Catherine Bakos

Meet Catherine Bakos, this month's Woman in Focus, a former mortgage broker and now property advisor,
investor and mentor at Empower Wealth. She purchased her first home at the young age of 21, timed the market well, and has been hooked on property investing ever since. She currently owns 17 investment properties, with seven properties now earmarked for either renovation and/or subdivision and a significant renovation in progress
on her owner occupied home.

Never Looking Back

Catherine started out as an industrial chemist, which she considered a boring job. She purchased her first home in 2003, working nightshift at a deli to save enough money for the deposit. After a rudimentary analysis of growth patterns in Melbourne's south and discovering she was priced out of Bentleigh, Cheltenham, and Mentone, Catherine began looking at Parkdale in an effort to get immediate capital growth.

"I loved researching potential capital growth areas and timed the market well that first time. I was hooked after that and couldn't stop at one."

Her bookshelves are now filled with property files and Catherine couldn't be happier.

Taking it to the Next Level

 
Catherine now owns a total of 17 investment  properties - all great success stories.

For example, one three-bedroom house purchased in 2003 for $197,500 is now worth $550,000 and rents for $280 per week.

Two properties are earmarked for subdivision and development when the time is right economically.

"I always buy to hold, but some properties lend themselves to immediate improvement, while others can happily tick away and represent longer term potential."

Here is a snapshot of Catherine's Portfolio
 

*principal place of residence

Knowledge is Power

After discovering her passion for real estate, Catherine wanted to help other people realise their dreams as well and now works for an organisation that facilitates this passion . She enjoys helping her clients at every stage of their investing voyage and has advice for first-time investors who may feel nervous.

"Talk to your peers and share your experiences. Knowledge is power and with this power comes courage. I always say to my first-time investor clients, 'Okay, so let's look at worst case scenario.' From there I know that no matter where their immediate fears take them, they know that deep down it's a well thought out strategy with a Plan B if the worst case scenario ever occurs."

Strategy changes with Economic Times

As a result of being exposed to the mortgage lending industry - and marrying a business manager who asks her to present a business case every time she finds a great investment property - Catherine is more cautious and researches carefully these days. She uses rigorous checklists based on price, return, capital growth potential, rental yield growth potential, infrastructure advances, demographic shifts and that elusive "wow factor."

"I always aim for that Holy Grail: the perfect balance of strong yielding, high capital growth, and hotspot finds."

One advantage of the current market is the lack of tough buyer competition. Catherine suggests investors capitalise on the current market slow-down and improve their negotiating skills.

"Sometimes it is a case of being patient and waiting for rental to grow. In this market right now we are looking to enjoy some rental growth so I don't imagine it will be long before I am writing my next business case for my husband!"

Catherine's Tips

The biggest challenge for any multi-property investor is borrowing capacity. Catherine uses banks and second tier lenders to finance her property investments. Her broker knowledge holds her in good stead each time she finds a great opportunity. Never under estimate the value of a good broker.

"Always use a good broker who knows about your strategy and understands lending policy back to front."

Catherine also has a few tips for renovating properties:

• Always have a budget and a 20 percent buffer for renovation costs.
• Find reliable and trustworthy trades people by getting referrals.
• If you are on a shoestring budget, replacing kitchen benches, and handles and tap fittings in the kitchen and bathrooms can make a big difference. You can also save a lot of money by learning how to do wall tiling.

And don't be afraid to make mistakes along the way. That's how you learn.

"I could write a book about the lessons I've learnt along the way. I've made so many mistakes, but I never look back. I just bank the knowledge and learn from the mistake. The worst mistake I made was selling a great property based on advice from my Dad to reduce my debt."

The Future Looks Bright

With her successful property investments, Catherine says she is on track to have a different lifestyle in the upcoming years. She pictures herself "financially free" in five years, but is still hooked on property investing.

"I love what I do too much to stop and retire."

And for those who want to follow in her footsteps, Catherine sees Property Women as a worthy resource. "A network of likeminded investors is one of the most motivating ways to keep your momentum up. I would certainly recommend joining PW."