A couple who struggled to make a return on their first property investment have revealed how a little advice helped them acquire $6 million worth of property.
Adam and Belinda Robinson, both in their late 40s, live in Sydney’s Northern Beaches and have built an impressive property portfolio consisting of seven investment properties.
The couple, who have paid off their mortgage, own three homes each in Melbourne and Brisbane and have their sights set on buying another home in Perth.
Ms Robinson told Daily Mail Australia they decided to consult leading property investment expert Cam McLellan in a bid to maximize their wealth.
The mother-of-three said they made the move after buying an apartment in an upmarket suburb not far from where they live, which eventually “deteriorated in value”.
“It wasn’t a good investment,” Ms. Robinson admitted.
After the couple met Mr McLellan, director of property investment firm OpenCorp, for dinner one evening a decade ago, his advice to invest outside Sydney completely changed their thinking.
“He said you don’t have to drive by to see your investment property,” Mrs. Robinson said.
Adam Robinson (pictured right) and his wife Belinda (pictured left), who live in Sydney’s Northern Beaches, have built an impressive property portfolio worth $6 million
“That held us back because we were just saving and waiting to buy something close to us.”
Ms Robinson, who bought her first home when she was just 22, said they started by buying two houses in the Brisbane suburbs.
She explains that ten years ago they were advised to buy two houses as investment properties with the equity in their existing home.
The financial strategy is often used to finance the purchase of an investment property.
Lenders typically provide homeowners with an amount equal to 80 percent of the current value of their existing home to finance the property purchase.
Mrs Robinson said her husband, who is a commodities trader, was initially hesitant but his concerns subsided once their growth areas were identified.
“They explained that this was the reason they were pushing us to buy [in certain places] was because in four years a hospital is going to be built or they are going to build schools,” she said.
“So your houses just keep going and suddenly they double in value. I actually can’t believe it’s been 10 years since we’ve had this much property.”
Mrs Robinson says now is a good time for Australians to invest in property across the country (pictured one of the couple’s investment properties in Queensland)
Ms Robinson said they realized the value of homes outside Sydney was worth much more than investing in properties in the harbor city.
She said the couple experienced this first-hand when they sold their Sydney apartment for just over $400,000, after buying the apartment for $390,000 in 2002.
Despite the rising cost of property across Australia, Ms Robinson said now is the right time to become a property investor.
“It’s a good time to be a real estate investor because properties out there aren’t empty… people are fighting to get into them,” she said.
“It’s a good option for someone who can’t afford to buy where they want to live.”
Ms Robinson revealed they plan to buy two or three more properties and sell them over the next ten years. They plan to use the rental income to fund their retirement.
The latest figures from property website PropTrack show house prices across Australia rose by 0.3 per cent last month.
The average price of a house is currently $869,000, with Sydney currently the most expensive capital to live in, with the average price of houses worth $1.45 million.
Perth, Adelaide and Brisbane have recorded the fastest property price growth over the past two years, according to an analysis by real estate website Property Update.
Property values in Perth have risen by a staggering 22.6 per cent in the past year.