{"id":42195,"date":"2023-02-07T09:18:42","date_gmt":"2023-02-06T20:18:42","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=42195"},"modified":"2023-02-07T09:22:27","modified_gmt":"2023-02-06T20:22:27","slug":"former-casino-worker-stacks-property-investment-odds-in-his-favour","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/former-casino-worker-stacks-property-investment-odds-in-his-favour\/","title":{"rendered":"Former casino worker stacks property investment odds in his favour"},"content":{"rendered":"

PHOTO: A commitment to saving hard for the first deposit and holding onto his rentvestment properties has proven a successful investment formula for Kev Tran<\/strong><\/p>\n

Some harsh lessons early in life have helped to inspire and drive the property investment strategy of Western Sydney product, Kev Tran.<\/p>\n

REPUBLISHED WITH PERMISSION API MAGAZINE<\/a><\/p>\n

t just 32 years of age, Kev Tran has seen both the dark and bright side of the real estate market.<\/p>\n

The son of Vietnamese parents who had their lives turned upside down by war before migrating to Australia the early 1980s, Mr Tran grew up in social housing in Western Sydney<\/a>\u2019s\u00a0Liverpool, eventually moving into their own house in\u00a0Hinchinbrook\u00a0by the time he was eight.<\/p>\n

\"Gold<\/a><\/div>\n
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\u2018Very confused\u2019: Mansions built 40cm apart | WATCH<\/a><\/h2>\n<\/header>\n<\/div>\n

\u201cMy dad worked, and still works, in factories, while my mother was in furniture sales and had second jobs cleaning offices in the evening, where I would go with her and do my homework,\u201d Mr Tran said.<\/p>\n

\u201cMy parents have always been hard workers and from them I absorbed\u00a0a strong work ethic.<\/p>\n

\u201cThey came from the (Vietnam) war so they very much had a scarcity mindset, so we were very frugal and saved well, but they did not know much about investing or wealth creation, so they just worked, saved, and spent their after-tax money on depreciating assets.\u201d<\/p>\n

His parents\u2019 eventual purchase of an investment property could\u2019ve been a positive turning point for the family but differing strategies between his parents eventually contributed to the demise of their marriage.<\/p>\n

\"AFP\"<\/a><\/div>\n
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Sydney mansions seized as police smash alleged $10 billion Chinese syndicate<\/a><\/h2>\n<\/header>\n<\/div>\n

They had bought an investment property in\u00a0their neighbouring suburb of\u00a0Miller\u00a0but it caused an irreparable schism between his parents soon after.<\/p>\n

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A mix of property types, complemented by some volatile currency-linked mortgage manoeuvres, have been hallmarks of the portfolio strategy of a Perth accountant and property investor.<\/p>\n<\/div>\n

\u201cIn Sydney\u2019s early 2000s property boom, my parents sold their investment property after just a year of significant growth due to a fear that prices couldn\u2019t go up anymore\u00a0\u2013\u00a0again, due to\u00a0the scarcity mindset and lack of education and financial literacy.<\/p>\n

\u201cThey didn\u2019t know about equity or leveraging.<\/p>\n

\"Gabriella<\/a><\/div>\n
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\u2018Crazy\u2019: 15 tenants for each Sydney rental as supply dwindles<\/a><\/h2>\n<\/header>\n<\/div>\n

\u201cMy father really pushed for this sale to cash in the profits and go on a holiday\u00a0and purchase a\u00a0car,\u00a0but\u00a0my mother didn\u2019t want to sell,\u201d Mr Tran recalled.<\/p>\n

After they sold that property,\u00a0they continued to see prices skyrocket for years to follow.<\/p>\n

\u201cI was only 11 or 12 but I could definitely see how this affected their relationship and infused a resentment towards each other.<\/p>\n

\u201cAs their relationship worsened and other poor financial choices were made, they were constantly fighting and splitting up and there were often long periods where I didn\u2019t see my father.<\/p>\n

\"Australian<\/a><\/div>\n
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Sydney and Melbourne experience biggest property HIT in 30 years | WATCH<\/a><\/h2>\n<\/header>\n<\/div>\n

\u201cMy parents eventually divorced and sold our family home as well,\u00a0and\u00a0I went on to live with my mother in an apartment\u00a0she later purchased\u00a0in Liverpool.\u201d<\/p>\n

As this unfolded during his final turbulent years of high school, Mr Tran had unwittingly sown the seeds of the strategy that would become the solid footing for his own financial security.<\/p>\n

\u201cWhen I look I look back at my childhood and early teenage years, what stuck with me is that saving and being frugal is important but can only get you so far in life.\u201d<\/p>\n

Playing the odds<\/strong><\/p>\n

After his mother sold the apartment, she moved to Melbourne with her new partner, but Mr Tran stayed in Sydney where he was comfortable with his network of friends.<\/p>\n

After periods living with his father and then auntie, he studied hospitality management and secured a job at 21 years-of-age at the Star Casino\u00a0tending to VIP guests.<\/p>\n

\u201cThe job introduced me to a whole new world of wealth I had only previously imagined; high rollers spending $10,000, $20,000, sometimes $100,000 in a day as if it was nothing.<\/p>\n

\"Selling<\/a><\/div>\n
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Jason Oppenheim: Sydney\u2019s luxury homes double the price of LA\u2019s, TV star says<\/a><\/h2>\n<\/header>\n<\/div>\n

\u201cI quickly learned that no matter what industry, job or business these wealthy people made their income from, the majority built their long-term wealth through property and I decided this is what I\u2019ll do once I have enough cash saved up.\u201d<\/p>\n

Kev’s rentvestment portfolio<\/strong><\/p>\n\n\n\n\n\n\n
Location<\/th>\nPurchase date<\/th>\nBuilding type<\/th>\nPrice paid<\/th>\nCurrent value<\/th>\n<\/tr>\n
Cranbourne West<\/td>\n2016<\/td>\nTownhouse<\/td>\n$450,000<\/td>\n$600,000
\n(refinanced in July 2022 at $571,000)<\/td>\n<\/tr>\n
Ballarat North<\/td>\n2018<\/td>\nFreestanding house<\/td>\n$385,000<\/td>\n$650,000
\n(refinanced Feb 2021 at this figure)<\/td>\n<\/tr>\n
Wilsonton<\/td>\n2021<\/td>\nFreestanding house<\/td>\n$410,000<\/td>\n$500,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

With his newfound income and independence, Mr Tran made his first venture into property investment.<\/p>\n

By ensuring his expenses were less than 30 per cent of his nett income and by living a balanced lifestyle with some discretionary spending\u00a0and\u00a0overseas holidays, he was able to save $65,000 over five years for the all-important first investment property.<\/p>\n

With Sydney deemed unaffordable in 2016, he looked interstate and bought an off-the-plan three-bedroom townhouse for $450,000 and an estimated completion within two years.<\/p>\n

\u201cIt was a nervous step but I had already mentally prepared to enter the property market for many years, and was prepared to take a risk, as opposed to just saving my money and being afraid like my parents.\u201d<\/p>\n

Studying the market through as many mediums as he could, Mr Tran\u00a0committed to rentvesting\u00a0and continuing to rent in inner city and inner west Sydney, where his rented residences were out of reach to buy in the $1-2 million range.<\/p>\n

\u201cI choose to rentvest for a few reasons, namely the debt and interest paid on your residence is non tax-deductible as opposed to investment debt that helps my taxable income; the type of property I like to live in has high strata fees and less capital growth potential; and, the properties I buy have strong capital growth and strong rental yield that helps me build my passive income over the long term,\u201d he explained.<\/p>\n

Kev\u2019s key strategies for success<\/strong><\/p>\n

In accumulating the three properties he has to date, in Melbourne and\u00a0Ballarat in Victoria, and\u00a0Toowoomba, Queensland, Mr Tran breaks his strategy into three distinct phases.<\/p>\n

\u201cI first work my way from the macro research, then work my way to micro research, then on-the-ground research.\u201d<\/p>\n

Some of the macro factors I look at are:<\/p>\n