This Sydney couple made $2.4 M net worth and $50 K in passive income in just 4 years
“We realized we wanted to get a $5 million dollar portfolio. Once we committed to Binvested we rapidly went from one property to 17 within two years. Each property served a particular purpose in our strategy and worked for us”
Nathahn and Monika Walter. Sydney, Australia
Key Stats
Nathahn Walter, 42, Business Development Manager and Monika Walter, 41, Full time mum
Starting savings: $145,000 (in super)
Starting equity: $165,000 (in family home)
Key Achievements with Binvested
Number of properties with Binvested: 16
Current Binvested property total worth: $ 4 million
Current Binvested property net worth: $ 2.4 million
Current Binvested property rental income: $3,200 per week
Current Binvested property mortgage repayments: $2,250 per week
Duration with Binvested: 4 years
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Nathahn and Monika Walter purchased their first investment property in the late 1990’s. Like many of their family and friends, they followed their accountant’s advice and purchased the property negatively geared.
They held onto the property for four years before selling it with some capital gain. Upon selling their negatively geared property they realized they could have gotten a similar return from the bank with nearly zero effort, as opposed to the hours and hours they put into property.
Nathahn and Monika were hesitant about buying more negatively geared properties, but realized that the biggest mistake they could make was to do nothing. By not taking action they were denying themselves the opportunity to make money.
Nathahn and Monika didn’t allow themselves to be discouraged, and began looking for better investment strategies. Nathahn dedicated himself to researching property investment and attended many seminars, read countless forum threads and a number of books. Out of all his research, the approach of Binvested’s Nathan Birch stood out the most.
Nathahn says “His strategy of buying affordable housing in blue collar suburbs and extracting equity to build a portfolio resonated with me. We were prepared to take on the risk of a positively geared $300,000 property rather than a $600,000 negatively geared property”.
When it came to sourcing the properties, Binvested helped Nathahn and Monika find properties with good capital growth potential, and negotiate them for the right price. The properties also had a good cash flow to make sure they supported themselves.
Nathahn says “once we committed to Binvested we rapidly went from one property to 17 within two years. Each property served a particular purpose in our strategy and worked for us. First we bought in our names, then in self-managed super funds and later in family trusts”.
They used savings in their superannuation funds, and withdrew equity as cash from their personal home in order to invest.
Using the cash extracted from their family home, they purchased their first properties through Binvested in 2012. “We still maintained an 80 per cent buffer in our principal place of residence so we didn’t risk our family home” says Nathahn, who felt it was very important to protect their family home from risk.
The first was a 2 bedroom unit in Sydney, purchased for $236,000. The property rented for $250 per week at the time. Nathahn and Monika spent $5,000 on a small kitchen renovation. Within 3 months after settlement refinanced the property to extract $45,000 in equity to fund further purchases. The property is currently worth over $400,000. They also bought three positively geared properties in their own names in Queensland, which they were able to extract equity from within three months of purchase.
At the same time Nathahn and Monika decided to take on a bit more risk and buy a gutted out property in the Central Coast for $181,000. After spending $19,000 on renovations they were able to rent the property for $330 per week and have it immediately revalued at $295,000, gaining $95,000 in net worth.
Lastly they purchased three Queensland properties through their self-managed super fund. Nathahn says “when it comes to SMSF’s the buy in, sell out costs and management costs are high so we wanted to make sure the properties produced a net gain. We didn’t want to have ongoing holding costs, we wanted them to pay for themselves and contribute to our fund”.
They have since been using equity to continue growing and consolidating their portfolio. Nathahn feels that the biggest thing he adopted from his experience with Binvested was to set clear goals and align them with a strategy. He says “Initially our goals were all about the number of properties, but we learnt it’s not really about the number of properties. We realized we wanted to get a $5 million dollar portfolio and lower our loan to value ratio from 80 per cent to 50 per cent”.
The property portfolio has already provided more freedom in Nathahn and Monika’s lives. Monika has been able to step out of the workplace to focus on raising their three sons and follow her passion and start up a small home based business while Nathahn has also been able to indulge in a couple of passions such as owning two Land Rovers.
Want to begin investing in property for greater financial security, like Nathahn and Monika?
Do you want to own multiple investment properties and gain financial independence?
CLICK HERE TO BOOK A MAP SESSION Binvested’s experienced team today!
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