Owen: I’ve known Robyn for a long time so thank you Robyn for letting me interview you and Robyn’s a very experienced property investor and she’s helped a lot of people build a property portfolio. So I know your story Robyn. But please tell me again refresh my memory. But for everyone else as well. What’s your story.
Robyn: Sure. I had an interest in investing because I knew that well I guess what started it. I was made redundant in 1999 and I thought OK working for somebody else is not going to necessarily make me rich, I have to do it. So I found Robert Kiosaki’s book, Rich dad poor dad, went on and read that and it really sparked my interest. And there was another one at the time a lady with a child I can’t remember the name. Anyway I thought if she can do it I can do it. So it was just a matter of learning how.
Robyn: And we bought our first property in 99. And just every opportunity we could borrow more money we bought more property. So we built a sizable portfolio all around Australia. I don’t want to get hit with land tax anywhere and A lot of people don’t even know that there’s a land tax issue. Yes. Worst here in New South Wales obviously than anywhere else.
Robyn: So if you’re going to invest diversify. You know people do live over the borders.
Owen: Yeah and do you just invest in house and land or you’ve got a mix or.
Robyn: We have a mix. We’ve got one unit. House and land , mainly town houses I love townhouses. Now I know there is strata fees and a lot of people don’t want to pay strata but we don’t have pools and tennis courts and all that. So strata is not too bad.
Owen: So it’s more about keeping to the small complexes?
Robyn: Yeah and I find the tenants stay longer in a townhouse than they do anywhere else so long term tenancies. We’ve had one lady in our townhouse 14 years. Wow. Is that not a good tenant?
Owen: No it’s great. And you mentioned it’s not just in Sydney that you own property that in other areas can you tell us which which areas.
Robyn: So we went to W.A. and 2002 and they said this is the time to get into W.A. Yes. And I thought all that such a long way away from home being Sydney. And we did go in there and they doubled in 18 months.
Robyn: So we were certainly in the right place at the right time. Well good timing and then Brisbane was going to have a boom. So we came back to Brisbane and then Gold Coast back to W.A. Yes. So we’ve got the three states.
Owen: OK. And how’s Brisbane and Gold Coast performed?
Robyn: Gold Coast. What I find that they’ve all doubled in around about the same amount of time. Tenants are great. Rents are going up again now. GFC obviously GFC if you got caught there everything slowed down. But it’s starting to move. Now rents are going up five dollars every new tenant. Yes. That’s not too bad.
Owen: I was asked by a client last week and I did a bit of a video on it which I’m not sure if it’s going out yet but it’s. I was asked by a client.
Owen: Client the other day about is it the right time to buy and yeah.
Owen: Yeah. Have prices flattened and so on and I was talking about and my comment to them and my comment to everyone was well the most important thing in buying and certainly experienced this in the last year or two is making sure that you can borrow the money. And yes with the Royal Commission and the APRA issues that’s been a big thing.
Owen: But so I was trying to get across the point that it’s more about time in the market rather than timing in the market. Give us your point of view on that.
Robyn: We don’t know where we’re buying really in the cycle if we know prices are dropping then that’s good because they will go up again if they’re going up and we buy here. That could be the top with it. There may be a little bit more growth so it doesn’t really matter.
Robyn: All through your investment time there will be peaks and troughs and that’s just a part of investing. It’s as you say you’ve got to get into the market because if you wait perfect example I met a man like 18 years ago who said he was going to wait because we’re going to have a 50 percent crash in New South Wales. And I thought well the whole country would be in trouble if that happened yet he said when that happens I’m gonna pay cash for everything from 18 years down the track. He still doesn’t have his first investment property. Don’t wait, get it now.
Owen: Thank you for that. And you started at some point helping other people by getting into investment property. And how have you gone with that and what’s your experience.
Robyn: Oh look I just love it because it worked for us and I knew that we were going to have a better existence in retirement and I thought other people need to know about that so I was really passionate about helping as many people as we could. And then we had when I gathered as much information as I could and then shared that with other people family are not the greatest ones to share things with because they go that’s not for us. So people outside of your inner circle are really happy to listen. Everybody wants to get ahead they are just frightened to take that first step.
Robyn: Can I afford it. If you know what’s going to happen. The bank won’t lend you the money if you can’t afford to pay for it you know and you’ve got the tenant and the ATO and if your finances are set up correctly you’ve got a bit of a buffer so you’re not going to get into dire straits and if worse comes to worse you sell the property done but if you hang on to that property and you pay for it today let’s say six hundred thousand in another state, not Sydney.
Robyn: Four hundred to six hundred thousand in ten years time roughly might be twelve years fifteen years.
Robyn: Who knows what the cycle is going to happen. The next one coming up. It’s better. You’ll have.
Robyn: At least 25 percent profit if not 50 percent.
Owen: And have you had any bad experiences with investing.
Yes. Now we’ve got a couple of properties inW.A. and the market over there is really slow going for new tenants coming in right. So when there’s a vacancy. Sometimes we’ve waited two months. So as much as I love W A and everybody has to live somewhere. My choice would be Queensland first and New South Wales if you can afford it and then look at some of the other states Victoria maybe W A at the moment they’re at the bottom of the market just starting to come up.
Robyn: And this is February 2019 so have a look in W.A. There’s more money going in over there, mining’s starting to boom again over there so people will be looking for some where to live.
Owen: And what about regional areas versus versus the capital cities.
I personally don’t go into regional we did buy regional property and we paid 86000 for it. It went up to 120 and then it went up to 180 and I should have sold it then because then it came back down to about 127 when we finally sold
Owen: And was that during a mining boom area.
No. It was in the mining area. But I thought I’d made a good decision because it was near the shopping centre near the hospital.
Robyn: It was near There was a Coles on the corner maybe a 200 metre walk This is a great property. But it wasn’t like. Regional areas are very slow to go up in value. A lady said to me recently last year she wanted to buy a property she’d found in Moree and really good rental return and the government guarantees to fix anything that’s broken.
Robyn: So straight away I’ve gone oh my gosh what are you buying. What sort of tenants are in that area. If that’s a guarantee from the government I’d be going no thank you. Yeah.
Owen: And so with the turmoil we’ve had over the last year or two with the banking royal commission and the market in Sydney especially coming back. Where do you see the market over the next 12 18 24 months.
Robyn: I don’t know.
[00:08:09] And you
mentioned you know Sydney is always a good place to buy. But Brisbane might be
your pick at the moment.
Robyn: I know I have met people who only want to buy in Sydney.
Robyn: Yeah and while they’re waiting for the prices to drop because they can’t necessarily borrow a million dollars. So you have to have a look in reality and if your borrowing capacity is 400 thousand to seven hundred thousand.
Robyn: Look interstate because you will get a tenant. I think the banks are starting to hurt a little bit because they’ve lost a lot of lending.
Robyn: I Think. Let’s just hope they get their act together and start making it easier for investors because what cheeses me off, Owen is we’re setting up our own future. We don’t need a pension.
Robyn: You know so we’re going to be self-sufficient and yet the government is trying to penalise us left right and centre and make it hard for us to buy more property.
Robyn: plus we’re putting rooves over people’s heads so if I can just say tenants need some where to live.
Robyn: We’ve got the money to buy an investment property does that make us greedy. I don’t think so we’re helping the community supplying jobs for people in the complex otherwise they end up in the public housing system. That’s right and that’s not necessarily, well that’s where I started. So you can always work your way out it.
Owen: Yeah. Well thanks Robyn. And thank you everyone. No matter where you’re watching or listening to this please give us some feedback. Let us know what you think. Have any questions or would like other subjects or topics talked about in the future. Please let us know reach out.
Robyn: Happy Investing!