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Momentum Wealth success story

Monday, 4th Apr 2011
Categories: Newsletter

money

Divya Shah is certainly not one to sit back and watch the world go buy. With two teenage children and a wholesale distribution business to look after, Divya knows what it’s like to feel like there are never enough hours in the day. But a shortage of time has not gotten in the way of Divya and his wife starting a property portfolio to secure their family’s financial future.

Divya’s interest in property investment as a means of wealth creation started a number of years ago after he and his wife built their house. Encouraged on by their business coach, they decided to make their first move about four years ago.

Their first purchase was interstate in the fringe suburb of Truganina in Melbourne, Victoria. Approached by a developer about a parcel of land in this growth corridor, Divya decided it was worth pursuing and proceeded to purchase the land and then develop a 4×2 home on it.

However, unimpressed with the equity he had acquired some time after the project was completed, he recognised that he needed help to invest in property wisely. Not only did he feel he needed additional education and support to help him on his wealth creation journey, but he realised he just simply didn’t have the time to dedicate to it.

“Running a business I don’t have the time to look at all the details and all the research that’s involved.

“My wife and I both are what we like to call ‘passive investors’, so we like all that work to be done somewhere else whilst we concentrate on our main jobs,” he said.

Not long after, Divya and his wife starting investigating a number of property advisors. Eventually they settled on Momentum Wealth to help put them on the right track. After getting up to speed with Divya’s situation and helping him to create a wealth creation plan to achieve his goals, Emma Everett of Momentum Wealth began searching for just the right investment property.

In early 2009 Emma found just the right one and with her help, Divya settled on a character property in the suburb of Belmont, Perth for $332,250. Although it would probably need some renovations down the track, he proceeded to just tidy up the place with a coat of paint and a few other improvements to help with its rental potential.

A year later Emma conducted an annual review and found Divya was just short on equity in order to purchase another investment property. Emma identified that by undertaking a minor renovation, they could potentially increase the value of the property by up to $50,000, much more than the investment in the renovation itself. Divya took this advice and engaged an interior designer recommended by Emma to assist with the project and bumped up the value by $35,000, enough to move forward with purchasing another property. Divya was very pleased with that result, estimating that he gained 2.5 times more in equity than what was spent on the renovation and today, has a property that has achieved capital growth of approximately 20% in just a short space of time.

With two investment properties under his belt, Divya is now on the lookout for his third. Emma has just recently spotted a great villa in Joondanna which Divya is now in the process of securing.D

ivya counts the help of a property advisor like Momentum Wealth as important to his success. Through the help of Emma and many of the other consultants, he learned many important lessons along the way and developed a set of skills to help him navigate the sometimes perilous world of property investing.

But what about the long term plans for this rising star? Divya explains that his target is to secure one property every year. When he feels confident he’s acquired as much as he needs his focus will shift to getting the loan-to-value ratio’s down. The ultimate goal will be to have the properties stand on their own providing a positive cashflow for him and his family.

For others who are short on time or unsure about dipping their toes into the water, Divya has some pertinent advice. The number one thing, he says, is getting some good education before making your move. And secondly, don’t delay. In Divya’s own words, “there is no such thing as the right time or the wrong time”.