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You do not want to miss this episode. This episode features a valued client from InvestorKit, Nafis. He's been on the journey with us since 2019, and his story is just phenomenal. Someone in their mid-20s started with their first investment, and it could have gone very, very wrong. However, it didn't.
And in this particular episode, we're going to break down what happened versus what could have happened and how it's been a difference of a million dollars in equity gain. Now, Nafis has built a portfolio with us of five properties, and he's just turned 32, which is a phenomenal achievement. So jump into the episode where we dive into his portfolio journey, the million-dollar mistake that he's avoided, and also where we've taken his portfolio to today, including what's next and the X factors to getting there. So tune in to another episode of the Property Nerds podcast. Nerd alert!
Property Nerds, the home for data-driven property investors, where we uncover Australia's hot and cold markets, latest headlines and trends. Nafis, welcome to the show, my friend. You're officially a property nerd. Welcome, welcome. Oh, thanks, mate.
Nice to be called a nerd. Man, we've had a journey together now coming towards seven years, and I just want to say a heartfelt firstly thank you for trusting me when we first kicked off InvestorKit back in 2018-19. Man, what a journey it's been. So I guess I thought we'd chat today to go firstly back to where it all started. And even before us, I want to get into your mind in terms of what were you thinking?
Like before you go working with us, like where was your head at at that point? I was in my mid-20s back then, so a bit older now, but I just wanted to kind of get my financial situation sorted. I grew up working class in southwest Sydney, and my parents, they worked quite often one, two, three jobs at a time just to make ends meet. And it's kind of like that classic migrant story where they come from overseas. They're actually very educated, come from well-to-do families overseas.
My background is Bangladeshi, but then coming here, they're kind of starting from ground zero. So they just had that work ethic that really instilled in me. And I saw them struggle, so I just thought, okay, well, I don't want to be in the same position. I've got a massive leg up, you know, living in Australia, being here my whole life. So why not take advantage of it?
And I felt like up until my mid-20s, I was kind of on the right trajectory. I was reading, you know, finance books, listening to podcasts, you know, Rich Dad, Poor Dad, Robert Kiyosaki, all that kind of stuff. Yeah, classic. So I was investing in shares, but then I think I just felt like it wasn't moving quick enough. And so I just started to go out on weekends by myself.
I'd have a full list on a notepad and pen. It's a bit old school, but just all the properties I'm going to go inspect. I was looking at two-bedroom apartments anywhere as close to the city as possible that was within my budget. I was looking at, you know, today you probably get nothing, but I was probably looking at like 500 to 550K properties, two-bedroom apartments. Most of them were like 1970s apartments in areas like in New South Wales, Rockdale, Kempsey, Panania, things like that.
Yeah. And yeah, just kind of like, you know, just going to open homes and killing time in between the inspection. Some of them were like two, three hours apart. So you're probably committed to that journey. Yeah.
The search, the hunt, the I want to get engulfed in like property learning, property inspections. Like where did this bug come from? Because obviously shares and stocks and things were your first go. Moving quicker seemed to be a thing that you wanted to do. But where did that interest in property come at that point?
Probably two things. First thing, just growing up in Australia, like we have this fascination with property as like a vehicle to accelerate wealth. And then just secondly, for myself, I felt like shares wasn't growing fast and through just, you know, self-education and self-development content, absorbing that, I just saw that if I could buy property and use leverage, so, you know, borrowing money from a bank, then the cash on cash returns is much faster. Like if I had 50K in the share market, it grows by 10%. That's 5K, you know, net increase.
But if I have 500K in a property and it goes up 7%, that's 35 grand straight up. So it's just a lot quicker just because of that leverage. That leverage masterclass, right? Yeah, exactly. So that was like, okay, it's a quicker way to go about it.
Yeah. Now, when it comes to the decisions, you obviously didn't make that decision, which, you know, touch wood. That's great. But I want to know what made you go to the other side? Because now you've gone from DIY, running through opens, back to back to back, checking out properties behind, actually in your backyard, right?
Everything, this is where you're thinking of to going, let me now go to the professionals and the other side of the country. So where did this flip happen for you to go from units, backyard investing, DIY day to day to professional support, other side of the country, a house? Yeah, I think two things. There was that Facebook group that we're in. So I'd ask questions in it all the time.
I'd see other people respond. I saw you respond a lot of the time and you'd always give very detailed, eloquent responses. And this was pre-chat GPT. So, and this was at the start. I had to do the work.
Yeah, so you did the work. I'm like, all right, this guy's, you know, he's being legit here. And then just having that conversation with people online and people who are ahead of me in the journey as well and just seeing them do well for themselves. And then secondly, there was this podcast I used to listen to a lot and they would always talk about the benefits of using a buyer's agent, having a mortgage broker, having an accountant, you know, things like this, having a professional team around you to help you. And it just made sense to me.
I'm lazy by nature inherently. So I just wanted to pass on the work to other people who can help me and back me and also have that peace of mind that people who are much smarter than myself and much more, like they have that expertise in that area working in my corner rather than me just trying to figure out things myself because I have a full-time job myself in a completely different area. And, you know, life gets in the way, social commitments, family commitments, things like that. So I just felt like I wasn't giving it 100%. So I'd rather reach out to people who know what they're doing and then I have that in the background.
Now, may fast forward to today, you've built a portfolio of five properties now. Coming up on five, yeah. And I want to know that 2018-19 Nafis, what was his why? What was his thoughts when he was building a portfolio? What were these things that were important to you?
Because now in five properties later, you know, seven figures in equity gain across the portfolio, everything's really building up for you. What was that big why? I think going back to my parents, so seeing them struggle, not wanting to be in the same position when I grow up and have my own family, but then also try to be that reliable son that can look after my parents, you know, if needed, look after my siblings, but they're doing well in their own rights, having, you know, grown up here and being professionals themselves. But just being that dependable son that can, you know, back my family whenever needed in future. And then also with my wife in future, if we have our own family, also just be someone that can provide and look after our family for the future as well.
That's probably my biggest why. Nafis, mate, how has your life changed outside of property investing? Like with all these moves that you've made, surely it's kind of made you feel a little bit better about your financial security and retirement and stuff like that. Absolutely. Yeah, in terms of, I guess, day-to-day anxiety about personal finances, not so much anymore.
Like, yeah, I don't feel well off because I have a lot of debt, but then... Jack loves debt. Yeah, I mean, you've got to love debt over time. Like it is something that people struggle with, especially at the start of the journey. But I think day-to-day, I do have a lot more peace of mind.
I used to be very frugal. I think I'm not like an exorbitant spender or anything like that anymore, but I'm a lot less frugal now where I can actually enjoy some things in life from time to time. Yeah, like, you know, whether it's going out for a nice lunch or a nice dinner, you know, going on holiday, you know, with my wife or like, you know, taking my parents out to, you know, like a nice dinner or something like that. That's nice, of course. So, yeah, the day-to-day mental peace is there.
I just know that you need to, you know, I've planted the seeds, I've added the water. Now I've just got to let time let it grow, let it do its thing. So I'm kind of in that position now where I mentally, they get a little bit scared. They don't stick the path of executing on their actual plan that they designed at the start. Let's be honest, spreadsheet fatigue is real.
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Head to investikit. com. au, link in the show notes. Nafis, I mean, on that time, it's like six years now of us working together. Like, if I just timeline this journey out, it's pretty special.
Like, 2019 was the first purchase in Brisbane. Yes. It was around $418,000. Yeah, $14,500. Good memory.
Yeah, there you go. Good memory, right? So, you know, fun fact, like, I can remember almost over a thousand purchases we've made. We've done over 2,000, but it's wild. Well, that's good.
That's going to keep your brain sharp. I wanted to ask, like, that property in your latest valuation, if I'm not mistaken, came in the 900s or around that? Yeah, I think like around high 800s now, last time I checked, yeah. That's huge, right? So, not even doubling in 10 years, we're talking in five years.
Yeah, Queensland's done very well. Then you went over to Adelaide next. That was purchased in the high fours, if I'm not mistaken? Yeah, $492,000. $490,000?
Yeah. And what was the latest valuation on that for you? $797,000. Unreal. Unreal.
So, now you've gone from Adelaide. I think the one after that was in Townsville. Townsville, right. We'd purchased that in the 440s. Yeah, that's right.
What was the latest valuation for you in there? $660,000. Yeah. So, I'm going through these purchases because from there we go to WA. Yeah.
And what I want to point out, and I think the most recent one was in Victoria? Yeah, settling soon. Yeah. We just exchanged last week, so settling in mid-June. So, this is another thing.
This portfolio diversity that you've got is something I always tell investors to keep front of mind. And part of building that resilience you've spoken about before as well is about having an investment portfolio that does the diversity piece or the resilience piece for you. Yeah. Because now it's like you've got finals Queensland, Southeast Queensland, Western Australia, Victoria, and South Australia. Like multiple states, diversity, higher yields, affordable assets.
I mean, how do you feel when you look back at the strategy now going through all these? Did you think of that strategy when you first started or has this evolved as it's come up? And how are you feeling about the strategy looking back at it all? Yeah, it's great in hindsight. But at the time, I remember I'd always like badger you about why are we buying in Sydney or near Sydney?
Because I just don't know these areas. It gave me like a bit of anxiety thinking, okay, I don't know what's in the middle of regional Victoria or regional WA. But the numbers have done well. They speak for themselves. But I always thought, okay, let's buy in Sydney or Melbourne or Brisbane or let's just buy in the cities or near the cities, suburbs of the city.
So, in hindsight, the strategy has worked really well. We've diversified. So, with the regional WA purchase in January this year and the regional Victoria purchase to settle in mid-June this year, really diversified now. We're across what? Queensland, South Australia, Victoria, WA.
That's four different states. That's unreal. Yeah. So, yeah, I think as a New South Welshman, still haven't cracked New South Wales. That's on your list to see.
It's on the agenda. But ideally, it's a principal place of residence to live in Sydney for my wife and I. But yeah, definitely feel like the strategy has worked. I'm definitely someone that likes a bit of the risk mitigated. So, through diversifying the portfolio by having it across all these different states, having city, suburban, and then also regional, that also helps.
So, I think and also just the various life cycles of the property market, whether it's boom phase or it's a bit more mature now. So, yeah, I think for a rainy day, we're in a good place. And yeah, that's testament to the InvestorKit strategy. Yeah, you mentioned you had a wife. How does she feel about inheriting all this debt?
That's a good question. I think to her credit, she was probably a bit easier to come along for the journey maybe compared to some other people and other people's partners just because she had invested in the past herself. She hadn't done too well. She did that very typical thing that she just bought what her parents advised her to do. So, she just fronted the deposit by saving while she was working.
But her parents chatted with real estate agents and pretty much sorted it and told her just to sign. But she bought in areas that were high-density apartments and new apartments. And in hindsight, the capital growth really wasn't there where it was either no capital growth or the capital growth was so minimal that after real estate fees, land tax, etc. , all these additional costs that you have, solicitor fees, she was like net even. So, I think she was open to coming along the journey with me because she is familiar with property and it's really something that her parents are really into as well.
They love property. But I think with her, she's happy for me to kind of take the lead in that situation. And I definitely respectfully always involve her. I want her to be across it. And if I get hit by a car tomorrow or something like that, I want her to kind of be at a place where she can run things herself and she's not feeling like, oh crap, I've got all these things to do.
I don't know where to start. So, I've really just made a concerted effort to bring her along for the journey and try to educate her as much as I can. That's within her realm of interest because I also know that I am a bit of a property nerd. And she might not be as interested at times as me. So, I bring her in when she likes to be interested in the topic.
Well, mate, I mean, me and Adrian have been chatting on something that you've got to check this out. I haven't spoken to you about this in the past, but it's like when we show you this today, your mind's going to be blown. Now, we talked about some of the properties we've purchased together in the five places. Now, fun fact, it's around a million dollars in equity gain when you add up the assets across Brisbane, Adelaide, Townsville, and then also regional Victoria now, you're coming through and WA. That's massive for someone.
Have you crossed 30 yet? I am 30. I'm 32 now. 32 now. There you go, man.
So, just crossed 30s, started mid-20s. We want to give you a bit of a time machine. We're going to take you back in time to 2018. We're going to imagine we never met. We're going to imagine you never had any thoughts on using a professional.
And you went back in time. Adrian's going to tell you. Absolutely. And it's funny you mentioned about your wife making the decision to purchase the apartment because that was exactly what you were thinking of doing at the time, right? You were at that decision point of, should I purchase the apartment or should I go on this, you know, take the leap of faith and trust this man over here with your journey?
But look, if I give you some numbers, and I'm actually not going to compare all five properties. I'm going to just compare the three first properties that you had and how that compares with what you could have done with the apartment. So, the apartment that you were going to purchase, let's call it, you know, West. I think you mentioned it was about 20Ks into the West, around that kind of area. That apartment, in terms of median price, it's actually gone down.
Okay. It's lost value across this whole time. So, what I did is, as a calculation, gave it a little bit of a benefit of a doubt and kept it the exact same value for today. And then we projected it from 2018 to 2028. 10-year time frame where we're comparing the two scenarios.
If you did that, your apartment in 2028 would be worth $597,000. You would have made $147,000 equity. Sounds all right. And that's just assuming 3% growth from today till 28. In terms of the scenario that you actually went down and, you know, what you've managed to do with your portfolio, same exact time frame, but with the results that you've got and what we've assumed is 5% growth for your assets.
I know they've done a lot better in the past. Being conservative, I would say. If going forward, hey, just assuming a conservative 5% growth there, the value of it is $3. 05 million in terms of portfolio value. Equity is $1.
52 million. So, the difference, how much difference do you think that is? Oh, that's like $1,350,000 or so, roughly. Yeah, we're sitting at close to $1.
