Investor In Focus: David Spinks
Diminishing residential returns meant a change of strategy for David Spinks, who turned to commercial investment to safeguard his retirement funds.
Anchoring his self-managed superannuation fund through commercial property, David Spinks walked away from residential real estate investment following disillusionment and diminishing returns.
A portfolio holder for over 40 years, David started out with the goal to create an independent financial future and provide for his retirement. By taking modest gains, he continued to roll his funds into “bigger and better” investments - keeping his risk low but still turning a profit.
Since leaving paid employment, David’s continued to seek out opportunities to make his assets work for him and provide a comfortable retirement income.
As the son of itinerant construction workers, David grew up moving from town to town without a place to call home. He began to see property as a place to either live in or as a base to build wealth, setting a fire in his belly that saw him buy his first investment property in his early 20s. But being young and single, getting finance proved to be a problem as he added to his portfolio - despite the fact he was on a great income as an internal auditor with a major construction company.
“I always found that the banks didn’t really want to talk to you,” he says. “I had a lot of trouble with financial institutions.”
Persisting, David managed to keep moving forward with a firm eye towards the future.
“I made a decision way back in the early days that the only way I was ever going to live in retirement was through a Do It Yourself solution,” he says.
Content to achieve modest gains of even 10-20%, David rolled his money from one investment into another and made it grow each time. “I would sell to step up to something better,” he says.
David’s budding interest in property sparked a change of career and he became a real estate agent for 30 years prior to retirement.
Enjoying helping people with what to buy and where, David says he always advised people to purchase properties they could keep an eye on - something he’d recommend new investors do today.
With a strong preference for property within 50 kilometres of his Central Coast home, the one-time David went off-strategy it came with a nasty sting in its tail that forever put him off residential real estate investment.
Combined with his disillusionment around diminishing rental returns, David knew it was time to walk away from any subsequent residential investments. “The return on investment isn’t there anymore,” David says.
Instead, he’s opted for commercial property requiring about half the outlay of a house, but currently offering a higher return.
The most recent of these investments has been a multi-use commercial unit in the new Quantum Space facility in Wyong, purchased through Michael Perry. As well as being a high yield investment, it also offers the opportunity to avoid the normal hassles and maintenance expenses of residential investments.
“I like the growth that the area has,” David says. “There are a lot of residential subdivisions around and a good population moving to the area.”
With major companies and businesses also relocating, David’s confident he’ll get a good return on investment. Further, he’s been careful to secure a property with good exposure to the front of the building which he says makes it easier for tenants to erect signage and therefore a better rental proposition. The units are also multi-use so suite a variety of tenants that are popular in the area now and into the future.
If he could turn back the clock, David would have got into commercial property earlier. “I wish someone had told me at the age of around 22 to 24 to open my own super fund,” he says. “There’s no capital gains on those properties when you sell them past the age of 60.”
David says new investors should do their research and be confident to go with gut intuition. Additionally, be wary of who you take advice from and be prepared to make some errors, be involved and actively participate with your investment.
You’re better off being the master of your own destiny, rather than relying on whoever’s running a superannuation fund to safeguard your retirement. All it takes, he says, is for unrest overseas to create negative growth on the share market.
Instead, you could buy a $300k Quantum Space commercial unit through superannuation and hold it until retirement when it’s hopefully worth double the money.
If a high yield, capital growth investment with a guaranteed return sounds like it will help you reach your dreams faster, then visit the Quantum Space website now by clicking here www.quantumspacewyong.com.au and receive your FREE Investor Pack including floor plans, brochure and outgoings.