Home' API Magazine : February 2014 Contents “It’s worth about $410,000 now.”
The house also rents for $500 per week,
which is a tasty gross yield of 6.3 per cent
based on its estimated value.
Property number three was a change in
tack – no more new house builds.
Tim found a two-bedroom, one-
bathroom villa in Mount Lawley, just 2.5
kilometres north of Perth’s CBD. He paid
$440,000 for the property, which rents for
$400 per week.
“I’m pretty confident once I do the reno
it will be worth $500,000 straight away
and rent for $500 per week.”
Tim plans to build up his cash reserves,
do the renovation and refinance so that
he can leverage the equity he creates into
his next purchase. He’s already looked
around and likes the idea of going to
an area where future infrastructure will
“You can pick up a property for $150,000,
close to the Geraldton CBD, and I’m
hoping if they build the Oakajee Port with
mining and all of that, it should move like
Port Hedland has.”
He would love to get into small
development and is keen to cut his teeth
simple first up.
Tim is an investor
who believes the
old adage of time
in the market, not
timing the market.
He isn’t looking
schemes and is set
to continue building
his holdings at a
A solid foundation
upon which to
steadily construct an
portfolio – what
more would you
expect of a former
Tim Massey is a 28-year-old Mount
Lawley police officer hailing from
Manchester in the United Kingdom.
He loves the usual distractions of sport,
socialising and travel, but unlike most
Manchester lads, he’s hitching his future
fortunes on the property market rather
than aspiring to be the striker for United.
By his own admission, this former
bricklayer just wasn’t good enough to play
professional football, although he’s been
training towards real estate riches for a
“When I was a kid I’d always watched
home renovation shows,” Tim says.
His parents don’t have a background in
property investing and it was young Tim
who tried to convert them.
‘let’s go and do one’.”
Tim’s risk profile is a little more
adventurous than his folks’, so he could
never quite convince them to stump
up the cash. Fortunately, they’re now
watching the progress of his portfolio with
keen interest and pride.
During a holiday to Australia, Tim saw
opportunities for workers with trade skills,
so he decided to come over and settle.
“There was a building boom in 2007
when I first came over on holidays.
Bricklayers were making good money
and my family was coming over as well,
so it seemed like a no-brainer... but by
the time we arrived in late 2008, the GFC
Despite the lousy economy, Tim saw an
opportunity for first homebuyers.
“I’d just sold my car in the UK for 5000
pounds. When I arrived, the government
was giving $21,000 for the First Home
Owner’s Grant which I thought was
obviously too good to miss.
“I saved about $19,000 by working
Monday to Friday full-time, and I also
worked a second job Friday and Saturday
nights in a bar.”
Tim says a house-and-land project in
Halls Head, Western Ausstralia, where he
was living seemed like a good start, so he
put together a package costing $370,000
all up. He planned to offload it after living
there for 12 months, but during that time
he had an investment epiphany.
“When I was living in the house I
started reading finance books like Robert
Kiyosaki’s Rich Dad, Poor Dad and I
learned about accumulating assets.
“It was reading API that inspired me to
start building a property portfolio instead
of selling houses.
“I refinanced it (the first house) and used
the equity to build a second house.”
His main goal now is to build up his
assets before moving onto something
bigger and better.
“Once you’ve got two to $2.5 million as
an asset base, then you can enjoy yourself,
change strategy and buy more positively
“Because I buy cash flow neutral
properties, then I shouldn’t need to sell
any. I plan to keep buying one per year for
as long as I can.”
So as to maximise his income for the
lender, Tim decided to move out of his
own house in Halls Head and house
share with friends in Mount Lawley. Tim
continues to rent out all of his properties
in order to boost his cash flow.
Property number two marked Tim’s
move towards a structured investment
plan in earnest.
He says the databank in the back of
Australian Property Investor provided the
backbone information for his decision to
try another WA suburb.
“I knew I could borrow up to about
$300,000 and I wanted to make about
$100,000 equity so I started looking in
price ranges up to about $400,000, with
rent yields of about five per cent which led
me to Baldivis.”
Tim found a house-and-land package
that was turnkey for about $320,000 in
THE NUMBERS | TIM MASSEY
Halls Head, WA
Contract signed April
Used $19,000 cash
savings plus the
$21,000 grant for deposit
$505 $394,000 $495,000 $101,000
Contract signed April
Used $38,000 equity
from Halls Head property
and borrowed the rest
$500 $334,000 $410,000 $76,000
Mount Lawley, WA
Used $47,000 equity
from Baldivis property
and borrowed the rest
$400 $433,000 $460,000 $27,000
$1405 $1,161,000 $1,365,000 $204,000
Use your smartphone
or tablet and your
favourite QR scanner
app to read a Q&A with
Bianca Patterson, Tim’s
TIM MASSEY \\ YOUNG GUN
API FEBRUARY 2014
FEBRUARY 2014 API
Use the button below
to read a Q&A with
Tim’s finance broker.
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