Young property investor Jono Frankle
How can you afford to buy a first home in Auckland? If you can secure a spot on a reality TV series, it could provide the perfect kick-start to a serious property portfolio.
That’s what young Aucklanders Jono and Karen Frankle did, landing a spot on the inaugural series of Our First Home in 2015.
Joined by Karen’s parents, the family worked together to renovate a two-bedroom house on a large section in Titirangi.
The idea was for the parents to buy the house, the whole family to renovate it, then auction it so the younger generation could use the profit as a springboard to buy their own home.
This concept worked well for the Frankles, who are profiled in the latest issue of NZ Property Investor magazine.
The house they renovated on the show generated the highest percentage profit when auctioned, which meant they won the overall prize of $100,000.
They also got to keep the profit of $191,400 made on the house and the two sums combined, along with Kiwisaver funds, allowed them to buy their first home.
That house formed the equity lynchpin that allowed the couple to move into property investing and trading.
Since then, they have completed several property trades in joint ventures and also acquired a number of buy-and-hold properties for themselves.
Jono Frankle said he doesn’t see himself as a full-time trader as he has lots to learn, but plans to stick to the property path.
“Property’s a great way to create wealth. I want to put myself in a position to have financial freedom.
“Trading gives me financial freedom for a short period of time, but I want it long term.”
Eventually, he would like to move into property tutoring as he wants to help other people into property too.
Here are his top six tips for buying your first property:
1. Talk to investors about their successes and mistakes.
2. Get to know your mortgage broker and assess your current financial situation.
3. Ask friends and family members about joint ventures, but get a lawyer to draw up the paperwork to ensure deals are fair to everyone.
4. Buy a cashflow positive property in a more affordable region.
5. Buy below value – look for distressed sellers.
6. Understand your long term financial goals and think about them when making decisions.
To read more about the Frankles’ property journey, along with the details of Jono’s tips, click here to get the digital issue of NZ Property Investor magazine.
Subscribe to NZ Property Investor magazine here to get great stories like this delivered to your mailbox every month.
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