Man Reveals Bought Three Properties Without Sacrificing Anything
On February 12, the Daily Mail reported that Ben Johnson bought his first house in Ballarat, an hour’s drive from Melbourne, when he was 25 years old.
While he regrets not investing in real estate sooner, he used to worry that buying a house would prevent him from enjoying life. A person who does not buy a house because he wants to travel should actually buy one. The return on real estate investment is always positive. A house is not hard to rent out, and there is always demand for rental homes.”
Although Johnson’s first property is still on loan repayments, he took 10 months off to travel around Asia and Europe on a reasonable budget. He said he paid off his loan with the rent he received, and he still has some money on hand, so he does not worry about finances when he travels.
“Getting the first property is the hardest, then it gets easier,” Johnson said. Despite Johnson’s family’s financial difficulties, he has dreamed since he was a child of owning his own house. Having three properties at age 30 was a dream he never thought he could achieve.
Buying his first home cost him $240,000, and saving $25,000 for a bond cost him $25,000.
As a result of “following work” to Melbourne, he rented a one-bedroom apartment instead of living in the house. “At first, it was disappointing, but the problems were later resolved,” he said.
He paid more than double the value of the first property five years ago when he bought it. A new house was built in Johnson’s hometown after he earned enough rent for his first home and decided to buy a second home four years later.
“I wish I had figured this out sooner. Even if I hadn’t started in my 20s, I would have done it as soon as possible,” he said.
A deposit was paid for the land, another deposit was paid for the house’s construction, and the rest was paid with the rent. His superannuation was used to pay for the third home he purchased in Brisbane.
Using his superannuation, he approached Zaki Ameer of DDP Real Estate and asked for help finding a property to buy.
As part of his retirement plan, he doesn’t want to work until he is 65, which makes sense for him to use his pension.
Despite not having seen the Brisbane property in person, Johnson is confident about the deal. When I bought the house, it was rented and in good shape, so I didn’t have to do anything besides ask people to look at it.
His recent success has also been aided by a real estate boom in remote areas. He is able to charge a higher rent for his two homes as a result of Ballarat’s property appreciation.
I could never afford to buy three houses in a big city if I decided to buy one, which is why I prefer renting.”
Despite the lack of growth and the high price in central Melbourne, he plans to keep renting. The market is good in Brisbane, and I think it will get better soon, but most buyers won’t be able to get in before then.”
Despite buying three properties, Johnson said he did not change his lifestyle.
He believes that he will be able to repay the loan even when interest rates rise. “At the moment, I earn $60 a week, but as soon as the third home is built and rented out, I will earn more,” he said.
According to Johnson, he is not afraid of a housing market crash. He plans to hold onto the properties for the long term.