BUY CHEAP AND FLIP ’ EM

Townsville Bulletin - - NEWS - CHRISTIE AN­DER­SON

SELF- MADE busi­ness­man Brad Webb says the key to prof­it­ing from prop­erty is pa­tience and know­ing how to make money at the bot­tom of the mar­ket.

Mr Webb, who heads up BM Webb In­dus­trial Prop­erty, is con­sid­ered one of North Queens­land’s most suc­cess­ful in­vest­ment iden­ti­ties.

He came from hum­ble begin­nings and grew up in Wul­guru be­fore be­com­ing a diesel me­chanic.

He then started in­vest­ing in res­i­den­tial prop­erty, and ex­panded to com­mer­cial prop­erty be­fore mak­ing his for­tune in his in­dus­trial es­tate, which now forms his core busi­ness.

Mr Webb’s no- non­sense ap­proach to fi­nance has paid big div­i­dends and he says de­spite the neg­a­tiv­ity in Townsville, there is still plenty of money to be made from prop­erty.

“I think 40 years of gut- bust­ing has prob­a­bly made me money, and con­sis­tency, stay­ing with one thing and tak­ing lit­tle steps,” he said.

“If you’re go­ing to be in prop­erty you have to be good at ev­ery level of the mar­ket and I think there is a lot of money to be made, per­haps even more in bad times than there is good times.

“Boom times are the worst and that’s why these times are the best.”

Mr Webb said sav­ings were key, as well as a hefty de­posit of be­tween 20 to 30 per cent and peo­ple just start­ing out in prop­erty in­vest­ment should be­gin with res­i­den­tial.

“Ev­ery­one start­ing off should go res­i­den­tial and low- cost res­i­den­tial,” he said.

“You have to have a sub­stan­tial de­posit and don’t tell me you’ve got no sav­ings but you’re good at mak­ing re­pay­ments be­cause if you can’t save a de­posit you might pay the pay­ments but you’re never go­ing to save the money to pay the debt quickly enough to get the eq­uity to get the re­turn out of it to in­vest in the sec­ond prop­erty.

“Don’t pay too much for stuff, don’t be greedy, and most of all, the key is pa­tience.”

Mr Webb, who has now been in the in­dus­trial prop­erty in­dus­try for more than 30 years, has seen nu­mer­ous eco­nomic cy­cles in Townsville and says times will get bet­ter.

“Townsville is not dead. There is too much good stuff here,” he said.

“We’ve got agri­cul­ture, the port, man­u­fac­tur­ing, the army and education.

“I think we need to take more pride in what we do and we cer­tainly need wa­ter.” metal PROP­ERTY flip­per Sam Browning is suc­cess­fully turn­ing a profit by buy­ing houses dirt cheap, ren­o­vat­ing them and sell­ing.

Mr Browning owns Avenue De­vel­op­ments with his busi­ness part­ner Alexan­der Goldfinch.

He was briefly a lawyer be­fore try­ing his hand at real es­tate, which led him to prop­erty in­vest­ment and he has now ren­o­vated eight dif­fer­ent homes. Mr Browning hasn’t been de­terred by Townsville’s soft res­i­den­tial mar­ket.

“Due to my time in the real es­tate in­dus­try I do know I’m ren­o­vat­ing in a de­clin­ing mar­ket so the bud­gets have to be tight and wher­ever you can save money you need to,” he said.

“If you need a hole dug then dig it your­self be­cause you learn what over cap­i­tal­is­ing means re­ally quickly. It’s also about try­ing to use the ma­te­ri­als you have left on site.”

Mr Browning said he had made mis­takes along the way, es­pe­cially when ren­o­vat­ing his first prop­erty at 63 First Avenue in South Townsville, which hit the mar­ket at the same time Queens­land Nickel col­lapsed. “That was the one I learnt the most from,” he said.

“I bought it at the right price but I over­cap­i­talised on it be­cause I wanted it to look sch­mick.

“I moved the util­i­ties dur­ing the project and if you move a whole kitchen you then have to redo all the plumb­ing un­der­neath. It rented out straight away so I just held on to that one as an eq­uity slinger.”

Mr Browning said he al­ways bought homes in city fringe sub­urbs that had g good floor plans.pl He is ren­o­vat­ing a prop­erty at 46 Mor­ris St, West End, which he hopes to have fin­ished in about three weeks be­fore list­ing it for sale. He said know­ing his trades­men well and mak­ing sure they were looked af­ter had proven vi­tal to his suc­cess.

“I know ev­ery sin­gle one of my con­trac­tors,” he said.

“A lot of peo­ple want to know how to do this but you need at least 14 dif­fer­ent trades to start off with.

“You have to get three quotes for every­thing but don’t al­ways go with the cheap­est be­cause you want to pay for qual­ity. Every­thing gets in­sured for seven years so you have to make sure you’re us­ing top- notch con­trac­tors.

“You also have to know the mar­ket con­di­tions and read the pa­per so you know what’s go­ing on around the place and just speak with peo­ple.” AT HOME WITH CARO, KINGI AND HALIA

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