Matthew Curran (pictured) has built a multi-million dollar portfolio, acquiring over a dozen properties over his ten-year investment journey – and seasoned investor attributes his success to his strong strategy and ability to focus on the most important things in life.
"The biggest challenge [in property investing] is being satisfied and not over-committing," he says. "Accepting your abilities and the limits of your income and having confidence in your investment strategy will go a long way."
Curran's foray into real estate investing began in 2004, with the purchase of his first property in Keysborough, Victoria. Since then he has accumulated a mix of homes, apartments and development sites, most of which are income generating, allowing him to spend more time with his family.
"My ultimate goal is to live debt free, have passive income, and not have to get up every morning and meet a boss," he says. "I want to be able to provide my family with the things they need, and maybe some things they want, without having to spend more than 40 hours a week in the office."
Curran says he is saddened that many investors are too caught up in the future to forget to focus on what is important in the present.
"Investing is a long-term business," he says. “So you have to take advantage of your time along the way. Don't lose sight of him. Always try harder, but not at the expense of your life today or tomorrow. "
Buy, keep, sell
Over the years, Curran has been able to refine and evolve his buying, holding and sometimes selling strategy to benefit from capital growth.
"My strategy is to acquire properties with good rental returns and medium to moderate capital growth," he says. “I'm looking for properties with more than 6.5% return after fees. Rents should more than cover expenses and loans if there are any. "
Curran cautions that investors should not change strategy too drastically, especially if the strategy has worked for them.
“The successful investors that I have seen over the years are the ones who continue to refine their current strategy; not the ones who keep chopping and changing every time they hear about a new big investment idea, ”he says.
Curran adds that his investment strategy is not entirely geared towards retirement.
"Real estate investors find themselves in high debt and interest commitments over a long period of time, believing that the higher the value of their portfolio, the more they will be worth in retirement," he says .
"During that time my wallet will earn me enough money so that I can live a comfortable life without having to work, and the sooner I can get there the better." But it won't be by sacrificing things while living my life. Life is too short not to enjoy things along the way. "
Multi-million dollar portfolio
Curran’s current portfolio certainly reflects the success of his investment strategy. He now owns 12 properties with a conservative value of $ 3.9 million. All generate income with the exception of the Capel Sound, Victoria home which he purchased last year.
"I plan to sit on these regional properties for now," he says. "Since they have no debt and generate between $ 7,000 and $ 9,000 each per year, they allow me to enjoy my current lifestyle."
Curran says he is also aware that many investors "avoid" regional properties because they provide limited capital growth.
“I don't totally disagree with them,” he said. "However, if you are buying these properties with cash or without any bank loans, these are very good investment options and should be part of your portfolio."
His advice is to avoid borrowing more than 25% as "the feasibility is considerably lessened".
As for the Capel Sound property, Curran says it was a "calculated bet". The house was built in 1955 and he has already obtained permits for two units to be built behind the property. But he was rejected by the board and had to argue his case in the Victoria Civil and Administrative Court, which he successfully did.
Curran spent approximately $ 150,000 renovating the interior of the house. The initial valuation without the two additional units is over $ 1 million.
Journey to Fatherhood
One of the things Curran has made clear about his real estate investing journey is that he does it for his family. But he had almost no family of his own.
"Everything I have done over the years came to a screeching halt when our doctors told us we couldn't have children," he says. "I wondered why I had worked so hard for so long and if I just had to pack my bags and travel the world for the next few years because nothing was holding us back."
But passionate about children, Curran and his wife chose to undergo expensive procedures to improve their chances. Fortunately, having solid investments meant they could afford the expensive treatments. And last month their daughter was born.
"For me it's a success," he says. “We hardly had a family. But thanks to hard work, dedication and a good investment base, we were able to achieve something very special. When I am lying in my bed, I feel that all of this hard work has paid off. "
Curran says fatherhood motivated him to do more, but that wouldn't change his approach to investing. "Amazing! Overnight, I just want to try and give my daughter everything. That being said, I'm not trying to make it happen overnight. Slowness of persistence remains the key to one. successful investment. ”
Currently stranded in Ukraine, where his wife gave birth, Curran says his priority is to bring his family back to Australia.
"I will spend the rest of the year at home with my family, just to keep them happy and my baby fed, so she doesn't cry out for a feed," he says.
Curran says he doesn't have anything planned for next year yet, but he plans to renovate a few properties.
I think the market will rebound three months after the COVID-19 crisis is over, so now is a good time to buy, ”he says. “But I'm going to stay seated for now. No need to over-commit just yet. I will settle down first with my family life. "
Top Real Estate Investment Tips
Curran believes that anyone can achieve the same level of success, but it takes commitment. He shares these four simple tips that can lead to success:
Work hard.
"You will have to make sacrifices, but don't let that get between you and your life."
Do not live beyond your means.
“Be happy and content with life. You don't have to try and keep up with the Joneses. "
Have good accountants and property managers.
“They were able to point me in the right direction, making even better decisions on taxation and ownership. You need the right people on your side to be successful. "
Have a long term goal and work on it.
“Adapt your strategy to the current economic climate and your lifestyle.”
Curran's portfolio:
Suburbs
State
Type (house, unit, townhouse, land)
Year of purchase
Purchase Price ($)
Present value ($)
Gross rental yield (current) ($)
Estimated expenses per week ($)
Rent per week ($)
Clayton
VIC
House
2010
$ 525,000
$ 900,000
PPOR
Capel Sound
VIC
Unit
2017
$ 400,000
$ 450,000
4.4%
40 $
$ 310
Noble Park
VIC
Unit
2007
$ 191K
$ 410K
3.7%
$ 60
$ 310
Ararat
VIC
House
2018
$ 113K
$ 137K
8.0%
$ 30
$ 185
Mildura
VIC
3 units on a block
2018
$ 330,000
$ 375,000
8.0%
$ 50
$ 550
Churchill
VIC
House
2019
$ 155,000
$ 160,000
5.6%
$ 45
210 $
Mildura
VIC
House
2019
$ 145
175,000 USD
7.3%
$ 45
$ 250
Capel Sound
VIC
Home / Development site
2019
$ 630
$ 1.05 million
$ 80
Morwell
VIC
Unit
2020
$ 111.5K
$ 111.5K
6.5%
40 $
$ 180
Morwell
VIC
Unit
2020
$ 110,000
$ 110,000
6.1%
40 $
$ 175
