A young property investor who was kicked out of school but now has a portfolio worth $35 million has been criticized for his blunt advice on entering the housing market – but others say he is ‘in it’.
Jack Henderson, 27, bought his first property at the age of 18 while working in construction and living at home in Western Sydney before moving to Newcastle at the age of 21. He then opened his buyer agency, Henderson Advocacy, in 2020 and now owns 15 homes.
Mr Henderson has spoken about the current housing crisis, saying that buying a house is much more achievable than people might think and they just need to be prepared to ‘sacrifice more’ to do so.
While rising interest rates and a shortage of supply may deter buyers who think they have no hope of purchasing a home on an average income, Mr. Henderson thinks otherwise. However, his advice is not so well received on social media.
Mr Henderson recorded looking at statistics reported by the ABC which highlighted the average income needed to afford a house in each capital city.
Jack Henderson from Sydney (pictured) shared what he thinks Australians should do to get on the property ladder. The 27-year-old told FEMAIL that buyers should start small by buying where they can afford to live in suburbs further away from the capitals.
According to the Parliamentary Library research, Australians need an average income of $293,578 to afford a house in Sydney and $189,962 for Melbourne.
But Mr Henderson claimed there are alternative options available, including looking beyond the CBD.
“The way these figures appear, no one will ever be able to own a home, especially if you live in Sydney,” he told the paper. video.
‘Or is the real problem not housing affordability, but where people want to live for the income they earn? A bit of the old champagne taste and beer budget syndrome I think.’
Mr Henderson said he agrees that the bigger cities are expensive compared to others across the country – but that’s because they are ‘among the best in the world’ to live in.
“If you’re someone who makes an average income, I don’t think you should expect that you could live within 10, 15, 20 minutes of a major metropolis,” he said.
But he stressed there are still properties available on the Sydney market for less than $800,000. Buyers only have to sacrifice living close to the CBD.
Now he has spoken about the current housing crisis and said buying a house is much more achievable than people might think, they just have to be willing to ‘sacrifice more’ to do it
Mr. Henderson then shared two examples of the situation he and his parents grew up in and the homes available today.
A three-bedroom, one-bathroom house in Bidwill sold for $730,000 earlier this year, but he claimed most young Australians would not consider such a purchase because it is 46 kilometers west of Sydney.
“Now I know what you’re all thinking: ‘Oh, I would never live in Bidwill, I wouldn’t even let my dog on the street in Bidwill,’” he said.
‘And that’s the problem. There are too many people who don’t want to start where they need to start to enter the market.’
He claimed buyers with a single or combined income of $150,000-$180,000 could likely buy in Sydney’s suburbs.
Speaking to FEMAIL, Mr Henderson said there are plenty of options for first home buyers, but a combination of fear and a lack of understanding is putting people off buying.
“If you’re starting out, you can absolutely start in the suburbs of Sydney and progress from there,” he said.
‘There is a perception that you need a lot of money in the beginning, otherwise you won’t have a house. But this is not the case.’
And if buyers don’t want to live in the suburb where they buy, Mr Henderson recommends ‘rentvesting’: renting where you want it to suit your lifestyle and buying elsewhere.
The property guru rents an apartment in Sydney’s eastern suburbs but would never consider buying in the suburb because it is too expensive.
“They don’t teach anything about property in schools, so people don’t have the education or understanding. “If they did, they might think differently,” he said.
‘I have a distorted sense of perception. My mother grew up on the housing board and my father grew up alone – their situation could not have gotten worse. But they started where they could afford to.
“I think it’s about doing something, rather than doing nothing at all.”
The property guru himself rents an apartment in Sydney’s eastern suburbs, but would never consider buying in the suburb because it’s too expensive
When purchasing real estate, Mr. Henderson opts for existing buildings rather than brand new buildings.
He said there is little track record for new construction from the area to help determine whether it will be a decent investment. Not only that, but buyers also pay a premium because the renovation is new.
This means, he says, that all the value is in the land and not the home, as properties with land cannot be replicated.
Early in his investing journey, Mr. Henderson learned about real estate through trial and error and relied on a mentor who is now retired.
All of his properties are residential and he has no intention of selling them unless absolutely necessary.
Over time, he hopes to acquire more real estate and eventually have a portfolio worth $1 billion.
His strategy is simple: buy good quality properties in good quality areas.
As for his advice to others, Mr Henderson recommends taking advantage of government grants and schemes available to first home buyers to save thousands of pounds on stamp duty and LMI.
However, not everyone agrees with his advice about buying property further away from the cities, especially in New South Wales and Victoria where roads are tolled.
“The gaslighting is strong,” someone wrote on TikTok.
“Drive 50 minutes one way, $20 tolls, $30 a day parking. Sounds perfect,” another added.
Others praised the “refreshing” advice.
“100 percent well said,” one person agreed. ‘Correct. People want their first home to be their dream home, with everything close by.’
‘Everyone just wants to checkmate without playing chess. Exactly what you said Jack!’ another wrote.
‘Exactly what I said. People think that at 23 they should be living in a five-bedroom house in the middle of Sydney’s CBD. Start small and work your way up.”