A landlord with 108 properties has a message for renters – the country needs more people like him and and he’s part of the solution to the housing crisis.
Sam Gordon, 34, built an investment empire worth an estimated $48million after 15 years of dealing in n property.
A recent clip shared on his social media sparked a furore as employees of his investment buyers’ firm revealed the size of their property portfolios while they were on a lavish yacht for their Christmas party.
Viewers blasted the partygoers as out of touch and ‘the whole reason is in a rental crisis’.
But Mr Gordon told Daily Mail that many Aussies don’t understand the work it took to get to his position.
‘You get some people that have taken massive inspiration from (the party video), and then other people who want to throw stones and try and pull you down,’ he said.
‘People see the end picture now and – I’ve done very well for myself in 15 years – but I’ve been doing this for almost half the time that I’ve been alive.
‘I think people just need to realise that it is literally accessible for anyone to do it (invest in property).’
The 34-year-old said investors like himself weren’t part of the housing crisis in , instead, they form part of the solution.
He argued the Hawke government’s shift to favour private acquisitions over government owned public housing meant investors had been left to pick up the slack in the rental market.
‘If it weren’t for private investors like myself, the government wouldn’t be able to afford to supply all the rental properties that ns need,’ Mr Gordon said.
‘We’re filling a gap that the government can’t, and taking pressure off the public housing system.
‘The n government holds less than one per cent of property in , and 30 per cent of all properties are rental properties.’
In the 70s and 80s, public housing made up about 10 per cent of residential dwellings built but over the past decade, it’s barely scratched three per cent.
‘If someone’s willing to put the work in and go down the avenue of building a portfolio, it’s literally what the government wants for people to replace their own incomes, or do that as close as possible, or even more,’ Mr Gordon said.
‘Then, when they get to retirement, they’re not relying on the government for the pension.’
Mr Gordon’s portfolio includes commercial properties and decommissioned public housing stock that he has renovated and put back on the market.
‘I buy a lot of stuff that almost 95 per cent of people couldn’t buy, and 99 per cent people wouldn’t buy, and do a lot of renovations (on the properties) to bring them back,’ Mr Gordon said.
‘I bought dilapidated, run-down, unliveable (homes) direct from banks, like repossessions.
‘And then we renovate and bring that up to standard, and then a lot of the time we’ll build a secondary dwelling, which is actually additional rental stock into the marketplace.
‘The simple fact is that we’re obviously not going to do that for free, it’s not a charity.
‘We’re doing it as a business, but we’re also providing on that end as well.’
Many have criticised the country’s move to privatised housing stock, with detractors arguing discounts provided by social housing are a life-support for those in urgent need of a home.
The gap between subsidised government rent and the private market sits at about $15,000 per rental home per year as according to the most recent estimates.
The Albanese government has been called upon to provide more social and affordable housing for ns in the current inflationary market.
However, when it comes to personal investments, Mr Gordon said he didn’t believe in limiting Aussies’ investments and encouraged investors to take advantage of current market conditions.
‘I 100 per cent do not agree with with capping people on what they’re willing and able to do (to get ahead).
‘It is open and available to anyone, but it is a sacrifice. Is everyone willing to do the same amount of sacrifice? One per cent of people will achieve what the 99 per cent of all people won’t work to do.
‘I think people need to realise that it is literally accessible to anyone to do it, if you’re willing to want to educate yourself around how to do it properly.’
When he was 19, Mr Gordon put $30,000 of savings he’d accrued for a Toyota Supra into his first investment property in Wollongong after his father suggested it.
He said he then researched investment information and didn’t worry about a university education, instead pursuing his dream of property ownership.
He’s since grown his portfolio to an estimated $48million as well as founding his investors’ buyers’ agency and related podcast, n Property Scout.