From State House Beginnings to Property Investors: How Brendon and Alison Built a Mortgage-Free Portfolio of Eight Rentals

Sixty-nine-year-old Brendon grew up in a state house. He had no experience of owning property until he bought his own home. He shares how he and his wife Alison have since created a portfolio of eight rental properties – each now mortgage free.

When did you start investing in property and how have you kept going? I bought for my first home in 1986. When I met my wife Alison she lived in her own apartment. Moving in together gave us the opportunity to live in one home and rent the other. Becoming landlords made us aware of the potential to own property beyond our own homes. With equity in two properties, our bank allowed us to borrow money to buy our second, third, fourth…and finally our eighth.

We’ve focussed on owning and managing units in Newtown and Berhampore – two areas in high demand from staff at Wellington Hospital. We’re risk takers but our first investment property came with tenants. The rent covered the cost of our mortgage, so it was a no-brainer from Day One.

How did you feel when you invested in property for the first time?

Buying our first rental property was exciting. We’re proud to be landlords. We’ve enjoyed managing the properties ourselves and taking care of our tenants. We set our rent as low as we can, taking our costs and tenants’ circumstances into account. We maintain the gardens and provide our tenants with whiteware. It’s been a pleasure to get to know our tenants from many different backgrounds and cultures. Some have become good friends.

Why did you choose Tommy’s? How has the team supported you as a buyer and seller?

We appreciate being full and frank with the team. They’ve shared their realistic views of each property’s sale price (based on recent sales in the area) and given us invaluable tips when buying and selling, especially when we were newbies. When we sold one of our properties, Tommy’s team approach brought us additional buyers from multiple agents.

How has Tommy’s team and investing in property impacted your life?

It’s been a remarkable experience and life-changing adventure. We took a punt and it paid off. I still work full-time as a town planner because I enjoy my job, but we wouldn’t be as asset-rich if we’d relied solely on our salaries. Our commitment to property has opened our children’s eyes to investing opportunities too. Two of our three children recently pooled their resources to invest in a new townhouse together.

What has been the best moment in your property buying or selling journey so far?

There have been many special moments. Tommy’s encouraged us to make an unconditional (cash) offer once. It tempted the vendor to accept our bid, over and above other conditional offers. Another memorable moment was when we increased our portfolio to three rental units. It proved that we could use the equity from our current properties to borrow money from the bank to buy our next property.

Have you got any milestone you’d like to share?

Moving into our current home in Waikanae has been a major milestone. It’s a single-level house with easy access and a low maintenance garden. It suits us perfectly at this stage of our lives. We’re now reaping the benefits of our investments. Our portfolio is mortgage-free so we’re in a very fortunate position to ‘cash up’ when we’re ready.

What would you say to a potential property investor?

• Start looking at properties on the market even if you’re not serious about investing yet. You’ll learn a lot from reading the property press and going to open homes without the pressure of making an offer.
• Know your numbers. Talk to your bank about how much money you can borrow before you make any offers. Research the potential rent and associated costs (rates and insurance etc). Don’t be put off by the body corporate fees for an apartment because they cover the cost of maintenance and insurance.
• Start small. Buying a two-bedroom unit in a block of flats or an apartment will cost less than a standalone house.
• Invest in properties and areas in high demand – consider locations close to the city and large employers such as the hospital; modern buildings with good afternoon sun and a carpark.
• When you’re buying a property, be prepared to make a cheeky offer. You can always bid up but not down!