Australia has more than 2.2 Million investors, with only 0.9% holding six or more investment properties. Our esteemed clients Sudhir and Meena are amongst them.
Over the last 20 years, Sudhir and Meena were able to build a portfolio of 7 properties valued over 3.1 million dollars. When they decided to partner with SONI Wealth, their entire portfolio was reviewed professionally for the first time and they were presented with a strategic plan for each property. Since working with our team, 3 more properties have been added into their portfolio.
Becoming one of the top investors in Australia while raising two children is not easy. In today’s blog post, Sudhir & Meena share the highlights and pitfalls of their investment journey and demonstrate that with determination and the right guidance, financial wellbeing is an achievable dream.
LEARN MORE ABOUT THEIR JOURNEY
When did you buy your first home? How much did you pay and how much were the interest rates at that time?
We bought our first property in 1990 for a meagre sum of $106,000. We sold it in 2003 for $250,000. The property seemed very expensive at that time since the interest rates were almost 18%.
When did you start investing and why?
My wife and I started investing in the year 2000, when I was 40 years old. Property investment is a joint effort, and we both had a firm belief that plenty of wealth can be created through property investing. We were also interested in minimising our taxes.
How much did you pay for your first investment property and how much is it valued right now?
We purchased our first investment property for $198,000. It now has a value of $750,000.
Interest rates now have never been so low. In 2000, mortgage rates were higher than 8%. In your opinion, what are the main differences regarding property investment over the past 20 years?
These days there is a great amount of content available on property investment. In the past, we used to attend paid seminars to get information. The people I met were only interested in selling you a property, so the relationship between the real estate agencies and investors was limited to signing the contract. As you mentioned, interest rates are significantly lower in present times in comparison to 20 years ago and there is a lot more professional help and information available to make an informed decision.
When we look at prices in the past, everything looks cheap, but it may be a wrong impression because the value of money has changed. When you decided to invest, did it seem an expensive purchase?
Yes, of course. Whenever you buy a new property, it seems expensive as it is a significant investment. We had taken a decision to leave a number of properties (a $150,000 apartment in St. Kilda and a $215,000 house in South Morang on a large block of 600 square metres unheard) because we thought the prices were too high at that time (2001/2002).
What were the key achievements and some mistakes during your investment journey?
I believe that the most pleasing part was to be able to continue the property investment journey in spite of some wrong decisions along the way. We only purchased a few properties over the years. For me, the key mistake was not to start investing in properties earlier and being indecisive at times resulting in missed opportunities.
Have you ever made an incorrect purchase or sale?
Yes. Buying a property in a retirement village in Brisbane, for example. Despite having a great location (just 2 minutes to the beach), such properties hardly go up in value. Luckily, I sold that property in 2019. We also purchased a property in a mining town in South Australia (Whyalla) in 2013. The company I bought that property with had done the due diligence, but this property has not gone up much in value since then.
Considering your experience, what are the benefits of investing with professional assistance (compared to investing on your own)?
You can make an informed decision with the right information from a credible resource. Having a proper mentor is essential. Most people who invest on their own, struggle to grow their portfolio. Since I met Chirag, I have not looked back.
When it comes to results, how has SONI Wealth helped you so far?
They helped me acquire three more properties when I believed I could not grow my portfolio any further. When I came to Soni Wealth, I had only four properties and had recently lost my job. It can be challenging to get a loan without employment, so without assistance I would probably have given up. Chirag made it possible with helping me acquire three more properties once I got back into work.
What is the importance of financial education for someone who is already an investor?
It is significantly important as it helps you in making better decisions without being fearful. When you understand the financial process, it makes it easier for you to take action and make smarter decisions.
If you could go back in time, what could you have done differently?
I would have bought the properties that I rejected and would have been more aggressive in investing.
What is the importance of your portfolio in your lifestyle?
Having a portfolio has opened up more choices in my life as I can limit my working hours due to the additional income we earn from the investments. In other words, I am able to maintain the same lifestyle as if I was still working full time.
You and Meena raised two kids while investing. Have you and Meena ever felt that you had to choose between investments and your family financial commitments?
We did not have to choose between investments and family commitments. Our children went to semi-private schools and we had a lot of holidays together. Most holidays were because of good tax refunds, and that was possible because of the investments. The rental income kept increasing and the cashflow made it possible to pay off the expenses of having a great lifestyle for our family.
What would be your advice for aspiring property investors?
Start early. Set goals. Take action.
Get professional help. Education will help remove any fears you may have about investing. So, get educated as much as you can.
Make sure you have a proper team and a mentor to guide you throughout the whole process.
Sudhir is a chef by training, with an affinity for preparing delectable food of various cuisines. His real passion, however, is property investment, where he is seasoned and accomplished. Currently a semi-retiree, Sudhir devotes his time as a full-time investor and a wealth educator with SONI Wealth. He is passionate about using his experience to guide people through the investment journey and above all, relishes seeing them come out on top.