Eddie Dilleen has written books, held seminars and assists those who want to build property portfolios within Australia.
A property mentor who broke into the market on his own aged 18, says it’s still possible to buy real estate with just $25,000.
Investor turned buyers agent Eddie Dilleen held down two jobs – including a McDonald’s shift – to save up his first $20,000 for a home loan deposit and costs almost a decade and a half ago. Today he has over 100 properties, and says there are many more affordable ones still out there to make a start with.
“You can buy a property still in 2024 with as little as 25 grand. When I bought my first one I had $20,000 and that was about 14 years ago,” he said.
The challenge, Mr Dilleen said, was that “the average person doesn’t set the goalposts high enough”.
“Being too risk averse is risky in itself,” he warned. “There are always affordable properties out there” such as a $275,000 unit he recently bought in Mount Lawley, Perth.
“Anyone could have bought that” with a bit of effort, he said, laying out how the costs break down for him.
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Eddie Dilleen has written books, held seminars and assists those who want to build property portfolios within Australia.
Eddie Dilleen bought an apartment in this Mount Lawley complex for $275,000, with more such affordable options available for those looking to get into the market.
“Someone starting off can do as little as a 5 per cent deposit,” he said. “Technically the banks will lend you as much as 95 per cent if you really wish.”
“What’s a 5 per cent deposit to come up with for that ($275k property)? Less than $14,000.”
“Plus stamp duty at about $8,000, pest and building inspection, so $25,000. Someone can buy a property with as little as $25,000.”
Mr Dilleen said some of his staff members at Dilleen Property were on salaries of about $60,000 and already owned three properties thanks to savvy investing.
“Their rents have gone up with that, or they’ve bought one with a guarantor, one with savings, one with equity,” he said.
They don’t have to be pretty, they just have to add up financially like this two bedroom ground floor unit bought for $187,000 in October 2022 in Perth. Market rent there would be over $443/W now.
His top tip for anyone buying their first property was education – urging more people to learn how the real estate investment market works.
“Before you go out and buy an investment property, read as many property investment books as possible,” he said.
“Surround yourself also with people who have actually done it before and have that same mindset.”
His next crucial tip was not to wait for interest rates or a bigger deposit or other excuses to get stuck in.
“Get started as soon as you can because the property market can continue to go up over time and the longer you wait, the more you might pay in the next one or two years.”
If you continue to put off your property purchase, he said, it will cost you more money in future.
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Lastly, he said, it was important to block out naysayers who may be trying to rain on your parade.
“Don’t listen to the naysayers. There’ll be a lot of people that say you should wait to buy a property or you shouldn’t do this or shouldn’t do that.”
“I would just say get started as quick as you can, educate yourself first and get started right away – and with an affordable property first as well.”
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