Melbourne renter makes $350k investing in unseen homes
The rentvestor in her 30s said buying in the blue-chip inner suburb she calls home would have derailed her entire financial strategy, that will eventually allow her to buy.
'I could sell everything and own a place in the suburb I want outright,' she said.
'But that would completely defeat the purpose. I'm not chasing the Aussie dream of a white picket fence, I'm building wealth for the long haul.'
Ms Kimberlin has mapped out a long-term strategy with help from property investment advisers OpenCorp, entering the market in Perth and Moama where the numbers stacked up. Her portfolio of three properties, all delivering strong capital growth, has built equity but costs her less than $100 a week to hold.
Assuming a 20 per cent deposit, for as little as $120 a week, using a rentvesting strategy, OpenCorp are securing properties for $600,000 –$700,000.
With another rate drop anticipated, this holding cost could be as little as just $100 a week for a $600,000-$700,000 asset.
Her portfolio of three properties has built equity but costs less than $100 a week to hold.
Her Perth property alone has risen in value by $350,000 in four years, she said.
'I've never even seen it, that's how unemotional the process was,' she said.
'I wasn't buying a home, I was buying a stepping stone.'
New data shows houses in Melbourne's inner city ring were out of reach for first-time buyers without family help, with even unit prices regularly topping $700,000.
But Ms Kimberlin, who works in Melbourne's sporting precinct, said the area ticks every lifestyle box.
'I grew up in the country, so if I'm going to live in the city, I want to be right in the heart of it,' she said.
'I love being able to walk to work, to the gym, to games at the MCG, it's perfect for where I am in life.'
While friends her age have taken out larger mortgages for homes in Melbourne's middle ring, Ms Kimberlin said she chose to prioritise flexibility and future growth.
'I have friends who stretched to buy and now can't go on holidays or even enjoy their home properly,' she said.
'I did it differently, and it's changed my life.
'I've built equity, I've kept my lifestyle, and I'm not tied down by a huge loan.'
She said many people still got caught up in emotion when it came to their first home, aiming for a suburb first, then scrambling to make the numbers work.
'Your first property doesn't have to be your dream home, it just has to make financial sense. Then use it as leverage.'
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