“Our fifth annual Investor of the Year Award has revealed some of the country’s most shrewd investors yet, as we present the property powerhouses who are showing the rest of Australia how it’s done” boasts Your Investment Property Magazine in 2012.
Showing the rest of Australia how it is done, were winners Kate and Matt Moloney. They had built a solid portfolio of 16 properties, with an estimated value of $8.5 million and retired at the age of just 24.
Ten of the properties were in the coal mining boom town, Moranbah, three in Mackay and the remainder in Townsville, Fitzibbon and Miles.
The judges were impressed. Tim Lawless from RP Data said, “They picked the market cycle in Moranbah well, purchasing their properties in the early part of what turned out to be a very strong growth phase.”
David Hows, MD of Real Estate Investar applauded, “At just 24, Matt and Kate have achieved more than most investors do in a lifetime. They’ve shown significant skills across investment strategies and have seen amazing results. They also have a plan to ensure this is just the start.”
Tyron Hyde, director of Washington Brown said, “It’s obvious that Matt and Kate are on the path to glory! They have clear goals and stick to them, in fact, beat them. I particularly like the ‘de-risking’ strategy they are aiming for now, replacing mining income with more secure and diverse areas.”
None of the property experts understood the macro environment and China’s fixed asset investment boom that was creating insatiable, but unsustainable appetite for coal. (‘Has the mining investment boom come to an end?’ – Who crashed the economy?, 24th August 2012)
Yep, you guessed it, “They picked the market cycle in Moranbah well.” Just three years on, and a 75 percent plunge in Moranbah property prices according to Kate, has left her in a “debt disaster”. If Kate and Matt were to sell their portfolio now, they would “still owe the banks about three million of dollars (not including arrears interest and selling costs)” describing it as a “financial cancer.”