28-year-old real estate “whizzkid” Eddie Dilleen who has been buying up a storm across Brisbane when the rest of the country was in COVID-19 lockdown. Pictured at one of his properties in Greenacre, Sydney. Picture: Dylan Robinson
A 28-year-old ‘whizzkid’ bought almost one property a month while Australia was in the grip of COVID-19, one of many investors scooping up high rental yield homes at a discount now.
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Eddie Dilleen bought two Ipswich duplexes in April, paying $410,000 ($130k discount on the last price paid). Rented at $580 a week, the gross yield sits at 7.3 per cent.
For Eddie Dilleen, 28, who has 25 properties in his portfolio, it’s a no-brainer to buy now, especially with interest rates so low.
“I’ve bought seven properties in total since COVID started. Six properties in Brisbane and one in Sydney. The six properties I bought in Queensland were to continue building my property portfolio growth, mixing from houses, duplexes, townhouses and a commercial property also. The other property in Sydney was changing PPOR (place of residence) and was bought for $1.3m.”
“So, since COVID-19 started I’ve added almost $2.5m to my property portfolio bringing the total value close to $8m in property I own.”
EDDIE DILLEEN’S BRISBANE COVID BUYS:
March: Townhouse (Logan): Paid $135,000; Rent $270 a week; 10.4% gross yield.
April: Two Ipswich Duplexes: Paid $410,000 ($130k discount on last price paid); Rent $580 a week; 7.3% gross yield.
May: Ipswich 2 bed villa: Paid $133,000; Rent $280 a week; 10.9% gross yield.
August: Commercial property (Logan): Paid $200,000; commercial lease 12.5% gross yield.
September: Two bed unit (Surfers Paradise): Unconditional $210,000; Rent $350; 8.6% gross yield.
(Source: Eddie Dilleen)
In May, Eddie Dilleen bought this Ipswich two-bedroom villa for $133,000. Rented out at $280 a week, the property gets him a 10.9 per cent gross yield.
When it came to how his portfolio would be hit because of COVID-19, Mr Dilleen said he “wasn’t concerned at all”.
“I have invested with a strategic formula to minimise risk,” he said. “My property portfolio is extremely cashflow positive which means the total income far outweighs the expenses and holding costs.”
Mr Dilleen said he got almost $500,000 rental income a year while his mortgage expenses sat at $200,000 a year, leaving $300,000 in the kitty as a buffer through any economic shockwaves.
“I haven’t thought about negotiating better terms with the banks due to COVID-19. I haven’t had any issues with tenants paying rent or anything either.”
The man who bought his first property at 18 after saving two years worth of earnings working at McDonalds, said his goal was to never sell any property he bought.
“I hate the idea of selling property. Most people regret selling properties after 10 to 15 years because usually they are worth a lot more.”
His three-pronged wishlist for properties was “good cashflow or high yields, capital growth and buying properties at a discount price below market value to create instant equity of 15 to 20 per cent plus”.
What drives him is being able to buy a property way under market or bank valuation.
Eddie Dilleen paid $200,000 in August for this commercial property in Logan. It has a 12.5 per cent gross yield.
”If someone needs to sell and their main priority is getting a quick sale they will usually compromise on price, therefore sell lower. It’s just about having the right contacts and putting in the research and work.”
Mr Dilleen said he often bought properties at $50,000 to $100,000 below what the bank valuation was.
He said the prices he got were usually unheard of in the wider market because most people just limited themselves to places where they lived.
“I’ve bought in Brisbane as close to the CBD as 5km but also as far as 40km. Same with Sydney. I’ve bought as close as 12km to the city CBD and also as far as 35 km.”
“Property investing is about numbers and making money to create a life of financial freedom. To me the only thing that matters is the profit, not the colour of the carpet or if the paint isn’t the nicest. It’s about trying to take the emotion out of property investing.”
In March, the start of the COVID-19 lockdown, Eddie Dilleen bought this townhouse in Logan for $135,000. Rented at $270 a week, it has a gross yield of 10.4 per cent.
His top tip was research or get help from someone who can get results and has done it themselves.
“Build the right team of people who can help you such as mortgage broker, property manager and buyer’s agent if you don’t have the time to do it yourself. Property investing can be extremely complex as everyone has their own opinion and thinks they’re an expert.
I would recommend people to not listen to the naysayers, If I can do it, anyone can. I grew up in an extremely poor family and no one owned a property at all – now I own 24 plus properties.”
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