Former Macca’s employee owns 16 properties at age 27
Welcome to our new segment, Property Buzz, presented by McCafé and Michael ‘Wippa’ Wipfli. In each episode we’ll meet a new person on the hunt for their perfect property, and ask them any brewing questions over a cup of coffee.
This week, we meet a 27-year-old property-buying genius….
Think back to when you were 18 years old. What were you doing back then? Just starting uni? Getting ready to set off on a backpacking adventure?
Chances are it wasn’t putting a down payment on a house. But, at just 18, that’s exactly what Eddie Dilleen found himself doing.
“I came from a really humble background,” he says. “No one in my family owned property, and that was one of the reasons I wanted to buy.”
From the age of 14, Dilleen worked at McDonald’s, first part-time, then at 16, full-time hours after-school and on the weekends. By the age of 18, he’d saved up $20,000 to put towards a house in the Central Coast.
Today, at 27, he’s now added 15 other properties around the country to his portfolio. “Everyone’s got their own thing they’re passionate about,” he says. “Mine is property and investing in real estate.”
The only 3 property buying tips you’ll ever need
Feeling inspired, and ready to buy your own home? Dilleen shares the three factors he says to always consider before buying.
1. Check it has the opportunity for capital growth
First off, he says, always check a property has an opportunity for capital growth. In other words, there must a chance it’ll increase in value.
For Dilleen, that means it must be in or within 45 minutes of a major city, like Sydney, Melbourne or Brisbane. “I wouldn’t buy at mining towns or in the middle of nowhere,” he says. “It has to be in a metro area.”
2. Check it has high rental yield
Next, Dilleen says, a property worth buying must have a really high rental yield. The rent must cover most of the many expenses you’ll be paying: mortgage payments, council rates, water rates, and that’s only the start.
“[A high rental yields makes it so] at the end of the day, I don’t have to pay for holding that property out of my own pocket,” he says. “If anything it gives me income; not takes away from it.”
He notes that expensive Sydney properties or pricey properties in other capital cities, around the $1.5- $2 million mark, often have a really low rental yield. In that case, the rent won’t even be able to cover the mortgage, let alone pay for the other house-owner fees.
3. Always purchase below market value
Lastly, Dilleen says, always buy below market value, also called below comparable sales. He only buys when he’s certain properties of similar caliber sell for a higher price.
“It’s been a big mindset shift over the last 10 years,” he says. “A lot of people think that properties are just one price, but there’s always a range to what a property will sell for.
“It just comes down to a million different circumstances – why the owners need to sell, how quickly they need to sell, the market conditions, time of year, agent selling it, the marketing material.”
He says he always does in-depth research to find out what other properties around the area are selling for, and if he’s getting a bargain. In short, do your due diligence – it will give you the confidence in your decision and the results could pay off long-term.