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A real estate guru has shared his tips on where to buy property during the COVID-19 crisis, urging investors to act now before prices rise again after the pandemic.

Eddie Dilleen, 28, who grew up in public housing in Mount Druitt, western Sydney, decided to save for his first property at 16 by working at McDonald's and KFC, securing a $138,500 two-bedroom unit on the NSW Central Coast by 18.

He now works full-time as a property investor, with his 21 homes worth between $5.5 and $6million spread across New South Wales, Queensland and South Australia.

 

Mr Dilleen is still buying during the coronavirus pandemic, having picked up a commercial office in Brisbane for $200,000 - 30 per cent cheaper than it was advertised - and is encouraging other Australians to do the same. 

'My prediction for this year is that we will see less people buying homes to live in them, called owner occupied, due to COVID-19, but for property investors who are after investment properties there will be bargain prices,' he told FEMAIL.

'The banks have cut interest rates again to between 2.7 and three per cent which makes inflation, or price rises in property, inevitable especially in the lower to medium priced markets.' 

Even though the world is in a period of uncertainty because of the pandemic, Mr Dilleen believes prices will rise next year and 'you will wish you'd bought now'.

The young investor highlighted four properties he would feel comfortable purchasing in Australia to give FEMAIL readers an idea of what to look for.

In the Brisbane market, Mr Dilleen would take advantage of a three-bedroom home at 13/110 Johnson Road, Hillcrest, Queensland on sale for $188,000.

The rent per week would be $340, an annual rental yield of 9.4 per cent.    

In the city centre you can pick up a two-bedroom unit at 4/77 Farnell Street, Chermside, Queensland, for $269,000. 

Charging rent at $330 a week will give you an almost 6.5 per cent yield and it's a 'good quality location' 15 minutes away from the CBD, Mr Dilleen said. 

A three-bedroom house at 5 Macbride Court, Collingwood Park, Queensland, is a steal at $273,000, making rent of $340 a week for a 6.4 per cent yield.

The drive into the city is still only 35 minutes long, making it a close commute for those who need to work in Brisbane.  

In Sydney Mr Dilleen would lean towards a three-bedroom house at 9 Kista Dan Avenue, Tregear, New South Wales, because at a $399,000 purchase price the rent will be $350 a week and the yield 4.5 per cent. 

'I personally wouldn't buy in Victoria right now as the yields are too low,' he said. 

Speaking of his living conditions as a teenager in Sydney's west, Mr Dilleen said a lot of people didn't have jobs and he didn't know what university was until he left school.  

'I knew I didn't want this to be my future. So I started reading investment magazines and books like "Rich Dad, Poor Dad" by Robert Kiyosaki to learn about the property market.'

After securing his first buy at 18 Mr Dilleen took almost two years off to just 'do what young kids do'. 

He returned to the market by purchasing a number of units in southeast Queensland for between $100,000 and $200,000. He also has properties in Adelaide and more expensive ones in NSW.

Mr Dilleen saved for eight genuine deposits by working at a paint shop in Penrith, in an IT admin role and as a bartender, before using equity from his exisiting properties to secure the latter 12 houses.

The highest salary he had at any one time was $95,000 but with careful research he was always able to get a bank loan. Mr Dilleen has never been to university.

'It all comes down to the information you learn. People think you need a 20 per cent deposit to purchase, rather than a five per cent one,' he said.

'If I was starting again I'd get a five per cent deposit... people are worried about Lender's Mortgage Insurance (LMI) which is calculated off the purchase property price.

'So say you're buying a $1million property in Sydney and $50,000 is the five per cent deposit. The Lender's Mortgage Insurance might come to an extra $20,000.

'If you try to avoid spending an extra $20,000 and instead opt for a 20 per cent deposit (which is $200,000) it's going to take you years to reach, and if the market went up by 10 per cent during that time you would be spending more anyway.'

Mr Dilleen, who now lives with his wife Francesca in Parramatta, Sydney, said it's possible to rent and buy an investment property at the same time, but it does require some sacrifices.

'I didn't travel to Europe until I was 26 or buy designer clothes or fancy cars at the same age my friends were,' he said.

'I gave that up at the time because I knew in the future I would be able to do that.'

Only after settling on his 20th home did Mr Dilleen buy his dream car - a 1969 Ford Mustang.

Despite being told by family and friends that what he is doing is 'unrealistic' and 'impossible' Mr Dilleen continues to prove his naysayers wrong.

'People say it's impossible but then that same person would go out and buy a brand new car,' he said.

'I'm all for doing what makes you happy but if you're spending money on things that will be worth nothing in a few years... you can't criticise.' 

Eddie created a free and easily downloadable book called 10 properties by 25 which is available on his personal website eddiedilleenproperty.com.au.

You can also find him on Instagram here.