Sydney Property investor offloads houses
Young property investor with a portfolio worth $55 million is selling dozens of homes because of a ‘changing environment’ – as experts predict Australia’s property bubble WILL burst.
- Nathan Birch, 32, who has a portfolio worth over $55million is selling off dozens of houses
- He has made his fortune buying houses at the lower end of the market, predicting values will increase
- In a blog post on Mr Birch said the finance environment has changed and he was reacting by selling up
Nathan Birch, 32, has made his fortune buying houses at the lower end of the market and predicting that their worth will increase over the years.
In a blog post on Mr Birch, who runs property investment group Binvested, said the finance environment has changed (one of Mr Birch’s properties is pictured)
In 2008 Mr Birch paid $140,000 for this white house and it is now worth $360,000
Mr Birch just gradually raises the rent in each property as they increase in value.
This method can be successful, but risky, especially if the markets experiences a downturn.
In a blog post Mr Birch, who runs property investment group Binvested, said the finance environment has changed.
Also in Penrith in Western Sydney, NSW, the real estate developer paid $248,000 for this house and it’s now worth $550,000
‘I want to keep moving in a market where almost every investor is stuck in the mud – even if that means selling to get into a new position.’
In terms of what the 32-year-old is putting on the market, he said:
‘I’m looking to sell some regional properties and certain metro properties that I feel have peaked in the current cycle and I can redeploy the funds to better suit my advanced strategy of developing with cash.’
This comes as house prices are forecast to plummet over the next two years.
House and apartment prices in Sydney should drop by about five per cent by 2020, while Brisbane and Melbourne will experience weakening apartment markets.
Mr Birch uses the buy and hold method, where an investor buys stocks – in this case property – and holds on to them for a long time
Young Sydney property investor Nathan Birch, with a portfolio worth over $55million is selling off dozens of houses after experts predicted the bubble is soon to burst
It follows a period of enormous growth in Sydney, with median house prices jumping by 81 per cent in the last five years.
BIS analyst Angie Zigomanis said a decline in interest from investors struggling to secure home loans would be one of the driving factors behind the property slump.
‘A tighter lending environment will affect Sydney more than anywhere else because that’s where the bulk of investors were buying and where they put in the highest price offers,’ Mr Zigomanis said.