Four siblings, one as young as eight, known to be some of Australia’s youngest property investors, are already on track for a huge profit in just two years of home ownership.
Melbourne’s Ruby McLellan, along with her siblings Lucy, Gus and Hannah made waves as some of the nation’s youngest landlords, when it was revealed they bought a house and land package in the Victorian capital’s outer suburbs.
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And her dad, Cam McLellan, could be able to help more people follow in her footsteps.
Mr McLellan, OpenCorp’s founder and chief executive and investment expert has tipped that investors will flood back into the Melbourne market, with predicted strong house price growth in the coming years.
Ruby McLellan pictured with her dad Cam. Source: Supplied.
Despite concern about rising land tax costs and increased regulation of the sector, investment Mr McLellan told The Herald Sun that his business was advising investors to buy in the Victorian capital.
The firm works with mum and dad investors, retirees, businesspeople and professional athletes, including Horsham-born basketballer Mitchell Creek who plays for the Vancouver Bandits in Canada and the Melbourne Phoenix.
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The home that the McLellan kids purchased is shaping up as a savvy investment, after a recent evaluation stated it has grown in value by $270,000.
And its not even their first home together either. The sisters and brother also bought another property in Melbourne’s north worth around $850,000. Split four ways, that puts each child’s equity share in the two properties around $170,000.
Ruby and her siblings now own two homes.
An accomplished investor himself, Cam McLellan told The Daily Telegraph that the properties are held in a trust that he directs, and plans for the children to offload the homes within the next 10 years.
But there is one catch that’ll stop them going to blow all that money on a fancy car — one of the main conditions of the trust is that any profits the kids make from the homes have to be put into a property purchase, either a residence or another investment.
Mr McLellan explained earlier in the year the process that he and his wife Felicity adopted to help their children buy a house as an investment for their future.
Ruby, Lucy, Gus and Hannah scrapped and saved up the pocket money from all their weekly chores. until they got to a combined total of $6000, which they put it towards buying a home in Clyde for $671,000, with the help of their dad.
Mr McLellan’s OpenCorp analysts conducted in-depth research into Australia’s property market in July – which covered population growth, housing supply and land availability to help clients decide where to invest.
They believe signs now point to Melbourne’s median house price growth surging in the next three to five years, or potentially even sooner.
Elsewhere around the national, Mr McLellan explained that although Brisbane and Perth were currently returning the best yields for investors based on typical rents, at about 5 per cent, he was advising clients to look to Melbourne.
“In the last few months, 70 per cent of our clients have purchased in Melbourne,” Mr McLellan said.
Mr McLellan admitted that he would still advise people with a diverse property portfolio to invest some of their resources into Brisbane or Perth.
— additional reporting with Aidan Devine and Alesha Capone
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