B Invested

Property investor Nathan Birch hits back at mortgage default reports ahead of Sunday Night profile

NATHAN Birch’s mum still lives in his childhood home in Mt Druitt.

The Sydney investor, who now owns more than 200 properties and claims a net worth of $55 million, started with his first purchase at the age of 18, just around the corner.

Appearing on Channel Seven’s Sunday Night program, Mr Birch and his mum sat down for a lamb roast with reporter Denham Hitchcock, who asked why, with all that money, he hadn’t bought his mum a mansion. “Because mum doesn’t want one,” she said. “My little house is fine, that’s what I always say.”

Mr Birch added that as his mum got older, he planned to build his large “dream home” where she would live with him. “Then I can get food like this cooked every day,” he said.

The 20-minute profile, which features Mr Birch taking a helicopter ride over the Gold Coast to survey his empire of properties — some of which have doubled in value since purchase — comes at a difficult time for his style of investing.

Mr Birch’s business, which he runs with fellow investor Daniel Young, guides young Aussies through the same process he used to make it big — channelling equity from capital gains into deposits for new purchases, a technique which some critics describe as risky.

Last year, a crackdown by Australia’s financial regulators on interest-only and investor mortgages forced the banks to impose stricter lending criteria. Unable to come up with higher deposits or service higher interest payments, many investors bowed out of the market.

That partly contributed to a housing correction which started in the second half of 2017, with national dwelling values slowing in October before turning negative in December.

Owning multiple, highly leveraged properties can quickly go south if interest rates rise.

While banks have already raised rates on interest-only and investor mortgages, the Reserve Bank has not touched the official cash rate since August 2016. Most experts don’t believe the cash rate will move until at least the end of this year, if not later.

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Mr Birch claims a net worth of $55 million. Source:Supplied


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His $200,000 Bentley with the numberplate “CSHFLO”. Source:Supplied


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Mr Birch says he’s not worried about interest rate rises. Source:Supplied


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Mr Birch and reporter Denham Hitchcock. Source:Supplied


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Young investor and Binvested client Rochelle Ryman. Source:Supplied


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Fellow investor Ozkan Dagdasandara. Source:Supplied