Home' API Magazine : January 2015 Contents JANUARY 2015 n APIMAGAZINE.COM.AU n 19
ate purchased her first property at
the age of 25 after her boyfriend
Tim (now husband) encouraged
her to find a hobby.
“I couldn’t think of anything I was
more interested in than property, so I
decided property investing would be my
new hobby,” she says.
An avid reader of property books and
API of course, Kate, who is a campus
manager of a training organisation, was
passionate about property investing
before she took her first step into the
real estate realm. Having great support
from her husband and family always
“Dad’s always supported my interest
and enthusiasm for investing from a
young age,” she says.
“He’s taught me to prepare for the
lean times by setting aside a buffer, and
to prepare for interest rate increases or
unforeseen expenses. This advice has
definitely helped me sleep at night.”
Kate’s first purchase was located in the
Brisbane suburb of Kelvin Grove. The
suburb has great proximity to the CBD,
located only three kilometres away, and is
also home to a well-known university.
The successful prospect was a four
bedroom, two-bathroom house, which
also included a self-contained unit
located underneath. Kate snapped up the
property for $585,000 with a 10 per cent
deposit she’d saved.
“I knew what to look for and when I
found it, there was no hesitation. It was
a lot more than I was expecting to spend
on my first investment property, but the
figures stacked up so I was happy to pay
the price,” she says.
The combined rental income from the
house and self-contained unit meant the
property was cash flow positive.
“ The market was pretty flat at the
time and I didn’t want to rely on equity
growth, I wanted a property that was
going to make us money from day one. I
knew what my investment strategy was:
positive cash flow!”
Kate returned to Kelvin Grove again
in 2011 when she was ready to go for her
second round. This time her parents went
guarantor for a 20 per cent deposit on a
five-bedroom, two-bathroom house she
secured for $690,000. It was her second
positively geared property and Kate says
it ticked all the right boxes.
“Close proximity to the city, a
university, hospital, etc. High rental
return, low vacancy rates, and potential
to improve the value,” she says.
Kate ventured into a different location
for her third purchase in 2013, this time
Brisbane’s inner-city area of Fortitude
Valley. She’d saved a five per cent deposit
plus the purchasing costs. The property
was a dual key unit that Kate purchased
Ultimately, Kate would like to own a
diverse property portfolio.
“I started buying positive cash flow
properties to help me get into the market
and save for the next property.”
But as her portfolio grows, a desire for
cash flow properties won’t be the focus.
“I’ll have the ability to go after
properties with better equity potential,”
And the New Zealand native, who
now calls Queensland home, has recently
celebrated the settlement of her fourth
property. Also a place for her to call
home, the property is a dual occupancy
house located in Brisbane’s inner
northern suburb of Hamilton.
“We refinanced the first property
to cover the 10 per cent deposit and
purchasing costs for this buy,” she says.
Redrawing equity from her first Kelvin
Grove property was a highlight of Kate’s
“Our first property has been our best
investment. It’s provided great cash flow,
equity growth and always rents well.
“But because we self-manage, it’s a lot
of work renting by the room.”
Purchasing her fourth property isn’t
the only thing Kate’s been busy with.
After seven years together, she and Tim
made the decision to tie the knot in
a Balinese wedding, accompanied by
family and friends.
Kate says you don’t have to be earning
the big bucks before you make your first
investment move. It’s all about taking
small, incremental steps.
“I was earning $28,000 when I started
saving for my first property,” she says.
“It’s about making small sacrifices
today that will amount to huge rewards
in the future.”
To grow their property empire
abroad, the newlyweds are now looking
into investment opportunities across
“ There’s no stamp duty there, which
makes it cheaper to fund a property deal.
They also don’t have capital gains tax.”
Kate says the hardest thing about
property investing is not giving into fear
of the unknown.
“A research analyst once visited a series
of aged care centres,” she says.
“Residents were asked, ‘if you had
your life over again, what would you do
differently?’ The top two answers were
to take more risks and spend more time
“ This research motivates me to ignore
my fears and negative thoughts when
making investment decisions and focus
more on the desired outcome.” API
THE NUMBERS | KATE NEWMAN
SALARY RANGE: $121K – $150K
Kelvin Grove, Qld
4-bed, 2-bath house (+ self-contained unit underneath)
Kelvin Grove, Qld
5-bed, 2-bath house
Fortitude Valley, Qld
Dual key unit. 1 - bed, 1-bath and 1-bed studio
5-bed, 3-bath dual occupancy house (2-bed, 1-bath downstairs)
$2,506,000 $77,900 $3660 $2,686,000 $102,100
Principal place of residence (PPOR)
The first Kelvin Grove property
The Hamilton property
Kate Newman n YOUNG GUN
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