Home' API Magazine : August 2014 Contents rent and I needed to get a little creative.
It’ll happen from time to time,” he says.
So with this in mind, he says he prefers
high rental yield properties.
“ My portfolio plan depends on
these properties pretty much paying
And he periodically refinances his
portfolio to help access cash from his
“ All of my properties are positively
geared, though maintenance of my older
properties has chipped away at the cash
flow. All up, though, the portfolio is cash
flow positive,” he says.
“ I’d have to say my Elizabeth Bay
property was the worst (investment). It
appeared to have a good capital gain
when I sold it, but I was forking out $150
a week for six years to cover mortgage
payments. If you do the math, the gains
aren’t that impressive.”
Learning from his past mistakes, and
working in design and art direction,
means Denny takes inspiration from
creativity. He has also sketched his own
design for his future financial journey.
“ A passive income of at least $100,000
within the next nine years and the choice
to do what I want,” he says.
“ Will I want a family? Will I want to start
my own business? Will I want to bury
myself in the Amazon with a native tribe
for a year?
“ I won’t know, but I’d want to be able to
do those things if it so pleases me. ” API
brokerage business and were able to help
him structure the loan.
“I borrowed $40,000 and secured it
against my parents’ house, then used that
as a deposit for the rest. (It was) $218,000
all up. I ’m not sure if the banks will let you
do that anymore,” he says.
After that first bite at the property apple
it wasn’t until January last year that
Denny secured his next investment.
“I knew I wasn’t maximising my returns
with my sole property so when I finally
caught up with my friend Zaki again, I
knew he’d become heavily involved in
the property business and I asked him for
help. He took me under his wing and has
been responsible for probably the biggest
personal transformations of my life. ”
Denny had found his mentor, and with
his newfound guidance he was ready to
Using $25,000 equity from his Elizabeth
Bay property as a deposit, he purchased
a three-bedroom, one-bathroom home
complete with a one-bedroom, one-
bathroom granny flat in the Western
Sydney suburb of St Marys.
Following a $30,000 renovation, the
property’s value increased to $390,000
providing him with $70,000 equity within
just a few months.
In September last year, he purchased a
three-bedroom, one-bathroom home in
Sydney’s Willmot for $227,000 .
He used $23,000 from the sale of his
Elizabeth Bay home as a deposit for this
property and borrowed the rest. Denny
was also keen to renovate again and with
a budget of $30,000 undertook a similar
makeover to his St Marys property. This
increased the property’s value to $310,000
after the renovation was completed.
“Willmot had a quick renovation and
returns were impressive, from both a
capital and rental perspective,” he says.
Less than two months later Denny
purchased his fourth property, which
was also his third acquisition within a
Located in Mt Druitt, he bought a two-
bedroom, one-bathroom apartment for the
bargain price of $244,000.
But it hasn’t been all smooth sailing.
In Denny’s experience one of the most
difficult aspects of property investing is
juggling cash flow.
“I had some pretty heavy plumbing issues
with one property that ate up months of
Denny’s top investment tips
> Plan but be willing to adjust if
circumstances change. Life isn’t a
> Become a problem-solver; there are
always more ways to skin a cat.
> There’s a difference between good
and bad debt, understand it.
> Most people have been brought
up with draconian attitudes
towards wealth creation, be
prepared to unlearn a few things.
An open mind is key.
> Remove all negative emotion about
money. Be happy to learn about
creating wealth, be happy to talk
about it. It’ll soon be at front of your
mind and subconsciously your day-to-
day activities will have you achieving
Dinah Lewis Boucher @DinahBoucher
It was a trip halfway around the world
when he was just a teenager that
would prove to be the catalyst for the
creation of Denny Jones’ personal and
A designer and art director by
profession, he lives in Sydney’s
Darlinghurst. Today his property
portfolio’s value is just shy of $1 million
and he has big plans for it to expand.
“From a young age, there was high
expectation to achieve from the family. It
was very much drilled into my brother and
me, especially from my mother,” Denny
says. “When I was 17, I went to see my
mother’s side of the family in Colombia,
some of which I would consider to be living
under the poverty line. My parents weren’t
poor, but weren’t exactly well off either,
and I just had a burning desire to provide
for my family, especially with my parents’
retirement only about 15 years away.”
Today, 28-year-old Denny has had many
experiences including an early lesson in
personal finance – an education that he
says was a pivotal moment in his life.
“ I’d come into some financial problems
based on other people’s advice at the
age of 22 and realised I needed to take
responsibility for my own life. No one
was going to save me and no one else
was going to make me successful. I really
looked at the world differently from that
moment,” he recalls.
Denny was convinced that property
investing was the path to success for him.
Self-help books were his staple diet and
Robert Kiyosaki’s Rich Dad, Poor Dad was
one of his all-time favourites.
But, like most first-timers, achieving that
first rung on the property market wasn’t
easy. Eager but with no savings, Denny
turned to his parents for help securing his
It took a year of convincing his parents
he was indeed serious and seeing his
enthusiasm, his parents agreed to sit
down with him and discuss a plan of
action. Denny secured his first property
in 2007 at the tender age of 22. “(I was so)
relieved. I ’d been pushing for a way to get
onto the property ladder for a while and
knew this was my best chance,” he says.
His first purchase was a studio
apartment in Sydney’s Elizabeth Bay.
Family friends owned a mortgage
API AUGUST 2014
AUGUST 2014 API
DENNY JONES \\ YOUNG GUN
Links Archive July 2014 September 2014 Navigation Previous Page Next Page