Time is an invaluable resource in real estate investing and Tim Lewinski, 28, is proof that starting young will offer more opportunities for growth.
Lewinski, who will be celebrating his 10th year in real estate investment space next year, currently owns 15 properties across Tasmania and South Australia. It may sound like a smooth journey to get here, but Lewinski admits that he has largely underestimated the time, effort and money required to complete his first renovation project for growth to grow. ; age 19.
"Although the property was fantastic and helped me reach my long-term goals early, it required so much work. With hindsight, the work far exceeded my skills at the time" he says. "Fortunately, I was able to lean on friends and family members who had traded before. They were able to give me advice and help when possible . It was definitely a learning experience. "
Evolving investment strategy
Renovating for growth had been Lewinski's basic strategy in his early years of investment. When he started investing in Hobart, he thought the only way to get equity would be to renovate.
"I was fortunate to buy several properties just before the takeover of Hobart. This, combined with the value-added strategies that I did for some of my first investments, m & # 39; Really helped build a great portfolio at a young age, "he says. "I saw up to 50% growth in most of my properties in Hobart during this period, which allowed me to recycle the equity and start over."
According to Lewinski, new investors looking to quickly build equity can adapt a renovation strategy for growth. However, as he has learned from experience, this road will take a lot of time, effort and resources to go as smoothly as possible.
"If you are willing to work hard and spend time on it, it will pay off," he says.
When Lewinski succeeded in building equity to finance his next businesses, his strategy shifted towards buying properties with high cash flow. His most recent and best purchase to date was a unit block that brings in around 10%. With this new approach, he intends to diversify his portfolio in several other states.
"My goal over the next five years is to acquire five more properties, so I own 20 properties, all in different states with solid cash flow. While 20 is only a number, this will lead to more trips with my family – maybe a holiday abroad for a long period of time, "he said.
Change in the investment landscape
If there is a significant change that Lewinski has seen during his nearly a decade of investment, it would be the tightening of the lending space for investors.
"Bank service calculators have become much more stringent since I started investing, so overall, I would say that investment has become more difficult, or less more obstacles to overcome. You have to adapt to changes and revise your strategy when market and industry conditions change, "he says.
The COVID-19 epidemic also presented certain challenges which, according to Lewinski, reinforce the need for investors to plan for the worst, economic shocks preventing tenants from paying rent and falling prices for rent. # 39; real estate.
"Even if these scenarios are terrible to think about, I think it is more important than ever for investors to execute these types of scenarios so that they can make informed decisions and weigh all the potential risks. I also think it's always important to have a cash pad for a rainy day, "he said.
Should Recent Events Discourage Real Estate Investors From Participating In The Market? Lewinski believes that there are still markets that offer good investment prospects.
Hobart, for example, still has an active market of homeowners who have missed a property when competition has been fierce in the past three years.
"I believe there are many successful real estate markets and there would certainly be a missed opportunity if you were not to invest in these markets today. If you are comfortable with the numbers, weigh all the risks and are happy, I would go for that, "he said.
