Real estate market: Brothers reveal how they built a $2.5 million real estate empire in New South Wales
Two brothers who dropped out of high school in 10th grade have managed to build a $2.49 million real estate empire in just two years.
Jack and Harry Gray, ages 23 and 22, own three regional properties and worked hard to salvage the deposits without the help of their parents.
Instead, each had two jobs at the same time. The boys left school early, before the end of the tenth grade, and began working as handymen, taking plumbing apprenticeships.
But each of them also took part-time jobs at fast-food restaurants to make extra money.
The Gray brothers follow a similar austerity strategy: Find a job that pays plenty of overtime and cut spending further.
Jack and Harry Gray, ages 23 and 22, own three regional properties after struggling to save up without the help of their parents. Pictured are the Gray brothers with their investment advisors
The boys left school after the 10th grade and began working as handymen, taking plumbing apprenticeships. But everyone also took part-time jobs at fast-food restaurants
Jack Gray (left) outside the property he now rents in Thornton with his younger brother Harry
Jack credits his mother with urging him to save more than he spent, and by the time he was 21 he had already saved $96,000.
“Our parents were always very strict about saving. “I didn’t really have a key card or debit card until I was almost 18, so I was probably pretty sensible,” Jack said.
Both brothers still live at home and each pay $100 a week for meals.
They keep their costs as low as possible and admit they make sacrifices.
Jack only goes out on weekends and never during the week.
They tend to choose specific events like festivals that they want to attend rather than going to the pub just for the sake of it.
“I’m very happy with my life.” “I don’t really feel like I’m missing out,” Jack said.
After receiving financial advice, Jack put down a $76,000 down payment to build a new home in Thornton, in New South Wales’ fast-growing Hunter Valley.
He set aside $20,000 as a contingency buffer for future expenses.
The four-bedroom house cost him $630,000. Upon completion, the property was valued at $920,000.
That meant that within two years, Jack had made a $290,000 return on his investment.
He now rents it for $700 a week, which means it’s earning a whopping 5.7 percent gross yield.
Jack’s younger brother Harry took six months longer to post bail on a three-bedroom house in the small town of Killingworth, just inland from Lake Macquarie.
He paid $575,000 for the home, which was built on a 1,000-square-foot lot in late 2021.
Two years later, after spending $10,000 on renovations, the home is now worth $690,000.
The brothers decided to enter the market again, this time together.
They are building a four bedroom home in the Hunter Valley that when completed is expected to be worth $950,000 based on current market conditions.
The brothers are now planning a vacation together in Europe. Jack has booked two other trips in addition to his European vacation.
But both plan to start saving again immediately and invest in more real estate, even as they admit, “It’s not easy.”
Both brothers have chosen to build homes in the Hunter Valley, an up-and-coming area
The Gray brothers are now planning to vacation in Europe together after earning millions
“I wouldn’t mind owning a few more houses before 30,” Jack said.
“The way I see it, I can do it now while I’m young and I think the money I’m making now is worth a lot more than if I started investing when I was 30 or 40,” said Jack.
Their financial advisor, Michael Pell of Propell Property, said the Gray brothers are “hardworking and motivated”.
“They understand the need to invest and are now doing as much effort as they can to build a profitable portfolio so they can create passive income and decide whether or not they want to work going forward,” Pell said.