An IT professional who arrived in Australia as a student two decades ago has amassed a substantial property portfolio, now owning 56 homes, including 18 purchased in the past five months. Bharat Patel, a 43-year-old Sydney resident, insists his aggressive acquisition strategy is not driven by greed.
Patel’s real estate holdings are valued at approximately $20 million, generating nearly $780,000 annually in rental income. Despite his rapid expansion, Patel maintains a relatively low debt level of $7.5 million, attributing this to significant appreciation in property values since his initial purchases.
Building a Property Empire
Patel’s journey began in 2009 with a modest salary of $54,000 from his IT job, supplemented by part-time work at a fruit market. His first investment was a $322,000 house in Western Sydney, funded by $50,000 in savings. Over the years, his income grew, peaking at around $200,000 annually before he transitioned to full-time property investment in 2021.
Initially, Patel focused on acquiring undervalued properties where rental income could cover mortgage payments. He capitalized on negative gearing tax benefits and targeted areas poised for growth due to upcoming infrastructure projects, allowing his equity to quickly increase.
“I sacrificed a lot to get where I am now,” Patel said. “I live a basic life. I don’t have luxuries. I just want to fulfill my goals.”
Strategic Shifts and Bulk Buying
Facing challenges in securing financing due to existing debts, Patel adopted a new strategy: bulk buying entire apartment blocks. This approach enabled him to qualify for commercial loans, which are often easier to obtain due to their reliance on rental income rather than personal income.
Commercial loans, however, require a higher deposit, sometimes up to 30% of the purchase price. Despite this, Patel’s strategy has proven successful, allowing him to expand his portfolio rapidly.
“If you’re buying a unit block with more than three apartments, you can qualify for a commercial loan,” Patel explained. “Banks put much more weight on the rental income when assessing loan applications.”
Market Insights and Future Plans
Patel’s approach involves purchasing properties below their rebuild cost in high-demand, low-supply areas, ensuring value appreciation. He plans to continue acquiring properties until age 50, with potential plans to consolidate by selling some holdings thereafter.
While some criticize his rapid accumulation of properties amid a housing affordability crisis, Patel hopes to inspire others to pursue similar paths. He acknowledges the risks involved but remains confident in his strategy.
“I don’t stress about debt,” Patel stated. “I buy where property is going to make me money. I go where the market is going to grow.”
As Australia’s property market continues to evolve, Patel’s story underscores the potential for strategic investment to yield significant returns, albeit not without challenges and criticisms.
