Home' API Magazine : March 2014 Contents says this creates a “win-win situation”
for himself and sellers who are “turning
their negatively geared investments into
positive cash flow” and avoiding delays
and hefty selling costs associated with
more orthodox property transactions.
His Queensland assets have already
grown in value. When he bought the
Regency Downs house, for example, he
negotiated a purchase price of $365,000.
It’s valued at $370,000 today.
Glenn estimates the combined value
of the two houses in Upper Coomera
has risen $90,000 in five months to
Asked what he’ll do when the time
arrives to exercise his options, he says
“there’s a few options” including on-
selling each property to another investor
or buying and holding.
“Either way I don’t have to be too
aggressive as I can comfortably cover
the shortfalls on my salary and claim my
negative gearing benefits weekly to help
with cash flow. I’m pretty confident I
won’t be exercising the option in three
years’ time as I’m confident I’ll see
substantial capital growth well before
then,” he says.
When API spoke to Glenn he’d just
finished a stint at a Roma gas plant in
central Queensland and was about to
head “back underground” for two months.
He sees himself permanently above
ground by his 30th birthday.
“Over the next three years my plan is to
build to 25 properties, which my mentor
and I have projected will give me $4000
passive cash flow each week from positive
cash flow properties, achieved with
extremely minimal risk.” API
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Using a “simple” property option
agreement, the once broke Glenn
Bruce has been able to secure
purchase contracts over a $1.59 million
property portfolio in one of Australia’s
strongest growth corridors; assets he
forecasts will be worth more than $2
million by 2017.
His nest egg, which is being created by
securing properties at a discounted price
from sellers who need a fast exit strategy,
is costing him less than $900 a week to
fund from his six-figure annual mining
industry income. And he believes his
story proves “anyone can do it”.
“Hitting absolute rock bottom is what I
believe is driving my will to succeed,” the
Sydney-born investor tells API.
“Bankruptcy forced me to think outside
the box and that’s how I came across
the strategy of buying property options,
which fits my goals and lifestyle perfectly.”
Glenn currently calls the Gold Coast
home and rents a house with two fellow
miners in the leafy suburb of Benowa
Waters. He explains that he has always
worked in lucrative mining jobs and had
plenty of money to invest. But after falling
victim to “some poor financial education
and advice” in early adulthood, he
declared bankruptcy in 2007.
“It wasn’t from risky investments or
trying to get rich quick and if I had my
time over again I would have fought my
way out of bankruptcy, but unfortunately
bad advice from a trusted person led me
down that path,” he says.
Busting to sink his bumper income
into real estate because of its generous
tax benefits to high-income earners and
proven merit as a “safe and tangible”
investment asset, Glenn was forced to
bide his time for the next six years until
his credit status improved. He used the
period to stash his cash and on February
14 last year was officially discharged
He wasted no time, buying three
Queensland residential rental properties
in July via options agreements with help
from a property adviser and a further two
in Victoria just before Christmas.
With enormous population growth
expected between Brisbane and the
Gold Coast – “50 per cent in the next 20
years” – Glenn found two three-bedroom,
two-bathroom houses for sale in the north
Gold Coast suburb of Upper Coomera.
He offered their owner, an investor who
had bought the pair as house-and-land
packages in 2011 and was now “hurting”
covering the gap
a contract to buy
them within three
years for an agreed
price of $370,000
each. In the same
month he secured
an identical deal
with the owner
of a five-bedroom
house on a 2.1-
hectare block in
20 kilometres west
of Ipswich. The agreed sale price was
$365,000 and Glenn has four years in
which to exercise his purchase option.
“Being in the growth corridor on
acreage... it seemed like a no brainer to
me,” Glenn says.
The two properties in Victoria – a three-
bedroom house in the outer Melbourne
suburb of Melton South and a two-bedroom
unit in Sale, a coastal town 210 kilometres
east of Melbourne – will be Glenn’s for
$236,000 and $171,000 respectively.
Again, he’s confident he has found two
property market underdogs with big value
As a deal sweetener, Glenn has paid
each seller $10,000 upfront per property
from his savings.
All of his property options give him the
legal right to buy the properties only when
their values have grown by a minimum of
10 per cent above their originally agreed
purchase prices, and give the sellers no
control over what way the options are
exercised or when Glenn takes full control
of the property.
Glenn pays each
for its seller and
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THE NUMBERS | GLENN BRUCE
5-bed house on
$10,000 $228.95 $360 $370,000
3-bed, 2-bath plus
3-bed, 2-bath plus
house on 590 sqm Dec 2013
$10,000 $128.80 $250
2-bed, 1-bath unit Dec 2013
$50,000 $850.88 $1565 $1,590,000
* Upfront cash payment to seller. # Gap between seller’s mortgage and property’s rental income.
GLENN BRUCE \\ YOUNG GUN
API MARCH 2014
MARCH 2014 API
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