An 8-year-old girl has achieved the remarkable feat of becoming one of the world’s youngest homeowners, having purchased her own home at the tender age of six.
Yes, you read that correctly – Ruby McLellan, hailing from Australia, holds the title of the country’s youngest homeowner. Alongside her two siblings, Angus, 14, and Lucy, 13, they collectively purchased their first home together.
The four-bedroom property, located in Clyde, Victoria, was acquired by the trio for $671,000 two years ago. Its current market value stands at $960,000, reflecting a significant increase in its worth.
The three siblings diligently saved up a $6,000 deposit by contributing through household chores and assisting their father in packing his book about property investing – which sheds light on why they started their property journey at such a young age. With the support of both their parents, they were able to realize their goal of purchasing a property.
According to a report by the Daily Mail, they are currently on track to acquire their next investment property by leveraging the equity in the mortgage of their current house. All three siblings are listed as owners, marking another milestone in their property investment journey.
In an interview with the outlet, Ruby expressed her sentiment, stating that she finds it “pretty cool” to have accomplished this feat at such a young age. However, she has chosen to keep it a secret from her school friends for the time being.
Cam, their father and CEO of property investment company OpenCorp, shared that he imparted the fundamentals of investing to his children, aiming for them to utilize this knowledge effectively in the future.
“In ten years’ time, when our kids might begin considering buying their own homes, the deposits could reach $200,000,” he remarked. “There’s no doubt that today’s youth will face challenges in affording a home without assistance from their parents.”
He further explained, “With four kids, we might need to come up with $800,000, so the logical approach is to make use of a small deposit now, invest in a property, allow its value to double, and then consider selling it.”
The family expressed their intention to retain the property until Lucy and Angus reach their early 20s, completing what Cam refers to as one “full growth property cycle.” They anticipate that its value will likely reach around $1 million by that time. This strategic plan aims to provide each of their children with financial assistance when they decide to purchase their own homes.
“Traditionally, every seven to ten years, property values double,” Cam elaborated on the strategy. “Having invested for 30 years, I believe the current conditions are favorable for investment, with expectations of decreasing inflation and projected drops in interest rates.”
Cam and his wife Felicity embarked on their journey to financial freedom by purchasing their first property together in their early 20s. Their perseverance and commitment have led them to achieve their goal of financial independence.
The property investor now dedicates only a few hours each week to maintain his cash flow, allowing him to enjoy more quality time with his wife and children.
“In the initial years, Felicity and I invested in existing builds, but with new builds, you can secure the ideal property in any location while fine-tuning the design to your liking. Additionally, depreciation is most significant at the beginning,” Cam explained. He further noted, “Moreover, tenants generally prefer new builds over existing ones, offering numerous advantages.”
So there you have it, folks, take those tips from Cam and see how they work for you. However, it’s worth noting that such strategies may be more feasible if you have a financially supportive figure like a wealthy parent to help lay the foundations of your project.
