From first failed investment to 21 properties: how one investor built a national portfolio

Within a bulging family portfolio of 21 properties, the first purchase was the worst performing of the lot.

For Koula Lee, who now calls the leafy southern Sydney suburb of Peakhurst home, that ill-fated first step into real estate could have been her last.

But rather than be deterred, she took it on board as a cautionary tale and set about educating herself on the property market and finance, and knuckled down through hard work and social sacrifice to have another crack at the market.

The result has been staggering; 21 properties acquired around the country.

Nine of those were purchased as the sole owner, with the others coming through collaboration with her husband Glenn.

Ms Lee’s first investment property purchase was a house and land package on the New South Wales Central Coast, bought at the age of 31.

“My family kept telling me it was not the right time to buy and I should wait but that had been their line for years, so I went ahead anyway without family awareness or support.

“I had worked jobs since the age of 13 and always been a keen saver, as my parents taught me saving money gives you options and choices and I had seen the benefits.

“I was always interested in property but living in Sydney I thought I would never be able to afford it.

“I studied at university in Newcastle and saw opportunity in areas accessible to both Sydney and Newcastle, like the Central Coast.”

She made a lot of mistakes on that first acquisition. She paid too much. There were build delays. Council problems arose.

“Sadly I had no real plan and just jumped right in to get my foot in the door and it has been the worst performing of all my investments.

“I was recommended a buyers agent who was also a mortgage broker and was recommended this house and land package purchase.

“I have learnt a lot since and will never buy an off-the-plan property again due to supply/demand dynamics that impacted capital growth as well as the seller kickbacks.”

From money-spinners to meth labs

In 2013, Ms Lee’s stated aim was to own 10 properties.

The first property hadn’t gone to plan but she knew enough to know that property overall still represented a potentially lucrative investment.

One area that hadn’t seemed as difficult then was obtaining finance.

“Once the first property was rented out, it all seemed financially very easy so I quickly bought two more in Newcastle that were much cheaper and have performed significantly better.

“These were all purchased through buyers agents.

“I then moved overseas where I worked for four years.

“My current and only PPOR was purchased in 2023, I already owned seven investment properties by that time, and through the investments my home is now paid off.”

Performance across the portfolio has, as could be expected, varied. From one home that was transformed by tenants into a meth lab, to some serendipitous timing ahead of Covid, Ms Lee has seen the full spectrum of outcomes.

The best performing property is the Adelaide boarding (rooming) house that settled a week after the borders shut due to the pandemic.

Ms Lee was close to pulling out of the purchase, but it has subsequently delivered close to a 200 per cent increase in six years and generates high cash flow.

Medical research and real estate strategy unite

Real estate was not something in which her family had a pedigree and for a while seemed an unlikely route to financial stability.

Ms Lee grew up in Sydney on the Northern Beaches, the middle girl to parents who came from small regional towns in NSW.

“I married later in life, in 2024, and have two adult step kids.

“I wanted to join the police as a forensics crime scene officer but it was not meant to be, so I fell into medical research, which it turned out I loved and that led to further study in that field and a long career.”

But that meticulous approach to research, once applied to the field of property investment, soon reaped results.

So what has been the purchasing strategy that has led to such an expansive property portfolio?

“I’m mainly seeking capital growth balanced with a decent rental yield, so I am not too out of pocket when holding the property and I try to make sure I am geographically diverse to help spread the risk.”

“The location preference is for homes in a large capital city with good fundamentals - multiple industries, employment, infrastructure spend, population growth, good schools, hospitals and transport.

“I always buy below the median for the suburb and keep the budget to what most people can afford relative to the market at the time.

“Budget is also dependent on access to lending.

“In 2018 I joined a property mentoring program that helped with practical tools to identify areas in which to invest and then I used buyers agents.”

Where are Australia’s next property hotspots?

As they move closer to retirement, Ms Lee and her husband are starting to think about scaling back the portfolio.

“The goal was always to have options – to stop working if I wanted, to take a career break, and to have security if I’m made redundant or out of work.

“There’s also the desire to have funds to travel.

“We’ll now start to sell down the portfolio as we transition towards retirement or part-time work, which we aim to do in about three years.”

The couple recently sold a property in Brisbane (not one included in this portfolio list) but Ms Lee still sees plenty of opportunity for investors looking to enter the market or expand a portfolio.

“I see the next year or so panning out a bit like the last, with Perth and Brisbane still appearing to be well positioned as high growth performers based on their respective fundamentals.

“Melbourne may start to grow more towards the later end of the year, as it is now the most affordable major capital city.

“While high-performing Darwin and the Northern Territory are, for me, far too volatile and I believe fuelled by investor activity rather than strong fundamentals.”

Ms Lee has some advice for young people who may be struggling with rent and don’t believe they can do what she has done.

“What worked for me was to rent where I lived, or to share or rent out rooms to keep costs down.

“Spend less than you earn and invest the difference.

“When you can, buy where you can afford and find additional income streams to be less reliant on your day job.

“I try to only eat out when meeting up with friends and as much as possible I invite people over, have dinner parties, BBQs, high tea, picnics etc.

“I really love cooking and hosting, so this made it a lot easier and is significantly cheaper.

“It’s not for everyone but I enjoy it and it has helped with savings.”