In this episode of Market Watch Scott and Deb tackled the issue of building a portfolio with 100 properties or more. To cover the topic from a finance perspective, they were joined by Darryl Mutch from Mutch Financial Services.
In case you haven’t noticed, there is a bit of noise on social media from ‘buyers agents’ who are hyping their own portfolios that contain 100 properties, so we wanted discuss the feasibility of this approach in the current market. You can watch the episode here.
The helicopter view
They initially looked at the ATO data covering the performance of property portfolios as reported from the 2021 – 2022 Financial Year. This is the most recent available data due to the reporting time lag so doesn’t include the biggest bump from increased rental returns but provides us with the most reliable baseline for solid insights.
Interestingly, the data revealed that portfolios with 20 properties or more were the least likely to deliver a profit. The panel unpacked some of the reasons for this result, but found that if you stopped just at this point it would seem there’s not a great benefit of having 100 properties in your portfolio.
Next, the panel gave their views on how a successful portfolio could be built in the current market including the following aspects.
- How property owners can achieve their income targets with as few properties as possible.
- Why profitability is more important than the number of properties in a portfolio.
- Focusing on the number of tenants vs the number of properties.
- Impacts of interest rates and borrowing capacity on the ability to build a portfolio.
Deb, Scott and Darryl then wrapped up with a discussion on the practicality of building a portfolio of 100 properties in the current market, including the key points below.
- Is it achievable – yes . .but you would have to start early and be extremely savvy – eg – live at home with parents, or live in a share house where the rent and costs are low.
- Is it worth it – as mentioned earlier, it’s not really worth striving for 100 properties if your aim is to build a good level of continuous rental income so you can ‘quit your day job’. You might only need three or four, depending on your income targets.
- The warning – be careful about who is really making money because it should be you . . if you’re being spruiked into buying multiple properties you’ll be paying plenty of money in purchasing costs and managing your portfolio. It also means you’ll be giving more of your equity away to ‘advisors’ which means it will take longer to be financially independent.
Watch the episode here . .
Author: Debra Beck-Mewing
Debra Beck-Mewing is the Editor of Property Portfolio Magazine and CEO of The Property Frontline. With over 20 years of experience buying property across Australia, Debra is a skilled property strategist and buyers agent known for uncovering tailored opportunities — from family homes to multi-use investments.
She has deep expertise in advanced strategies including renovations, granny flats, sub-division, and development. A Qualified Property Investment Advisor (QPIA®), licensed real estate agent, and holder of a Bachelor of Commerce and Master of Business, Debra combines strategic insight with hands-on experience.
Debra is the creator of the Property Smart Track System™ – a professional property buying system that enables buyers to select, assess and buy property independently in today’s market. She also leads Buy Like A Genius™, a premium end-to-end buyers’ agency service for busy professionals seeking expert property acquisition without the stress.
As a passionate advocate for greater transparency in the property and wealth industries, Debra is a sought-after speaker, author, podcast host, and participates on numerous committees including the Property Owners’ Association.
