Michael wanted to own his own property, have security and stability.
Sydney seemed like the logical place to go in terms of employment, enterprise and education.
Childhood
Michael’s story began in the mid 1970s. His parents left South Korea and immigrated to South America. Michael himself was born in Brazil and then moved to Paraguay. By the time he was 5 and they moved to Australia he had a very well stamped passport.
“Sydney seemed like the logical place to go in terms of employment, enterprise and education. We also had other contacts who’d based themselves in Sydney.”
For most migrants, coming to a new country thousands of miles away is always a tough proposition. And for Michael’s parents, it certainly wasn’t easy. They had to make their own way and they couldn’t speak the language. Michael says their English even today is still “less than proficient”.
Somewhere, during these string of moves, the seed was planted deep in his subconscious: to own his own property, have security and stability.
Despite this they worked very hard, trying their hands at different retail businesses across Sydney. They did everything from corner stores to drycleaners and shoe shops. They were constantly moving. This led to a kind of nomadic lifestyle. Michael admits the continual relocation took its toll, “You get moving fatigue. The novelty of going to a new place definitely wears off.”
Somewhere, during these string of moves, the seed was planted deep in his subconscious: to own his own property, have security and stability.
The next stage
After school Michael studied commerce: “I wanted to get into the business domain”, he says. Straight out of university his first job was working for Coca Cola. He went on to hold senior strategic roles at Westpac, St George and AMP.
Soon after having his own children, Michael’s thoughts returned to property.
Partly driven by having two small children of his own and being on that journey as a parent, Michael says: “Once you’ve got family, stability becomes much more elevated in terms of your priorities - I kept thinking, what could I leave them?”
“I wanted to look after my family and invest in our future.”
Michael Kim
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An investment property with 68% capital growth in 3 years
In 2013, Michael approached DPN for help with property investment. After gaining a solid understanding of his financial position, DPN presented a strategy to build wealth and researched a range of properties that fit his budget and goals.
Michael decided on a house & land package with a dual income property in Kellyville, 36km North West of Sydney. The dual income property consisted of a 3 bedroom and a 2 bedroom dwelling on the same block of land.
The property was purchased for $773,142 and is now valued at $1.3 million, that’s an impressive increase of 68% in just three years.
A rental yield of 6.7%
In terms of renting the properties, Michael says: “We’ve had no problems finding tenants and they’ve been solidly rented since the get go… the original tenant has been in the 2 bedroom since it was built and we had one changeover in the 3 bedroom which was quite seamless.”
With the positive income generated from his property and the equity gained from capital growth, Michael can expand his portfolio.
The combined rent pays Michael $52,000 per year. When asked what he does with that extra money, he says: “I’m keen to expand my portfolio”. With the positive income generated from his property and the equity gained from capital growth, Michael can expand his portfolio.
It’s an amazing story, that the son of non-English speaking migrants could carve out such a successful career and make a splash in the highly competitive Sydney market.
“I feel like I’m on a fantastic journey. The experience so far has been quite positive. And so we’re riding along with it and seeing where it takes us.”