Sia and Louis started investing in 2008. In the past 3 years, they have amassed a portfolio of eight investment properties. Including their home in Menai, they have managed to build as asset base now of $3.6 million.

How did it all start? Well, firstly, Sia and Louie always knew they wanted to do something more, they had paid off majority of their home mortgage, and had itchy feet as they say…

Like many investors the key to kick-starting their strategy was their home – a five-bedroom house bought in Menai in 2006. They were already renting out their previous home in Bangor, however, Sia soon realised their finances were all backwards, little mortgage on what was now an investment and a large non deductable mortgage on home…. Common mistake, but it can be fixed.

So Sia and Louis decided to sell their Bangor property and pay down the mortgage on home… this is what we refer to as “game on”..

So, with $466,000 in equity to go play in the property market, they bought two properties in Sydney, one in Waverton and one in Elizabeth Bay. “To begin with, we got a map of Sydney out and decided to diversify by buying something on the north, south east and the west” says Sia.

“We started in the north with Milsons Point and surrounds. One place in Waverton stood out, as it was close to transport and shops. We made an offer, which was declined – so, we said thanks very much and we walked away. Two days later, we got a call from the agent saying that the vendor would accept our offer after all”.

The next purchase was in Elizabeth Bay. “We started to talk to people about serviced apartments, and soon found out that the apartments weren’t looked upon well, so we started looking at studios, and one that was a bit bigger, which is exactly what the market wanted”.

“It was good timing, as bought it for $190,000 – $20,000 below the advertised price – and interest rates dropped by the time we settled. On top of that, we were renting it fully furnished for $360 pw. We weren’t too concerned about the GFC: our view was ‘people still want to live somewhere’”. Less then a year later, Sia and Louis bought another property, a two-bedroom unit in Cronulla for $357,000 and a block to build on in Cameron Park near Newcastle.

The Cronulla property is not just an investment though; the intention for Sia and Louis is for them to move into the unit down the track (once the kids are off on their way). Sia and Louis were then contemplating where to buy next… funny enough they were chatting with Gavin Ottaway @ Ray White Menai who sold their Bangor property, Gavin recommended they talk with Todd @ the wHeregroup about where he was buying…So in August 2010 they came into the office and we bought them a property in Corio for $254,000. This property is a 3-bedroom house, low maintenance and now receives $290 per week rent.

Then in September 2010, shortly after the first settlement, they were ready to go again…. So we bought them a property in Goodna in Queensland. The purchase price was $283,000 and they receive $300 per week now, and in 6 months the lease already has a $5 per week increase – happy days…During this time, they were just settling on the construction of their new Cameron property (near Newcastle), which now receives $440 pw. The cost to buy this property was $352,000.

But, even after two more investments, they bought another, a 3-bedroom house in Blackwater Queensland – this is their cash cow, they paid $310,000 and receive returns of $630 pw. Then the last property was in November last year, a 2-bedroom unit in Cronulla for $375,000.

So after 3 years, they have accumulated 9 properties including their home, and they still have a lifestyle they enjoy, and more importantly, they have diversified a portfolio of properties that are low maintenance which will follow different market cycles around the country…

Wow, what a busy 3 years for Sia and Louis…

So whats the plan for Sia and Louis from here? They are now looking at their superfund to roll their super into a SMSF so they can set up their retirement strategy and begin investing through super. The kids are busy preparing for their HSC and within 10 years they aim to sell down a portion of their portfolio and do the “passive income strategy” and travel overseas a few times a year…