{"id":20778,"date":"2018-04-27T01:00:25","date_gmt":"2018-04-26T15:00:25","guid":{"rendered":"https:\/\/realestatetalk.com.au\/?p=20778"},"modified":"2018-04-27T01:00:25","modified_gmt":"2018-04-26T15:00:25","slug":"2017-investor-of-the-year-paul-smith","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/2017-investor-of-the-year-paul-smith\/","title":{"rendered":"2017 Investor Of The Year: Paul Smith"},"content":{"rendered":"

Paul Smith came into the property game looking to play it safe. A plumber by trade and the owner of a small to medium-sized plumbing company, he had been seeking a way to make some investments that would ultimately allow him to get out of the rat race.
\n\u201cI believe that property investing, when done correctly, is the safest way to invest,\u201d he says.
\n\u201cMy wife Sandie and I wanted to build a diverse portfolio that would perform during all financial seasons and set us up for early retirement.\u201d
\n\"\"
\nAT A GLANCE<\/strong><\/u>
\nYears investing:<\/strong>\u00a05
\nCurrent number of properties:<\/strong>\u00a05
\nPortfolio value:<\/strong>$2,599,000
\nPaul started his journey by attending property investment seminars. Unfortunately, he learned the hard way that many of these so-called free-information nights are simply a way to get unsuspecting, na\u00efve investors through the door and use manipulative high-pressure sales tactics to influence people to buy product.
\n\u201cI believe that dealing with client-focused professionals, both brokers and planners, who can not only assess our situation and tell us our borrowing power but also identify risks prior to investing, is very important,\u201d he explains.
\nPaul\u2019s first investment property was actually his \ufb01rst personal home in Currens Hill, NSW. After he and his wife, Sandie, moved to Harrington Grove in Harrington Park, NSW, they realised that there was value in keeping the Currens Hill house as a rental property, and made their very \ufb01rst foray into investing.
\nLimiting costs<\/strong>
\nPaul went on to buy four more investment properties in NSW, Queensland and most recently Victoria. Buying interstate is a diversfication strategy designed to manage the risks of property investing, though Paul also asks his financial planner for a risk assessment statement prior\u00a0to signing on the dotted line for a new property asset.
\nIn the process of obtaining advice, Paul was also able to determine that a good strategy for him involved purchasing new properties that were less than three years old.
\n\u201cBy buying new, we are not affected by new depreciation laws, we have no maintenance costs, and we attract great tenants. Not to mention [we are] saving on stamp duty on the build.\u201d
\nHe chooses to look into house and land packages so he can build the properties himself, or dual-occupancy properties located in growing suburbs.
\n\u201cWe look for 4\u20135% rental yield, quality builders and value for money,\u201d Paul says.
\nHe also seeks out dwellings near amenities in order to maximise value. A property that\u2019s either within or just 10km from a CBD is ideal, especially one near schools, public transport, shops, recreational spots and hospitals.
\n\u201cWe don\u2019t buy in high-risk areas such as boom towns or areas with a low socio-economic population. We aim for areas with high principal place of residence ratios.\u201d
\nTo determine growth potential, Paul looks at past capital gains figures, as well as changes in the median prices. He also compares the prices and rental returns of properties in the same area.
\n\u201cWe purchased a property in Harrington Park, NSW, for $420,000 back in 2014, and it was valued just recently at $750,000. This property is located within walking distance of the new Narellan town centre, with restaurants and nightlife as well as schools, lakes and a nearby shopping village,\u201d Paul says.
\nWHAT DID THE JUDGES SAY?<\/strong>
\n\"\"<\/strong>\u201cI like that his approach is driven by numbers, and his clear strategy that comes with it. He has good knowledge of investments and surrounds himself with good people. Best way to avoid mistakes!\u201d
\nPhilippe Brach<\/strong>
\nCEO of Multifocus Properties & Finance
\n\"\"<\/strong>
\n\u201cPaul has a very well-thought-out strategy, which includes a rating system to assess properties. This is a very good idea and takes away the emotion when investing in property\u201d
\nTyron Hyde<\/strong>
\nDirector, Washington Brown
\n 
\n\"\"<\/strong>
\n 
\n\u201cPaul\u2019s portfolio will have great ongoing depreciation advantages and low maintenance costs, being all new builds. Clever purchases across three states will ensure that the risks associated with these investments are well diversified. Overall, a sound, balanced portfolio\u201d
\nClint Greaves<\/strong>
\nCEO, Real Estate Investar
\nPORTFOLIO TIMELINE<\/strong><\/u><\/p>\n

2007<\/strong>\u00a0– Buys a property in Currens Hill, NSW, for $330,000
\n2014<\/strong>\u00a0– Makes his most successful deal in Harrington Park, NSW \u2013 a house and land package that appreciated by $330,000
\n2014<\/strong>\u00a0– Purchases a commercial unit in Minto, NSW
\n2015<\/strong>\u00a0– Buys first interstate property in Leichardt, Qld
\n2016<\/strong>\u00a0– \u00a0Succeeds Graham Mirabito as CoreLogic\u2019s managing director in Australia and New Zealand
\n2017<\/strong>\u00a0– \u00a0Purchases second interstate property in\u00a0Sunbury<\/a>, Vic<\/div>\n

\"\"
\nGetting the right advice<\/strong>
\nWhile his mentors helped a great deal, Paul didn\u2019t always get the best advice from his sources.
\n\u201cOur biggest mistake was attending property investment seminars that turned out to be run by high-pressure spruikers,\u201d he admits.
\n\u201cWe found out the importance of dealing with client-focused companies as opposed to product and commission-driven spruikers that exist in the industry. We also learned there is no such thing as a perfect investment or a once-in-a-lifetime opportunity,\u201d Paul explains.
\n\u201cWe aim to get to the truth of whether a product is right for us and our current situation, and ensure we deal with qualified professionals every step of the way. We use a lawyer to conduct the sale of the property and sign off \u00a0on legal docs for our protection, and ensure all contracts are subject to finance.\u201d
\nFor Paul the best way to manage risk is to have the right people on your team, who work with integrity. A team member he\u2019s found to be very useful is a good property manager.
\n\u201cThe last thing you want when you have a larger portfolio is to have to stress about maintenance and tenants. Much like an entrepreneur, you need to learn to delegate,\u201d he says.
\n\u201cThere is a saying in the business world: \u2018Work on your business, not in your business\u2019. I believe this is true in property, too.\u201d
\nCreating wealth<\/strong>
\nThough Paul has spent most of his investment journey looking for properties close to home in NSW, he has also enjoyed branching out into other parts of the country.
\n\u201cSydney is at the top of the property clock at the moment, meaning prices are very unaffordable and rent returns didn\u2019t stack up,\u201d he says.
\nInstead of searching for the perfect deal, he seeks out diverse, well-researched opportunities.
\n\u201cBy looking into Queensland and Victoria, for instance, we were able to continue to invest without maxing out our borrowing power or becoming cash flow negative. We also believe strongly in diversification and didn\u2019t want all our eggs in the New South Wales basket, Paul says.
\nAt present, his portfolio is well on its way to performing effectively through all seasons, bringing him closer to his goal of early retirement.
\nPaul has also diversified in a business sense, after beginning working with entrepreneur David Pascoe in 2015. \u201cHe has been a huge help and mentor. I have since bought into his company and am a proud franchisee of Buy Australian Properties.
\n“I have a great desire to grow wealth for my family, and this also allows me to fulfill my passion of helping others safely invest.\u201d<\/em><\/strong>
\nOriginally published by:\u00a0https:\/\/www.yourinvestmentpropertymag.com.au\/success-stories\/2017-investor-of-the-year-paul-smith-246214.aspx<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Paul Smith came into the property game looking to play it safe. A plumber by trade and the owner of a small to medium-sized plumbing company, he had been seeking a way to make some investments that would ultimately allow him to get out of…<\/p>\n","protected":false},"author":176692471,"featured_media":20779,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[13,25,31],"tags":[70],"class_list":["post-20778","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-story","category-sponsored-channels","category-your-investment-property","tag-featured"],"yoast_head":"\n2017 Investor Of The Year: Paul Smith - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/2017-investor-of-the-year-paul-smith\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"2017 Investor Of The Year: Paul Smith - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"Paul Smith came into the property game looking to play it safe. 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