Bulk-buy investors leap straight into the deep end

Not content to just buy a property or two, Scott and Lisa have in five busy years become landlords to more than a dozen tenants across a range of multi-unit investments.

Renovated two-bedroom Sydney apartment.
A $20,000 renovation of a first property in Pyrmont, Sydney, added $100,000 to the valuation price for the apartment. (Image source: provided by Scott Shuttleworth)

Why buy a single unit when you can buy in bulk?

As a couple of self-confessed maths nerds, Scott Shuttleworth and wife Lisa quickly recognised that, as is the case with groceries, buying in bulk made financial sense.

The pair have rapidly built a property portfolio with a rather unusual composition. While most investors gradually accumulate a property at a time over many years, Scott and Lisa within five years have become the owners of no less than 18 units across four different projects, as well as owning their own home.

The pair purchased their first property in mid-2020, a two-bedroom apartment in Sydney for $700,000. After a $20,000 renovation and six months of occupancy, the property was valued at over $800,000, representing a significant increase in equity.

Covid’s curtailment of spending did little for the wider economy but was one of the factors that spurred them onto the property ladder. In May 2020 they got married during lockdown and, unable to have a large reception, found themselves in a position to buy their principal place of residence with the savings that wouldve gone on a large wedding.

It was thereafter that their investment strategy took a bolder shift.

“We then turned our attention to blocks of units, recognising their potential to offer both land value and apartment-style yields,” Mr Shuttleworth said.

Property Location Composition Current Income (2024) Expected Income (2025) Last Valuation Current Valuation
Unit Block 1 South Albury 10 x 1-bed units $170,000 $179,000 $2.30m $2.50m - $2.60m
Unit Block 2 Regional NSW* 4 x 1 bed units + 3 x 2-bed units $72,000 $102,000 $1.18m $1.70m-$1.80m
AirBnB** Pyrmont 2-bed unit   $84,000 $0.86m $0.86m

*Regional NSW exact location not revealed for reasons of tenant privacy. **AirBnB income is post management and advertising fees.

Their first such investment was a block of 10 one-bedroom units in regional NSW, purchased for just under $1.3 million.

“The property required significant work, including structural stabilisation and comprehensive renovations but post-renovation, the annual rental income increased from $55,000 to more than $170,000.

“Contrary to what you might normally hear about regional property, our research indicated that quality regional areas often provide comparable long-term growth to metropolitan areas, with the added benefit of higher rental yields.”

As their family grew with the arrival of a daughter in late 2023, Scott and Lisa continued to seek investment opportunities. In early 2024, they acquired another block of seven units in regional NSW for just over $1.1 million.

“Thankfully this one wasn’t sinking!

“We have obtained development approval and are working towards completing the necessary improvements within a few months.”

Applying love of numbers to property

Now a Brisbane-based family, Lisa and Scott came together from vastly different backgrounds but with a shared love of financial mathematics and Game of Thrones.

Lisa was born in Moscow, lived in Paris and New York and grew up as a first-generation migrant in Sydney.

Those major metropolises were in stark contrast to Scott’s upbringing in semi-rural Byford in Perth’s outer southern suburbs, with cows and sheep as neighbours.

Lisa has established herself as a leading impact investor in the venture capital space and was recently recognised in the Fortune Change Makers list for her work in co-founding Equity Clear, creating a standard for gender reporting for private capital.

“I’m an extroverted nerd who did a triple major in advanced math, computer science and economics before pursuing a career in finance,” Lisa said. 

“Thankfully my career crossed paths with Scott and we bonded over our mutual status as finance nerds and Game of Thrones memes and, after many years of friendship, we became life-long partners and have since been blessed with our wonderful daughter.”

Scott, who holds a bachelor’s degree in economics and a master’s degree in financial mathematics, said he had considered a few career paths before turning to property investment.

“Once I discovered investments, I knew that was the direction I wanted to pursue.

“Before transitioning into property, I gained about 10 years of experience in banking and investments.”

Emphasis on first year of investment

When it comes to strategy, and determining the all-important location of property purchases, Scott said the first year’s performance of any investment was critical.

“Our strategy is centred on achieving a strong return on invested capital within the first year, followed by consistent capital growth and cash flow in subsequent years.

“These returns can be unlocked through renovations, development opportunities, or improved rental management, and to achieve this we rely on thorough research and a disciplined approach to property selection.”

He said that when selecting a location, they focus on areas with a reasonably sized economy and population—typically over 50,000 people.

“This ensures a steady pool of tenants with access to jobs, infrastructure, amenities, and social opportunities and also simplifies the process of finding tradespeople and suppliers to service the property.

“We generally avoid mining towns due to their economic volatility and steer clear of areas with excessive vacant land supply, as this can suppress both capital and rental growth.

“Properties in built-up areas with limited new supply are ideal for securing long-term growth.”

Targeting affordable properties has also been a cornerstone of their approach.

“We target affordable properties under $400,000 (per unit or house) because they tend to have consistent demand.

“We prioritise properties with strong land value relative to their purchase price, for example, we avoid buying units where the land component is negligible compared to the overall cost.”

He singled out most units in Melbourne’s CBD and inner suburbs as presenting that trap.

“Rather than chasing hotspots, which can be risky, we focus on avoiding negative outliers.

“Over the long term, most suburbs perform similarly, so my goal is to identify stable markets that are less likely to underperform.

Scott said they prefer enlisting buyers agents and have worked closely with Property Mavens along the way.

“Once we identify a potential deal—such as a rare block of units in a desirable area—we can quickly assess its viability because I’m already familiar with local prices.

“If it appears promising, we proceed with an extensive due diligence process, including analysing potential rental income, renovation/development scope, upside and costs, financing options, and determining our target purchase price.”

Weighing up worst case scenarios was also important, he said.

“We spend a lot of time considering, ‘What could go wrong?’

“Housing prices could fall, interest rates could rise, suppliers might go bust, renovation costs could blow out, among other challenges.

“The deal must remain viable even in the face of bad luck or unforeseen setbacks – or at least we need a way out without too much loss.”

The structural issues he detailed around the 10-unit block they bought was a case in point.

“We were aware it needed some major work—the giant cracks in the walls were hard to miss—but we didn’t realise the gutters and drainage were in such poor condition, which turned out to be an expensive oversight.

“I’ve since learned how to properly assess these issues.

“By the time we purchased my second block of units, my inspections were far more thorough and comprehensive.”

Advice for prospective investors

Scott had words of encouragement for those thinking of setting out on the property investment journey but admitted his strategy might not be for everyone.

“What works for us aligns with our skills, goals, and preferences but there are many ways to succeed in property investment.

“Some excel with high-end properties in the eastern suburbs, while others thrive in blue-collar areas.”

The key for those possibly still trapped in the rental market involved a degree of commitment and frugality.

“If someone is struggling to pay rent, it’s not the time to think about buying property.

“The priority should be investing in yourself, with a focus on enhancing your value to employers to secure a higher income.

“Simultaneously, practice disciplined budgeting to reduce expenses.

“For instance, I rarely buy coffee out—why spend $5.50 on something you can make at home for 30 cents?”

“Similarly, my work lunches cost less than $5, compared to the $10 or $15 many people spend and when applied consistently across different areas of life, these small savings add up significantly over time.

“The only thing I really splurge on is my family – if you get that right in life, that’ll account for 90 per cent of your overall happiness.

“The other 10 per cent is just gravy.”

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