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Lloyd has a palate for a diverse range
of properties, however buying new
properties is now his preference because
of the depreciation benefits and lower
“I have a mixture of houses, units and
villas and am now getting into developing.
I also like to invest in a wide range of
property markets,” he says.
He also likes to add some blue chip
to the mix. “I have two in Sydney at
the moment and intend to increase my
portfolio with more blue-chip properties in
To find his properties, Lloyd looks at
average capital growth rates over the past
10 years, median house or unit prices for
the area, and what the average rental
He also considers demographics,
infrastructure, industry and amenities.
¿ TARGETING THE PROPERTIES
“I was 29 when I bought my first property –
a one-bedroom unit in Rockdale, Sydney,”
In 2004, with $54,000 from savings and
inheritance, Lloyd bought this Rockdale
property for $270,000, with a long-term
strategy of achieving good capital growth
and rental yield.
Initially he purchased this unit as
his home, with a longer-term view
“After living in it for five years I leased
“I bought it with some idea that I might
rent it out in the future so I tried to
make sure it was in a good suburb, new
building, of blue-chip investor-grade,
within 15 kilometres of the CBD, close to
trains, buses and the water,” he says.
However he wasn’t that interested
in being an investor at the time. That
“I was very excited when purchasing
my first property. I was on a budget and
thought I would have to buy something
old. Then I saw some new apartments
in the area where I wanted to live,”
“The two-bedroom units were too
expensive but the one-bedders were right
in my price range. I couldn’t believe that
I secured a brand new place as my first
property. This wasn’t off the plan either as
they were already finished.
“The developer was trying to get rid of
them so he reduced the price. I managed
to bargain the price down a little more.
Along with the fact that I had a 20 per
cent deposit and a property that had
grown in value over the years, this all
worked out to be a great start to my
investment portfolio. Although this was
five years before I would think about
buying another property.”
The unit’s current value is $435,000 and
its rental return is $380 per week.
So far Rockdale has done well, according
to Lloyd, offering very good rental returns
and steady capital growth over the years.
The only landlord insurance claim Lloyd
has ever made was at this property, but
not as a result of a bad tenant. “The
sewerage came up through the bathroom
floor and destroyed all the carpet.”
Lloyd describes this investment as his
“keep forever” property. “We’ll keep this
one for our kids to live in when they move
out of home – and we don’t have any
¿ PICKING UP THE PACE
Five years later, in 2009, Lloyd’s second
property was a three-bedroom villa in
Ingleburn. He paid $252,000 for the
property using $25,000 of his savings.
Lloyd moved into this property and leased
out his first property; he was officially
This was the same property Lloyd sold
in 2013 for $320,000 to really get his
The third property was a giant leap
out of familiar Sydney for Lloyd. In 2010,
he bought a three-bedroom house on
a large block in Queensland’s mining
town of Blackwater. He paid $250,000,
borrowing against the equity in his
He bought it “well under intrinsic value”
as it was on the market for $289,000. This
was to be Lloyd’s “trading” property and
opportunity to add some strong cash flow
to his portfolio.
Lloyd was attracted by the good returns,
meaning positive cash flow for his
“I’m not there for the long term but
to sell when the timing is right and
there’s sufficient equity in the property,”
He commissioned the services of a
buyers’ agent to purchase this property,
which helped get the deal at a good
purchase price, making it “a true deal”,
“It’s been tenanted by the same
corporate company the whole time I’ve
owned it. Rent has been a strong $440
per week, which equates to a 9.1 per cent
yield. The tenant isn’t a mining company,
but a company that hires equipment to
mining companies. I chose to go this
way so it’s safer than having a mining
1. Research thoroughly.
2. Always think long-term. Property is a
3. Having the finance right is crucial. Find
a good broker.
4. Always aim for capital growth.
5. Aim for a positive cash flow portfolio.
It’s okay to have some negatively
geared properties but overall cash flow
positive can keep you moving forward.
6. Seek advice from independent
LLOYD’S TOP 6 TIPS: for faster
1. Don’t buy near where you live just
because you think you know the
market. Research the best markets.
2. Don’t cross-securitise your loans.
3. Don’t aim for high yields at the expense
of trying to make some future growth.
4. Don’t take advice from family and
friends, unless they have solid property
4 THINGS TO AVOID: for your
portfolio’s growth acceleration
æBetween now and completion I’m anticipating
considerable growth in the Brisbane market,
therefore some equity in the property.Æ Lloyd Edge
INVESTOR PROFILE // LLOYD EDGE
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