Why big-time Aussie property investor has put five rental homes up for sale
An Aussie landlord who bought his first home working at McDonald’s is selling off five rentals within weeks of each other — and the reason is not what you think.
An investor who bought his first home working at McDonald’s is selling off five Qld rentals within weeks of each other – and the reason is not what you think.
Super investor Eddie Dilleen told The Courier-Mail he has five properties across Greater Brisbane earmarked for sale, despite his strong belief in South East Queensland’s growth potential.
Two have already been snapped up by other buyers, with another two now listed for sale and a fifth coming shortly, said the man who owns over 100 properties now.
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“Basically I’m selling a handful I bought in my self managed super fund two to four years ago,” he said.
Of his more than 100 collection of properties, listings data shows Mr Dilleen has 12 bought through company structures in Queensland including those set up through his superannuation funds.
“The reason being you can’t take the equity out,” he said. “I’ve got to sell them to actually realise the equity and get use out of the equity. I can reinvest it and re-leverage into a bigger asset.”
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“One of the houses I bought in Creastmead in Logan for like $400k and that’s jumped up probably almost closer to $700,000. Another I bought for like $430k, which is most like $850k mark. They’ve almost doubled in value which is great in two or three years but a self managed fund’s different because you can’t take the equity out of it and keep the property. You’ve got to sell it and then cash out the equity to then reinvest it.”
He said since the market, in Queensland especially, has jumped up so much the last couple years, a lot of people were cashing out.
“They’re getting their equity out. I’m doing that but I’m only doing it because I have to do it because the ones I’m selling are in super so I don’t have any other choice to get access to the equity.”
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Mr Dilleen said given how well his super fund purchases have done in Queensland, he had no regrets – other than having to sell them.
”It shows how much better off you are even buying a basic property in super, using the power of leverage. The one I bought for like $400k at 20 per cent which was $80k super, I’m selling for like $750k-plus. That $80k turned into like $400,000 equity in three to four years through leveraging, going into a market that I knew was going to double.”
Mr Dilleen is exploring buying closer to where he grew up in Western Sydney next, which he said was “the equivalent of Ipswich and Logan in Western Sydney”.
Originally published as Why big-time Aussie property investor has put five rental homes up for sale