Inside the property portfolio of the RBA’s first female governor Michele Bullock

Michele Bullock is not only the first female to fulfil the RBA governor role – she’s also coming into the job with a multimillion-dollar property portfolio.

Australia’s next Reserve Bank Governor Michele Bullock is a Sydney landlord who has amassed a $6 million property portfolio after growing up in a country town and has rejected the big banks for her multiple mortgages.

News.com.au has confirmed via Ms Bullock’s official RBA declaration of material interests that she owns four properties including a three-bedroom house in Sydney’s inner west that is jointly owned with her partner Andrew.

Deputy Governor Bullock was hailed today by Treasurer Jim Chalmers as the person best placed to take the Reserve Bank into the future.

Michele Bullock has been named as the next RBA governor. Picture: NCA NewsWire / Martin Ollman

“Michele is an outstanding economist but also an accomplished and respected leader,” he said.

“Her appointment best combines experience and expertise with a fresh leadership perspective at the Reserve Bank.”

Property records confirm she owns her family home outright but has mortgages for her investment properties with the Gateway Bank, a customer-owned bank that boasts of putting “people before profits”. It currently offers a variable rate of 5.69 per cent.

The house was bought for $285,000 in April, 1991, the year interest rates fell from 17 per cent of 13.5 per cent when Bob Hawke was Prime Minister.

Google images suggest the property has a pool in the backyard.

According to RP Data, it’s now worth an estimated $3 million, although some estimates put the value as high as $3.44 million.

But after locking in the family home Ms Bullock continued to acquire investment properties.

Her RBA disclosure lists two other investment properties but a property search reveals there are actually three – although two are apartments at the same address.

She also owns two modest investment properties at Five Dock and Drummoyne in Sydney that are worth around $1 million each and rented out for around $600 a week.

Ms Bullock has paid off this property in Drummoyne. Picture: realestate.com.au

The Drummoyne property was purchased in 2012 for $670,000, representing a tidy profit of around $300,000 in less than a decade.

Two other apartments were purchased in Russell Lea in 2007 for around $500,000 and have subsequently doubled in value.

The Five Dock property, which features an unrenovated kitchen, was recently advertised as “generously proportioned and situated in a sought location in a boutique block of apartments.”

It was rented out for $500 a week.

Ms Bullock also had a margin loan with the Commonwealth Bank of Australia. According to her financial disclosure document she has self-managed funds with North investment, while her spouse invests with Vanguard, iShares Global Healthcare and iShares Core S&P / ASX 200.

Ms Bullock has a personal savings account with the CBA and the couple have a joint savings account with Gateway.

It's estimated this Russel Lea property is worth $990,000. Picture: realestate.com.au

Earlier this year, the outgoing Reserve Bank governor was branded “out of touch” after it was revealed he purchased his Sydney home with the aid of a heavily discounted, taxpayer-subsidised mortgage.

Mr Lowe’s five-bedroom home in Randwick was purchased in 1997 for $1.075m – the same year he was appointed head of the RBA’s economic research department.

He was assisted with a half-price loan from the RBA with the interest rate locked at half the standard variable rate being paid by Commonwealth Bank customers under the scheme.

An RBA spokesperson confirmed that Dr Lowe had repaid his loans, did not have a borrowing facility with the RBA and all financial disclosures were correct.

News.com.au has contacted the RBA to inquire whether Ms Bullock has previously taken advantage of the RBA’s discount mortgage scheme.

Ms Bullock will replace Philip Lowe as RBA governor. Picture: NCA NewsWire/Tertius Pickard

Governor Lowe said in a statement, “The Treasurer has made a first-rate appointment. I congratulate Michele on being appointed Governor.”

“The Reserve Bank is in very good hands as it deals with the current inflation challenge and implementing the recommendations of the Review of the RBA.

“I wish Michele all the best.”

One of the loudest voices for RBA reform is Christopher Joye, a portfolio manager with Coolabah Capital. He previously worked at Goldman Sachs and the RBA.

He welcomed her appointment.

“She‘s also meant to be super smart, very hard-hitting,’’ he said.

“Having said that she is definitely not the radical, outside leader you could have found with a global search.”

“She’s an insider who may not be as partial to ushering in the reforms as an external appointment might be.”

Do you know more? Get in touch - [e-mail]