Become A Millionaire With Real Estate Investing In 9 Years (Guide)

If I were starting from scratch, what would be the fastest way to become a millionaire through real estate? 

‍

In this article, I’m going to share with you a couple of examples of how easy it is to actually get to a million dollars' worth of net equity. I’ll show you how to do it in under 10 years. 

‍

If you’re interested, then definitely keep reading.

‍

‍

‍

Fastest Way to Become a Millionaire 

‍

I remember growing up, it was always about: How do we become a millionaire? Oh, that guy’s got a really nice house—he must be a millionaire.

‍

Now, it doesn’t really mean much because it seems like, just to get into the market here in Sydney, you’ve got to have a million bucks. Otherwise, it’s not possible. 

‍

Therefore, in this article, what I want to show you is exactly how you can build up a million dollars' worth of net equity without having to just struggle, and without having to go out there and say: Okay, I need multiple jobs. Both my partner and I need to keep working, we can’t travel, and we need to save every cent—so, unfortunately, we can’t have the coffee either. 

‍

The way I did this was in my 20s, building up the portfolio while still enjoying life. It’s so interesting to see media articles and hear people still under the assumption that you need to save every single dollar, literally eat tuna cans, and live on 2-minute noodles. They think that’s the only way you can get wealthy and break into the property market. 

‍

I’m telling you—it’s actually quite easy if you put your mind to it, follow a strategy, and stay in your own lane without caring what anyone else thinks. 

‍

Let me show you an example right now. 

‍

For this to work, you would need the deposit for your first property and all the associated costs. 

‍

‍

You’re going to need roughly about $100,000. To get in, it could probably cost you $85,000 or $90,000, but the remaining $10,000 will act as an emergency fund in case something goes wrong. 

‍

‍

Let’s work with that.

‍

If you’re someone in a position where you’re at $80,000 or $90,000, you’re pretty much ready to go. 

‍

If you’re someone closer to $40,000 or $50,000, now you know exactly what you need to do and what that result will look like if you actually follow this path. 

‍

If you’re someone who’s got the equity in your property and a couple of hundred thousand dollars, you, in fact, will get to this number a lot quicker. I’m going to say it’s probably going to take you about six years if you’ve done this really well.

‍

Imagine that—becoming a millionaire in 15 years is amazing. Becoming a millionaire in less than 10 years is outstanding. Doing it in less than five or six years is absurd, but it’s actually possible. 

‍

I’m going to show you an example of it right now.

‍

Let’s look at a simple compound interest calculator. What you’ll need to do is, with your initial deposit and funds, go out there and buy a $500,000 property in year one. That might be next month or in the next six months, but you’re going to start with a $500,000 property. 

‍

Therefore, I’m going to input $500,000 here, and the interest rate or growth rate we’ll use is 7%. The reason I use 7% is that the national average is about 7–8% in Australia. 

‍

‍

Now, although this is the average, it would be nice to get a little bit more than that. I’m proud to say that every single person we’ve helped at Search Property, the buyers' agency, has achieved more than 7%. It’s an average of between 11% and 13%. 

‍

These numbers get absolutely wild, and you’d achieve your goals a lot earlier. But for the sake of this article, I’m going to use conservative numbers of 7%. 

‍

Before you say:  “7% isn’t possible” or “$500k properties aren’t possible,” this is the stuff we buy every single week. 

‍

We purchase anywhere between 20–25 properties that fit all our metrics and due diligence processes. Those are the ones we secure for clients, and about 82% of them are off-market deals that you’ll never see online or published anywhere. That’s the strength of having a team that goes out there and does this for you. 

‍

The best part of it all is it takes about 3 to 5 weeks to get those results. So, if you need a hand in finding where these properties are and whatnot, definitely book a FREE discovery call with our consulting team. They can answer a couple of questions that you have burning on your mind right now.

‍

‍

‍

The 9-Year Millionaire Blueprint

‍

Going back, we’re going to put 7% in here, and it’s going to compound yearly. 

‍

What we’re going to do is look at this over a period of 9 years.

‍

‍

Now, you go ahead and see, okay, that $500,000 property has now gone up by almost $420,000, which means that if all things are equal, you would have $420,000 that you’ve now generated in net equity from that property. 

‍

‍

Mind you, it’s tax-free because you aren’t selling that property, which means if you had the borrowing capacity, you could go in there, take out some of that equity at 80% or 90%, and then use that as a deposit for your next property.

‍

Even better, you might be sitting there saying: Well, okay, investment properties are great, but how does this get me into my principal place of residence?

‍

Let’s assume you want to buy a $1.5 million house in Sydney. You would most likely need a 10% deposit, which is $150,000. Plus, you’ve got to pay stamp duty and other costs, so you’re looking at well over $200,000 to execute that.

‍

‍

Where do you get the $200,000? 

‍

Well, for the next 10 years, you could go ahead and save your money every single year, probably not take any holidays, only to get to a point in 10 years' time to *hopefully* buy something that’s still worth $1.5 million. 

‍

The reality is, in 10 years, it’s probably not worth $1.5 million anymore, and now the goalposts have moved further. Because of that, the $200,000 you needed has become $300,000, which is what you now need to save in order to get into your property at that point.

‍

This is why so many people fall behind—because it feels like every time you get to the goal, the goalposts move, and you keep getting to that goal, only for it to keep moving out of reach. This is why we have so many people complaining about how unaffordable it is here in Australia. 

‍

Now, although that is true and it is getting harder, it’s not impossible to get in and build wealth through real estate. 

‍

This is a classic example: you’re going out there, buying a $500k property, getting 7% growth, and in 9 years, you’ll have $420,000 worth of equity. 

‍

This means you could literally sell that property, pay all the taxes, and still be left with more than you would if you had saved every single year. 

‍

This way, you get to purchase the property upfront. You’re probably negative cash flow for the first two years by about $150 a week. You continue renting, living your best life, travelling, and whatnot, and then come back in 9 years and say: Okay, I simply want to get rid of this property and go buy my dream house.

‍

Now, although many people would want to do that and it sounds appealing, I want to show you how you become a millionaire in 9 years—and I can tell you now, it’s probably not by doing that strategy. What you need to do is, in year two, you go and buy another property.

‍

How exactly would you do this? 

‍

Well, you’ve got a couple of options. 

‍

• One, you continue to save. 
• Two, you’re going to use the equity from this property and use it as a deposit to now get your second property. 

‍

Now, that second property, assuming you’ve bought in a different area, could cost you about $550,000. 

‍

Let’s say, right now, we have $420,000 worth of equity. 

‍

To purchase our second property, which we’re going to buy at $550,000, we’re going to need about $110,000. 

‍

Now, some of that will come through savings, but we’re also going to use some of that equity. 

‍

Collectively, we’re going to have $110,000. Our equity position will go down, but we’re calculating what this would look like in 9 years' time. Let’s assume you’ve used about $40,000 from your equity, and the rest comes from your savings. 

‍

So, we’re going from $420,000 minus $40,000, and now you’re sitting at $380k.

‍

‍

This number here will drop to 8 years because we’ve already done one year, and we want to see how much this is going to be worth in 9 years' time. What we see is it’s worth $395,000. 

‍

‍

That means we have $395,000 from this property in 8 years, plus the $380,000 from the first property (after deducting the equity we used). That collectively gets us to $775,000. 

‍

‍

All you’ve really done here is save for the first deposit—which is why I’ve always said the first property is always the hardest. Yet so many people make the mistake of saving all that money and then buying their own place, or even worse, buying something they were told was a good idea that turns out to be the worst idea. 

‍

In this case, it’s a proven system. You keep it simple, build the machine, and continue living your best life.

‍

Now, what you’ve got is $775,000 worth of equity that you’re going to have in year 9. So, if you’re 30, you’ll get that by 39; if you’re 40, you’ll get that by 49. 

‍

Now, that doesn’t get us to the million-dollar mark, and you’ve guessed it—the next thing you’re going to need to do is buy one more property. 

‍

In this case, you could go out there, buy property in your SMSF, and say: Yes, I’ve got the equity there plus the properties I have, and I could be a millionaire. But you can’t really access that. 

‍

In year 1, you bought the first property at $500,000. 

‍

In year 2, you buy the second property at $550,000. 

‍

In year 3, you’re going to go to a different area as part of the growth cycles and purchase another property for $550,000.

‍

Now, what you’re going to see here is this number will change to 7 years, and we’ll find ourselves in year 9 with an extra $333,000 worth of equity. 

‍

‍

We will need to minus about $50,000 or $60,000 because that’s going to go toward the purchase of property number three. For the sake of this, we’re going to minus $50,000 off our running total, which goes from $775,000 to $725,000. The rest is going to come through your savings to purchase the third property. 

‍

‍

Now, what we’re going to do is add $333,000 to the $725,000, and that gets us to a total of $1.05 million. 

‍

‍

This is how you become a millionaire with real estate through a really simple process. 

‍

‍

‍

Why Mindset and Strategy Are Key to Success?

‍

Now, I know this stuff works, and I know we could probably get you there a lot faster. One of the first thoughts that come to your mind is: Can it really be this easy? What am I missing here? This must be a Ponzi scheme. Surely it can’t go on like this forever. 

‍

For someone who’s lived here my entire life in Sydney, been a student of the markets for almost 20 years, and personally invested in real estate all across Australia over the last 11 years, I can tell you—the market doesn’t care about your feelings, and it certainly doesn’t care about my feelings. 

‍

So, is this possible? Most definitely, it is. It’s just a matter of mindset and perception. 

‍

If you’re someone willing to put in the hard yards for the next 3 years, you can ensure that you’ll be a millionaire within the next 9 years, and it doesn’t even seem that far. 

‍

You could go out there, buy more property, and get there even faster. Depending on the type of property you buy, you could accelerate your cash flow, which allows you to get into the next property even faster than that. 

‍

There are so many things to cover, but I wanted to give you a simple way—the fastest possible way—you can do this without having to forgo your life for the next 10 years. It would’ve felt like going through my 20s just to buy property and build wealth, only to say: Oh, well, look at me, I’m a millionaire now, but with no life. 

‍

Imagine eating only cheap food and not even getting to travel the world. I didn’t do that.

‍

I built the portfolio before I even ran the buyers agency, took up a couple of different jobs, travelled a hell of a lot, and enjoyed my life. Thankfully, I don’t have an expensive pet, so the occasional KFC really did satisfy me. 

‍

If you’re someone who wants to enjoy life and still build wealth, this is the easiest way to do it, and I can show you exactly how. Please reach out to the team at Search Property by booking a FREE discovery call. 

‍

I know there’s this shameless plug at the end, and it’s like: Oh my God, he’s selling us something!

‍

However, if I’m selling something so good, it would be unethical *not* to tell you about it.

‍

I hope you’ve enjoyed this article. If you have, share this with your sibling or partner to show them that this is possible. You don’t need to go and buy your dream place straight away—you can become a millionaire and then do whatever the f*** you like it. 

‍

Anyway, I hope you’ve learned so much from me in this one. I’ll catch you guys in the next one. Thanks, guys!

‍