An IT professional who arrived in Australia as a student two decades ago has amassed a remarkable real estate portfolio, now owning 56 properties. Bharat Patel, a 43-year-old resident of Sydney, has purchased 18 homes in the last five months alone, bringing the total value of his holdings to an estimated $20 million. Despite his rapid acquisition pace, Patel insists his actions are not driven by greed.
Patel’s property empire generates nearly $780,000 annually in rental income, with his debt standing at approximately $7.5 million. This leaves him with a passive income of around $108,000 per year after covering loan costs, insurance, and other expenses. Patel’s strategy has allowed him to positively gear his portfolio, a feat not easily achieved in today’s competitive housing market.
From Humble Beginnings to Real Estate 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 was earning $54,000 annually in an IT role and supplemented his income by working at a fruit market. His financial situation improved over the years, with his earnings reaching between $120,000 and $150,000 by the late 2010s, bolstered by additional income from his wife, Vaishali.
By 2021, Patel had transitioned into a full-time property business, with peak earnings of around $200,000. His initial strategy focused on acquiring undervalued properties where rental income could cover mortgage payments. This approach, combined with negative gearing tax benefits, allowed him to build equity rapidly.
Strategic Shifts and Bulk Buying
As Patel’s portfolio grew, he encountered challenges in securing financing for new acquisitions due to his existing debt levels. In response, he shifted his strategy to bulk buying, acquiring entire apartment blocks rather than individual units. This approach enabled him to qualify for commercial loans, which are often easier to obtain due to their emphasis on rental income over personal earnings.
Patel recently purchased a block of six units in Queensland’s Surat Basin, as well as properties in Dubbo, NSW, and Townsville. He explains, “I buy in bulk. I buy whole apartment blocks, which I can usually get for cheaper than if I’d bought them separately.”
“If you’re buying a unit block with more than three apartments, you can qualify for a commercial loan and it’s easier to get finance,” Patel said.
Lessons and Future Plans
Patel believes his success is replicable for those willing to work hard and take calculated risks. He emphasizes the importance of purchasing properties below their rebuild cost and targeting areas with high demand and low supply to ensure value appreciation.
“I don’t stress about debt. 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,” he stated.
Looking ahead, Patel plans to continue expanding his portfolio until he reaches the age of 50. At that point, he may consider selling some properties to consolidate his holdings. “There is no magic number for when to stop buying,” he remarked. “I am 43 now and will keep buying until I am 50. At that point, I may sell off a few to consolidate, but we’ll see.”
Patel’s story is a testament to the potential for wealth creation through strategic real estate investments, even in a market where many Australians struggle to purchase their first home. His journey from a student with a modest income to a property mogul offers inspiration to aspiring investors across the nation.
