An IT professional who arrived in Australia as a student two decades ago has amassed a remarkable property portfolio, now owning 56 homes. Bharat Patel, a 43-year-old resident of Sydney, has acquired 18 of these properties in just the past five months, yet he insists his actions aren’t driven by greed.
Patel’s real estate holdings are valued at approximately $20 million, generating nearly $780,000 annually in rental income. Despite the rapid expansion, he maintains a relatively low debt level of $7.5 million, thanks to significant appreciation in property values since his initial purchases.
The portfolio is reportedly positively geared, allowing Patel to enjoy a passive income of about $108,000 annually after covering loan payments, insurance, and other costs. He dismisses concerns that his buying spree might be exacerbating housing shortages for Australians struggling to purchase their first home, expressing a desire to inspire others.
“I know some people who have hundreds in Australia,” he said. “When I read about them I get motivation. They worked hard.”
Strategic Expansion and Bulk Buying
This year, Patel adopted a new strategy that accelerated his portfolio’s growth, including the purchase of an entire block of six units in Queensland’s Surat Basin and additional blocks in Dubbo, NSW, and Townsville. His approach involves acquiring entire apartment blocks, which he claims is more cost-effective than buying units individually.
Patel’s portfolio grew from 38 properties in June to 56, with further expansion expected as he finalizes contracts on another block of six units. This strategic shift marks a departure from his earlier method of acquiring individual properties.
From Humble Beginnings to Property Mogul
Patel’s journey began in 2009 when he purchased his first home in Western Sydney for $322,000, using $50,000 in savings. At the time, he supplemented his IT income with a second job at a fruit market. His financial situation improved over the years, peaking at around $200,000 annually before he launched a property business in 2021.
Originally from India, Patel arrived in Australia in 2004 as a student at the University of Technology Sydney and later gained permanent residency. His early investments focused on undervalued properties where rental income covered most mortgage expenses, supported by negative gearing tax benefits.
“I sacrificed a lot to get where I am now,” he said. “I live a basic life. I don’t have luxuries. I just want to fulfil my goals.”
Leveraging and Risk Management
Patel’s strategy involved identifying areas poised for value spikes, often due to upcoming infrastructure projects. As property values rose, he leveraged equity from existing properties to finance new acquisitions. However, as his debt grew, he faced challenges securing traditional financing, prompting a shift to bulk buying and commercial loans.
Commercial loans, which weigh rental income heavily in assessments, allowed Patel to continue expanding despite higher deposit requirements. He believes his success is replicable for those willing to take risks and work diligently.
“I don’t stress (about debt),” he said. “I have never been worried by debt. I buy where property is going to make me money. I go where the market is going to grow.”
Looking Ahead: Future Plans and Market Insights
Patel plans to continue acquiring properties until he turns 50, after which he may consider selling some to consolidate his holdings. His approach underscores a broader trend of investors capitalizing on Australia’s property market dynamics, despite ongoing debates about affordability and accessibility.
While Patel’s story may inspire some, it also highlights the complex interplay between individual ambition and broader market forces. As Australia grapples with housing challenges, the actions of investors like Patel will undoubtedly remain a focal point in discussions about the future of real estate in the country.
With a keen eye on market trends and a willingness to adapt strategies, Patel’s journey offers insights into the possibilities and pitfalls of property investment in a rapidly evolving landscape.
