Investor Profile: Jonathan Preston 5 Properties in 4 Years

Published: March 10, 2016, 2 p.m.

b'ARVE Error: Mode: lazyload not available (ARVE Pro not active?), switching to normal mode\\n\\n\\n\\n\\n\\n\\n\\n\\n{"@context":"http:\\\\/\\\\/schema.org\\\\/","@id":"https:\\\\/\\\\/onproperty.com.au\\\\/investor-profile-jonathan-preston-5-properties-in-4-years\\\\/#arve-youtube-lavsfrn_20o659a0b2e7e90d216116070","type":"VideoObject","embedURL":"https:\\\\/\\\\/www.youtube-nocookie.com\\\\/embed\\\\/LaVsfrn_20o?feature=oembed&iv_load_policy=3&modestbranding=1&rel=0&autohide=1&playsinline=0&autoplay=0"}\\n\\n\\n\\nIn this investor profile we talk to Jonathan Preston who has purchased 5 properties in the last 4 years. If you want to be featured on On Property simply email ryan@ryanmclean.net\\n\\nHey guys! Ryan here from OnProperty.com.au, helping you find positive cash flow property. And one of the things that people love to hear is from investors who have gone out there, purchased property themselves and had some experience in the market and achieved some success. And so today for our Investor Profile, I have with me Jonathan Preston, who has purchased 4 properties himself and has built up quite a successful portfolio and has just written a book about it as well.\\n\\nRyan: Hi Jonathan! Thanks for coming on today.\\n\\nJonathan: Thanks very much for having me.\\n\\nRyan: So, give us first an overview of what is your portfolio and what does it look like. And then we will talk more specifically about each of your properties and why you chose to purchase those ones.\\n\\nJonathan: Yes. So at the moment I have 5 properties. 4 of them are located in Sydney, more specifically Western Sydney, and the last one that I purchased was in Queensland. Basically, I have the philosophy observed like yield-growth, and I believe in that you can actually to continue to build a portfolio over time.\\n\\nRyan: Yeah. So we were talking a bit before this interview about how you like to invest in areas that are set to grow but you like to have a decent enough field so that they are either neutral or they are positively geared so you can afford to grow your portfolio because we all know that if you go super negatively geared, that is only a couple of properties before you run out of the income to support those properties. So I can understand your attitude there.\\n\\nSo, talk us through the first property that you purchased. Actually, are you able to share results of like what have you achieved in terms of equity and stuff like that or passive income before you get into it?\\n\\nJonathan: Yeah, sure. Well, I will go through each one individually and say what I think it was roughly worth, what I purchased it for, everything like that. So first one that I got was a 2-bedroom in Liverpool.\\n\\nI bought that towards the end of 2012, and that is just a basic kind of 2-bedroom unit. It was quite nicely renovated inside. I paid $217,000 for that one. The rental yield was appraised between $300 and $310 a week, so it was pretty good in terms of the yield there. I would say today, that is worth about $380 - $390, so capital growth on that has been pretty substantial.\\n\\nRyan: Yeah. Obviously the Sydney market has gone pretty crazy in the last couple of years so you got in at a good time, definitely there. What was your reason for choosing Sydney, and for choosing Liverpool in particular? Do you live around that area or is there some sort of strategy behind it?\\n\\nJonathan: No. Actually, I have not lived around there. Basically, I wanted to find somewhere that met the criteria of being high yield but also very commutable to Sydney. The commutability to me, to a major city is very important part of the equation.\\n\\nThat is really because I think that the urban sprawl is going to take place over time, and I really think that how much a property could go up in value is largely determined by income growth over time, and the capital cities typically will find, basically see much greater income growth over the long term. So, Liverpool was quite attractive...\\n\\nRyan: Is that something that you know,'