The Property Pineapple - Tomas Turkayoglu

Performance Property Data

“So it’s hoping for the best, but preparing for the worst.”

Sharon’s guest today on The Property Pineapple is her colleague at Performance Property Advisory, Acquisitions Manager, Tomas Turkayoglu. Tomas studied Construction straight after school, and then switched his major to Property. Despite his youth - Tomas is only 26 years old - he has a wealth of knowledge and experience in purchasing investment properties.

Earlier this year, Tomas bought his first property in Ballarat. Not originally sold on the idea of buying in Ballarat, he was swayed by the research. In the end it came down to affordability and potential for strong rental yields. He was keen on a house that would be appealing to renting families, as well as being a nice character home, with a good land component, that was close to public transport.

In addition to this, regional areas are attractive for investors in the current climate, as they offer affordability when the cities have reached their peak. They can provide a stepping stone to a larger asset in the city, while appreciating your savings at a greater return than a bank would.

Tomas speaks about his long-term goals, which is essentially building wealth. He is confident in following the research when purchasing properties, and wishes to add as many to his portfolio as he can.

To help with achieving this goal, Tomas has made the decision to live at home with his parents. This has been a sacrifice, but he still manages to have a good social life. He is in good company too, with many of his friends also in the property investment market.

Tomas lays down three tips for people who might be in a similar position to him. He advises people to make realistic and smart decisions. This involves not drastically changing your lifestyle as this might mean not being able to commit to such sacrifices long-term. Finally, and most importantly, stick to a manageable plan.

Tomas and Sharon chat about the importance of having a cash buffer. Tomas says that his cash buffer is there for security, and he acknowledges that old homes will need maintenance and so having some cash for expenses is necessary. The cash buffer is also good for covering any shortfalls that may occur. It’s about hoping for the best, but preparing for the worst.

Sharon asks Tomas about the due diligence he performed on his property before he bought it. The main thing was to have in mind the absolute top purchase price he was prepared to go after. Next, came the building and pest inspection. Thanks to this, he knew the house wouldn’t need any immediate works, but that in five years it would probably need a new roof. This allows him to plan into the future and manage his cash flow.

Tomas’ risk management is mostly about choosing an asset in an established suburb, as well as diversifying his investments. Now that he has purchased in Ballarat, he will soon look to purchasing another in a different, underperforming market. Through increasing his asset base, he hopes to minimise his investment risks.

He says that one of his long-term goals is to have a passive income, and Sharon pushes him to explain what a passive income is.

Sharon mentions the statistic that 70% of investors only own one asset. Tomas says that a lot of this might come down to the quality of that asset. People may purchase at the wrong point in the cycle, so that they don’t realise a lot of the growth, and they’re unable to take advantage of quickly leveraging the asset to purchase another.

To Tomas, a quality asset is one that is a desirable suburb near a good education district, health services, amenities, the character of the area, and its proximity to public transport. Tomas suggests investors need to think about the end point of the investment: that one day, someone will need to buy the asset, so people need to purchase a property that people will want to buy.

Tomas’ final tip is to reiterate one of his tips from before: choose a strategy that is manageable and stick to it.

About Sharon’s guest, Tomas Turkayoglu…

Tomas is responsible for managing the transaction process at Performance Property Advisory. Specialising in the residential sector, Tomas is a Qualified Property Investment Advisor (QPIA), providing detailed advice that informs clients on the fundamentals of property investment. This includes identifying growth suburbs and regions; demographics and employment rates; proposed infrastructure developments and other aspects that contribute to a positive return on investment.

Tomas completed his Bachelor (with Honours) of Property and Valuations at RMIT and is a member of Property Investment Professionals of Australia (PIPA).

About your host, Sharon Taylor…

Sharon heads up the research division at Performance Property Advisory. She is responsible for the aggregation of economic and property data sources, as well as deep analysis of the data to provide quarterly reports on each capital city of Australia.

These reports identify between 5 and 8 submarkets in each capital city, and provide an opinion as to the short term performance of each submarket. This information is vital for clients to maximise the performance of existing assets, and also for selection of new blue-chip investment locations.

‘The Property Pineapple’ is one of three segments you will hear on the Performance Property Data podcast. Released every four weeks, and hosted by Sharon Taylor (Research Analyst - Performance Property Advisory), the show presents listeners with stories from real investors, discussing their wins and admitting their losses.

‘Property Insiders’ are also released every four weeks and are conversations between David McMillan (Director Acquisitions - Performance Property Advisory) and industry leaders offering knowledge and expertise.

And ‘Performance Insights’ are released every Wednesday and Friday, giving you technical information and the lowdown on key property markets around Australia.

For more information about how Performance Property Data can help you maximise your investment dollar, head to www.performancedata.com.au to become a part of the Performance Property Community for access to exclusive content.