Doing Mum Proud - Destiny Financial Solutions

Australian Property Investor, National
01 Sep 2014
General News, page 18 - 1,780.00 cm²
Magazines Trade - circulation 26,582 (Monthly)
Copyright Agency licensed copy
(www.copyright.com.au)
ID 294027044
BRIEF DESTINY
INDEX 1
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M/7
DOING MUM PROUD
The children of Margaret Lomas are continuing the family dynasty by already
owning more than $2 million in property.
m
f)
•
THE NUMBERS | MICHAEL LOMAS
Bateau Bay, NSW
. 3~b,ei
Apr 2014
$300,000
$13,000
$340,000
$3000
$400
THE NUMBERS | KRISTY AND NICK JONES
i
r. *
Mardi, NSW
3-bed
townhouse
Mar 2008
$205,000
$8000
$3500
$265,000
"| Dee Why, NSW
2-bed unit
Feb2012
$425,000
$16,000
N/A
$475,000
$450
Terrigal, NSW*
4-bed house
Dec 2012
$400,000
$15,000
$11,000
$500,000
$200
Terrigal, NSW*
5-bed house
Mar 2014
$460,000
build cost
Nil
N/A
$700,000 when
house is built
PPOR
$1,490,000
$39,000
$14,500
$1,940,000
$1000
TOTAL
$350
PAGE 1 of 2
Australian Property Investor, National
01 Sep 2014
General News, page 18 - 1,780.00 cm²
Magazines Trade - circulation 26,582 (Monthly)
Copyright Agency licensed copy
(www.copyright.com.au)
Lauren Day
ID 294027044
W @laurenanneday
BRIEF DESTINY
and working hard to get there. Having
this priceless knowledge hounded into
heir mum is one of Australia's
them, two of Margaret and Reuben's
most successful and well-known
children, Kristy and Michael, bought their
investors. She's purchased more
first property when they were both just 21
than 40 properties in cash flow positive
years old. For Kristy, that was in 2008. For
areas around Australia and helped
Michael, it was April this year, when he
thousands of ordinary workers reach the
purchased a three-bedroom townhouse
path to financial freedom. Margaret Lomas in Bateau Bay on the Central Coast. Of
is a household name and these days, a
course, being mini Margarets and the kids
multi-millionaire. So when two of her
with the 'property investor mum', it was
five kids started investing, you'd expect
very much a case of "no pressure" for the
generous handouts or cash deposits to
properties to perform.
give them a foot on the property ladder.
"We purchase in areas with potential
After all, mum has already done the hard
growth, close enough to cities that
yards and now she's reaping the rewards. haven't yet boomed but have good future
But nothing ever came easy in the
infrastructure on the horizon, with a good
Lomas household, Margaret's 27-yearfamily demographic but still affordable,"
old daughter Kristy Jones explains. Most
Kristy says.
people don't realise that Margaret was a
Proving that research and buying
single mum with three kids by the age of
well pays off, Kristy's first property in
30, then remarried and had another two
Mardi, New South Wales, experienced
children in tough circumstances.
solid capital growth. And, like mother
"Mum and dad moved to Sydney with
like daughter, she and her husband
$1000 in the bank and five kids," Kristy
Nick are now able to continue building
says. "We always had to save and use
their portfolio, because they opt for
coupons, buy No Frills brands and work
investments with strong cash flow. This
for what we had."
reduces holding costs, therefore helping
the Lomas property lovers continue
Property addict Margaret and her
to build and generate wealth. Brother
husband Reuben had always hoped for a
Michael also follows this formula. For
better future for their children and they
example, his townhouse cost $300,000 but
knew it could be created through bricks
and mortar. Growing up, the family would rents for a solid $400 per week.
always play a board game 'Cash flow
Kristy's first property isn't only cash
for kids'. They'd be sent to the grocery
flow positive, it's also had strong capital
store to find the cheapest tomato paste
growth, allowing her and her husband
or baked beans, based on the size and
Nick to utilise the equity and purchase a
cost. They were assigned jobs around the unit in Dee Why, Sydney.
house and for their efforts, they'd be given
"Instead of the beachside we bought on
$10 a week pocket money. From that,
the other side of the main road. We paid
they were expected to put $1 towards
$425,000 and it was recently revalued at
charity, $1 towards investing and set
$475,000," Kristy says.
another $1 aside for 'family activities'.
However, their most recent investment
They even had a $100 spending limit
has been the best by far. Kristy and Nick
every birthday. And forget Sea World - the were looking for a property on a large
little Lomases would always attend open
block they could potentially subdivide in
home inspections when they went on
the Terrigal area, north of Sydney. They
family holidays.
went halves with Margaret and Reuben,
purchasing a house for $400,000 when the
"As children we always wanted the
market was still relatively flat.
dream home but my parents would look
"When we applied for it to be
at the cheaper ones for investments that
subdivided, we were told it already was,"
weren't that appealing," Kristy recalls.
Kristy explains.
"My parents taught us the benefits of
"That block alone is now worth $230,000
delayed gratification, giving up something
and the house is worth $500,000."
small now to benefit later in life."
Kristy and Nick are currently living in
Margaret and Reuben's philosophy has
the house and building a property on the
very much always been a case of buying
second, subdivided block. They estimate
'bread and butter properties' in up and
the total build cost will be $460,000 and
coming areas, before they take off.
the property will be worth $700,000 when
It's not about the biggest and best but
it's finished.
the affordable investment with growth
They share the current mortgage with
potential. They also believe buying as
soon as you can afford to enter the market Margaret and Reuben. But Margaret has
T
INDEX 1
PAGE 2 of 2
obviously never believed in a free ride.
Kristy and Nick pay $200 per week in
rent and will pay $300 per week for the
new property.
"People always say 'your mum is an
investor it must be easy', but we do it all
ourselves," Kristy laughs.
"We'd never learn if it was like that."
In fact, it's those early lessons that have
shaped Kristy, Nick and Michael's attitude
today. They still give money to charities
each month, they still put money aside
for future investments and they save
before they spend. Oh, and they happen
to own more than $2 million worth of
property together.
Michael lives at home but he still pays
$100 board per week. He hopes for a
career in property, although admits
beating his mother's stack of investments
is a tough ask.
"In a way, everyone wants to follow in
their parents' footsteps," Michael says.
"I don't know if I'll ever get to the same
number (of properties) that my parents
have but I hope to one day. For now, I'm
happy with having one property."
And if they don't get there, there's
always that fallback plan of the good old
inheritance. But thanks to some tough
love from mum, the Lomas kids aren't
counting on it.
"We always joke 'how many houses will
we get?'" Kristy laughs. "They joke with
us they'll spend it but to be honest, I don't
even know how many properties mum
and dad own. My brothers and sisters'
goals remain the same as all of us - to
secure themselves for the future while
they're young, as our parents taught us."
The number of properties is irrelevant,
Michael adds. What matters are the
lessons they've learnt along the way.
"Ever since we
were young we were
+ BONUS
always taught if you
CONTENT
want something in
Use your smartphone
life, you have to earn or tablet and a QR
scanner app to see
it," Michael says.
"When I have kids Real Estate Talk's
Turner interview
I'll raise them exactly Kevin
Michael Lomas.
the same, because
it teaches you
about life."
Sounds like some
of mum and dad's
lessons have been
worth much more
than any investment
property and are
REAL'
paving the way to
ESTATE
an exciting future for
these young guns. QJl
19

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