_{Highlight segments:}

_{1.07 – Cate kicks off the episode}

_{3.50 – Dave shares his thoughts on how some of these young multi-property portfolio investors have managed to do it}

_{5.55 – Cate distills some interesting ATO data out of Dave}

_{8.38 – “Let’s talk about the psyche of someone who wants ten-plus properties”}

_{19.12 – Teaser from next week’s episode… The November Market Update}

_{25.00 – Mike challenges Dave to share what sorts of alternative finance could be available for our listener duo}

_{31.45 – What is the one key ingredient that could enable an investor to attain a great portfolio?}

_{35.17 – And our gold nuggets!}

A lovely listener, Zak has written in to the the Trio. He and his partner have worked hard as young professionals and have acquired two properties; each with high 80’s LVRs. One is a boutique apartment in Melbourne’s leafy inner south/east, and the other is a character brick house in beautiful pocket of Ballarat.

But despite their strong incomes and dedication to their financial goals, their borrowing capacity has precluded them from further investing for now. The question he has is, “how is it that some individuals (often in their early to mid thirties) are able to amass large portfolios of (say) 10+ properties?”

Can it really be done, or is it a mirage? The Trio enjoy unpacking this one.

Dave starts with some possible explanations for how these young multi-property portfolio investors manage it, and he also shares some interesting data direct from the ATO about the percentage of multi-property investors. Scarce indeed!

“Let’s talk about the psyche of someone who wants ten-plus properties”. Cate sheds light on what drove her to pursue a quick succession of investment property purchases when she was younger. Mike leads the conversation around ego-metrics too.

The Trio challenge some of the mirages out there that investors claim as ‘investments’, and Cate talks about the headache factor of a large portfolio, particularly when she considers upkeep on interstate holdings.

Mike challenges Dave to share some of the alternative financing sources that our listener duo could consider to break past their borrowing capacity constraint. Dave delves into cashflow and buffers, and he talks about risk and where it is relevant when it comes to multi-property investors.

Dave and Cate agree on one key ingredient that can certainly optimise an investor’s chances of attaining a multi-property portfolio… and it’s time.

Lastly, our gold nuggets……

Mike Mortlock’s gold nugget: Forget the white noise! Just stick to the simple stuff. There’s no tricks. Set a plan based on what you want your retirement to look like.

Dave Johnston’s gold nugget: Work out how much passive income you need for retirement (in rent), work out the total property value you are aiming to purchase, and consider the number of properties that this represents. Shut out the superfluous noise and don’t worry about what others are investing in.

Cate Bakos’s gold nugget: Time is your best ingredient, so don’t sit around waiting to jump into property. When you can, you should.

Resources:

If you enjoyed this episode, you may also enjoy these:

Ep. 5 – The lifestyle vs Investment conundrum

Ep. 6 – What determines your Property Strategy

Ep. 13 – How age and stage of life can impact your property plan and selection

Ep. 22 – Why the family home is often the biggest piece of the investment puzzle

Ep. 27 – How many properties do you need to retire wealthy?