first move in the property market, buying a cheap block of land just outside Hobart in Tasmania for just $45,000.
He used between $7,000 and $8,000 of his savings to pay the deposit and the remaining balance he had from his savings, he used to buy a three bedroom house in Melbourne for $310,000 in 2010.
His block of land fortunately doubled in value in 18 months and allowed him to purchase a third property.
Fast forward seven years and Mr Hopkins now owns property across Victoria, Queensland and Western Australia.
Mr Hopkins said people can't invest their emotions if they're going to purchase an investment property.
"You need to research massively, look at the numbers and the statistics to make a decision," he told 7 News Online.
"I spent the better part of six to 12 months researching different markets before I bought my first one."
If you're planning on investing interstate, or if you're nervous about that prospect, Mr Hopkins suggests seeking help from professional companies.
"I've paid close to $100,000 for professional services and education and partnered with people to help me get further," he said.
Currently "rent-vesting" in double-story Melbourne townhouse, Mr Hopkins said to succeed in property, you need to "build an expert team around you".
"That includes people like a mortgage broker, seeking legal advice, an accountant, a strategist and a suitable property manager for the area you're buying in," he said.
Mr Hopkins was able to replace his income after five years and by age 26 had started his own company The A Team Property Group.
"We're a mentoring company that help people who want professional help when it comes to investing," he said.
Having bought his latest bit of land in Brisbane, Mr Hopkins says it's an optimal time to invest in the city.
He also works to build his empire by adding town houses on the back of his purchased properties. "I've found that provides the best long-term assets," he said.
"Dual occupancy - keep one older house on the block and build two town houses in the backyard." And as for investing in the current Sydney market, Mr Hopkins advises that it would be a bad move right now.
"Anything is possible but it is far too expensive and anybody purchasing in the Sydney market right now wouldn’t be doing right thing," he said.
"There are better options to look at."
Mr Hopkins said it would take a solid five to seven years to finally see the benefit in the idea of investing but that once you get to a certain point it gets easier and just "snowballs".
"In the last year I've probably doubled what I've created in terms of value," he said.
"People need to stick to a budget - if they want it bad enough, they’re going to make it happen."
Ref: Property Report
