Tasmanian plumber Sam Kiely’s reason for 13 property portfolio

This Aussie bought his first house aged just 18 after working three jobs during high school, but says he is using his properties for a “purpose”.

Plumber Sam Kiely has amassed a property portfolio worth more than $3 million but said he is using his homes for a “purpose”.

The Tasmanian purchased his first place at just 18 after working three jobs during high school as a tradesman assistant, at a fast food outlet and in a restaurant, cramming 20 hours a week on average into nights, weekends and school holidays.

With a $25,000 deposit, he snapped up his first buy in Latrobe in December 2014 for $232,000, while still living at home although it is jointly owned with a family member.

At the time, he was working as a second year apprentice plumber earning $13 an hour, he said.

“I always had a plan before I even bought the first one, which was to become financially independent and to do that I knew I had to acquire at least 13 properties to generate enough income unencumbered,” he told news.com.au.

“So it was straight on to the next one until I have got to that number.”

The 25-year-old then followed a pattern of buying one or two properties each year. There was seven properties across Devenport between 2015 and 2018, with the first purchased in April 2015 for $162,000, followed by another in August 2016 for $182,000.

Tasmanian plumber Samuel Kiely said he wanted to use his properties as a way to financial independence. Picture: Supplied

In 2017, he snapped up two properties in Devenport for $182,000 and $195,000 in August and November and not long after that, he bought a place in January 2018 for $188,000.

Determined to continue his strategy, he bought a place in July 2018 for $212,500, then moved on to Somerset in April 2019 with a home for $180,000, followed closely in July with a property for $165,000 in Brooklyn.

“I built my first house and moved out of home in September 2018 and then sold it and built again in 2021,” he said. “I had acquired seven properties before moving out of home.”

Despite the booming property market bought on by the pandemic, with regional Tasmania leading the nation for the pace of annual capital gains with dwelling values rising by 29.1 per cent since November last year CoreLogic data found, it hasn’t stopped the plumber buying up big.

It led him to his biggest haul with a property in Brooklyn bought in May this year for $210,000, before forking out more than ever with a place in Devenport for $620,000 in June and his own house in Pengium for $763,000.

Then it was his biggest spend to date, with another snapped up in Launceston in October for $830,000.

The 25-year-old could retire at 40 but wants to keep working. Picture: Supplied

However, nine of his properties in his portfolio are jointly owned, where he holds a 50 per cent share in eight of them and a 25 per cent share in his most recent purchase.

But Mr Kiely insists he predominantly leases out his properties to assist those fleeing domestic violence situations and one to a prisoner reintegration program.

“It’s a good feeling knowing that the properties are contributing to a worthy cause, assisting the community and helping those in need at a desperate time in their life,” he said.

It hasn’t all been smooth sailing when one of the tenants, who was fleeing domestic violence, was placed into one of my properties.

“For one reason or another that abusive partner has located the whereabouts of our property and occupant and as a matter of course the property became damaged quite substantially internally with the walls, flooring, ceiling, doors and cupboard, so it took quite a bit of work to rectify it,” he said.

“I’ve had a few hurdles due to the potential demographic of the tenant but I wouldn’t change it.”

One of the providers Mr Kiely works with is Centacare Evolve Housing, which under the Rapid Rehousing program, rents properties from the private market at market rent value and sublease to a tenant, who pays contributions in accordance with social housing policy.

“We provide a full tenancy management service for example lease signings, inspections, rent collection, maintenance response, etc,” said James Norman, general manager of housing operations at Centacare.

“We also provide basic household furniture and whitegoods in recognition that many of the tenants who enter Rapid Rehousing properties either do not own, or cannot access, their own furniture.”

Mr Kiely said to save hard but also considering buying property with family. Picture: Supplied

Centacare currently manages about 70 properties in Tasmania and Mr Norman said there are many benefits for owners from a minimum one year fixed-term lease, fee-free property management and peace of mind on rent payments, maintenance liabilities and property inspections.

There’s also knowing that they are assisting people in need of a safe home, he noted.

Mr Kiely continues to plan to be a part of the program but has no intention to expand his property portfolio beyond Tasmania.

“Tassie is home and I have a sound understanding and knowledge of the local market, more so than I do of the mainland,” he noted.

“I plan to continue building my property portfolio, likely acquiring assets up to the age of 30 at which time I’ll start to consolidate. I’m planning to work because I want to, not because I have to, by age 40.”