Woman in Focus
Meet Pam Russell, married for 34 years, with two grown up daughters, who has managed to build a portfolio of 18 properties and is still going, purchasing 3 properties this year!
Most recently adding to her portfolio by purchasing one property that needed a decent renovation and two properties in New Zealand after attending Property Women’s New Zealand Tour in March 2009.
When Pam was 19, she wanted to buy her Grandmother’s home but in those days, it was impossible for a single woman to borrow money from the bank. The house was sold for $11,000 and is now worth $450,000. That experience left her with a strong desire to buy a property.
The First Step…
Pam was set on buying properties. She was able to locate her first investment property through the local newspaper.
Pam did really well as a first time investor. By making sure that she had saved 20% deposit, she had instant equity and the rent nearly covered the mortgage.
What is Pam’s Strategy?
Pam’s investing strategy is simple: BUY and HOLD.
Over the years Pam has bought vacant land, commercial properties, domestic homes and units.
Pam locates most of her properties through the internet and word of mouth. Before buying, she usually compares properties to other sales and rent in the area, looking for properties she can add value to, often removing old gardens, dead trees and replacing them with modern hardy plants. “I don’t have any renovation tips but I loved Judith’s new book * and found it very thorough.”
(*Diamond Members have access to lots of valuable, inspiring information including an e-book on renovating by Judith Taylor.)
2009 Success Stories…
“Someone told me they’d inspected a house and it needed a (real) bomb to fix it. I thought “cheap” – lets go for it!”
This property was purchased in April 2009 for $260,000. Renovated for a total cost of $20,000 including a new kitchen, paint and new garden. It has been recently valued at $350,000 with a rental income of $360 per week.
That’s an increase in equity of $70,000 with a gross yield* of 6.7% in the current market!
(* To calculate yield you need to know the annual rent, purchase price and the cost of any renovations undertaken as shown below:
Annual rent of $360 per week x 52 = $18,720
Purchase price of $260,000 + $20,000 (reno cost) = $280,000
Gross yield is $18,720/$280,000 x 100 = 6.7%)
Purchasing in New Zealand
In March this year Pam attended the Property Women’s New Zealand Tour which inspired her to invest in New Zealand.
Since March she has purchased two New Zealand properties and added to her team a Property Finder to help her locate positive cash flow properties. Here are some pictures and amazing stats on her most recent purchases.
Property purchased on New Zealand’s South Island for $NZ158,000.
Consisting of 2 flats with each flat being rented out for $NZ235 per week. Showing a gross yield of 15.5%!
New Zealand property no 2…which has just settled was purchased for $NZ71,000 ($AUD58,000) and will be rented out for $NZ150 per week. Showing a gross yield of 11%.
Both properties are cash flow positive!
Bump on the Road
Of course, like many other property investors, Pam also has had her share of challenges along the way. “The only mistake I feel I’ve made is being too greedy on the day of a land release. We bought 3 blocks and the value has since dropped by 30%.”
“My challenge is to make that vacant land into a positive situation.”
Right now, she is planning to build a house on one block at a time and have it rented out.
Except for the land, all of Pam’s properties are positive cash flow.
How Property Women Help Pam
“The workshops are brilliant. After the first one, I was so excited I drove down the freeway 20 minutes past my turn off. I learnt so much, and everything ‘clicked’. My husband initially didn’t share my enthusiasm but I was so inspired I have bought 9 properties since that first workshop.”
Pam found out about Property Women through Reno King Website and although she has always read books and articles on property investing, she has found Property Women’s workshops and information most comprehensive.
One of the important things that Pam learned through Property Women is the importance of building your team.
Plus just what percentage to budget for in a renovation to make it successful.
The Good Life
Since becoming involved in property investing, Pam loves life. “I love life. It’s so exciting with something to do or think about everyday”.
Five years from now, Pam pictures herself retiring and with the rent from her investments providing her with a very comfortable lifestyle.