A young personal banker who bought an investment property for $830,000 with his sister in has highlighted the importance of investing as early as possible in order to achieve financial goals.
At the ripe age of 23, Jordan Papoulias, from Sydney, is already financially ahead and has a net worth of $259,000, a figure which has increased significantly over the past three years.
Jordan told Daily Mail Australia he started investing in August 2018, dipping his toes in both the property and share markets after being taught about gradually building wealth over time by his parents.
‘I have noticed a consistent grumble from many adults that they wish they could spend more time with their kids and travelling the world,’ he said.
‘I did not want the same outcome for myself, so I decided to act now.’
Jordan Papoulias, from Sydney, (pictured) is already financially ahead and has a net worth of $259,000, a figure which has increased significantly over the past three years
Jordan told Daily Mail Australia he started investing in August 2018 and purchased an investment property with his sister for $830,000 (pictured with family)
Jordan’s net worth of $259,000 is calculated by deducting all his debts and liabilities from his assets.
For this young banker, his assets include a property value of $550,000, $21,000 worth of superannuation, a share portfolio of $68,000, ‘family loan receivables’ worth $9,000 and a further $2,500 in smaller assets.
This total of $655,000 is reduced by his $36,000 student loan debt and $360,000 mortgage.
JORDAN’S NET WORTH BREAKDOWN:
Property Value (my 50 per cent share only, based off current market valuations) = $550k
Superannuation = $21k
Share Portfolio = $68k
Savings = $5k
Family Loan Receivables = $9k
Assets = $2.5k
Mortgage (50 per cent share only) = $360k
Student Loan Debt = $36k
Total assets ($655k) – Total Liabilities ($396k) = $259k
Prior to purchasing the two-storey investment property in the Hills Shire, New South Wales, Jordan and his sister lived ‘conservatively’ for two years and frugally tracked their expenses on Excel spreadsheets.
‘My sister and I loved the idea of buying a display home as it is relatively low maintenance and upkeep, we had a reliable tenant and we knew the quality of the finish was going to be premium,’ he said.
‘We saw potential in the area as there was a new shopping centre being built, its close proximity to schools, sporting grounds and public transport.
‘The deal was that the builders would construct the display home, we would buy it, then they would rent the property back from us and pay us 5 per cent of the property value per annum in rent.’
The property has four bedrooms, two and a half bathrooms and the land size is approximately 390sqm.
The investment property has four bedrooms, two and a half bathrooms and the land size is approximately 390sqm
Jordan learnt everything he knows about investing today from two key mentors – his dad and a friend called Daniel.
His dad used to be a private investor and has always encouraged Jordan to learn about stocks and property.
‘I remember as a child watching over dad’s shoulder while he was viewing his CommSec portfolio and was enthralled,’ he said.
Jordan described himself as a long-term investor who is ‘attracted towards industries and sectors with structural tailwinds’ that he predicts will grow in value over time.
He accesses these industries and sectors though Exchange-Traded Funds (ETFs) and has already invested in Cybersecurity, Robotics and Artificial Intelligence, Lithium and Battery Technology, Asian Technology, US Non-Financials and Australian Technology.
Jordan also uses the micro-investing platform Spaceship, which is a fantastic app for beginners to use and invest with as little as $5.
Other investing platforms available to use in Australia include CMC Markets, IG Group, CommSec, Sharesies and Pearler.
Jordan’s dad (right) dad used to be a private investor and has always encouraged Jordan to learn about stocks and property
Jordan also learnt further key strategies after meeting Daniel (left) through a friend
To describe investing to another person, Jordan created a ‘monopoly analogy’ that acts as a metaphor relating to real life.
As many are aware in the board game of Monopoly, the aim is to own as many properties as possible to charge rent whenever another player lands on that point, eventually leaving them bankrupt.
Jordan explained how it was a mistake if you were to play the game by simply passing ‘GO’ and collecting your $200 without buying anything.
‘As the game progresses, the player who did not buy any assets will always be paying the other players who did. No matter how many times they pass ‘GO’, they will never really get ahead,’ he explained.
‘I notice people around me who collect their pay checks each week (passing ‘GO’), without focusing on investing or buying any assets to generate future wealth for themselves.
‘The people who do invest may sacrifice cash in the short term, although in the long run they have an expectation that their investment will yield them a positive return.’
JORDAN’S ‘MONOPOLY ANALOGY’ OF INVESTING
In order to explain how investing can benefit your financial situation on a long-term basis, Jordan created the ‘monopoly analogy’
When playing the popular board game Monopoly, the aim is to own as many properties as possible to charge rent whenever another player lands on that point, eventually leaving them bankrupt
Jordan said if you were to simply go around the board and collect $200 when passing ‘GO’ without buying anything, you would think you would end up with more money – but this isn’t the case
Slowly as the game progresses the player who did not buy any assets will always be paying the other players who did
Regardless of how many times this player passes ‘GO’ they won’t get ahead of the others
Jordan said he drew the metaphor from this and related it to real life, as those who don’t buy assets (houses or shares) and live off their pay check are not likely to get financially ahead
Upon reflection of his investing journey, Jordan said his one key mistake is being overconfident about swift returns.
‘For some reason I think when we first open our online broker account, we get so excited and don’t put as much thought into what we’re actually buying as we should,’ he said.
‘I have made this mistake and some of my close friends also.’
Jordan’s one word of advice to others wanting to invest is to ‘just start’.
‘Whether you’re 15 or 50 years old, it’s never too late to invest and create a wealthier future for yourself,’ he said.