For some, property investment seems inevitable

Property investor Michael Nikolovski has seen a childhood fascination with Lego evolve into college levels in development administration and structure, jobs within the constructing trade, his personal residential constructing firm and a portfolio price round $15 million.

“My first job after university was with Burbank Group, one of the biggest Melbourne-based builders, and within the first year of employment in 2006 I had purchased a house and land package — now 15 years on and I am about to settle on my 18th property,” Mr Nikolovski stated.

Born and bred in Geelong, the 39-year-old founding father of boutique constructing outfit build2grow has been a agency advocate of the previous adage that it’s clever to spend the place you earn.

With the notable exception of a business property in south west Melbourne suburb Altona, his prolific property shopping for and promoting has all taken place in Geelong and the close by Surf Coast Shire that’s residence to the fabled Great Ocean Road.

Instead of location, the diversification has centred on the sorts of properties he has focused, which incorporates homes, models and townhouses.

“I am always looking for a property with a twist,” he stated.

“Whether it’s buying in stage one of a development, that is an early stage title of land that will title in 12 months-plus, or a house or block that can be subdivided or approved immediately to add instant value.”

His self-discipline, focus and acumen has led to a property portfolio with a complete worth of $15 million, together with 10 that he nonetheless holds with various levels of debt.

The sacrifices of his early years have paid a wealthy dividend.

“At university, a lot of my friends had full-time jobs and a lot of disposable income while I was working part-time at a bottle shop and also rendering two days a week and full-time over the holidays, to try and get ahead,” Mr Nikolovski stated.

Value-add technique

Being a builder gives apparent benefits in figuring out market alternatives and understanding regulatory necessities and the prices concerned in redeveloping, renovating and subdividing.

“Location is always the key to buying in the best place possible that I can afford but I’ve also spent countless hours researching to find the right one, and it takes hard work and patience to find the best deal at the right time,” Mr Nikolovski stated.

“My strategy has always been to buy, add as much value to the property as possible by developing, building, renovating and subdividing, and moving on to a bigger or better property deal by selling, if required, the property I felt would generate the least yield.”

Mr Nikolovski stated different planks of his technique included shopping for instantly from the land developer as early as potential, trying by the web to discover a distinctive alternative similar to a deceased property, the worst property on a great road, or a small home on a big block that could possibly be subdivided.

But even builders recognise the necessity to delegate.

“I always let the experts do their job, whether engaging the services of an accountant, conveyancer, property manager, you need a team you can trust that is clear about your goals and expectations,” he stated.

Commercial dalliance

Altona, simply 13 kilometres from Melbourne’s CBD, is finest recognized for its petrochemical plant, the now defunct Toyota plant, and former Prime Minister Julia Gillard making it residence in 2010 (though she now lives in Adelaide).

It’s now additionally residence to Mr Nikolovski’s first enterprise into business property.

An off-the-plan buy, the transfer into business property was pushed by the world’s entry to the freeway and the location’s explicit benefits.

“It’s a fully gated community of factories and with 80 per cent of them owner occupied, it gave me a sense of confidence that it would be secure and a high-quality development with good co-tenants as neighbours,” Mr Nikolovski stated.

“I’m looking to diversify from residential and more into commercial, as well as moving into investments in other states or regions of Victoria,” he stated.

The final purpose is to have 10 properties totally paid off, permitting Mr Nikolovski, and his spouse and three sons, to stay off the rental earnings. 

“This may mean that I will need to increase my property portfolio to as many as 20 properties and sell and pay off the ones that are the least likely to increase in value.”

With large ongoing demand, the bottom rates of interest in historical past, provide shortages caused by COVID’s impression on development, with the extra assist of native and federal authorities stimulus packages, Mr Nikolovski stated there have been nonetheless alternatives aplenty for traders.

“For anybody considering of moving into the property market, the important thing issue is to get educated, and I’m not speaking about college. 

“I’ve been taking property and self-development programs since I used to be 18 and nonetheless attempt to attend one or two yearly. 

“This has been the secret to my success, which seems quite simple but takes discipline and time.”

And are there any ideas of retirement?

“I don’t suppose I will likely be retiring anytime quickly as a result of I get pleasure from what I do.

“My dad is approaching 70 and nonetheless works full-time — he’s been with Ford Motor Company for 47 years in analysis and improvement.

“I can’t retire before him!”