Property Man

Reporter: Madeleine Kennard

He calls himself the cash kid.. In the fast lane to success well before he could get a licence...

Nathan Birch started saving for his first property at 13.... Five years later he had a 35 thousand dollar deposit and signed a contact for his first property.

"It was a humble house in Mt Druitt in western Sydney and i got excited from that i kept buying more properties out there because it was affordable and the numbers worked in line with my strategy." Said Nathan Birth

It's a strategy that's allowed him to grow a 10 million dollar property portfolio... His 72 properties bring in $700,000 in rent each year ... After making mortgage repayments and pays his expenses he is left with 200 thousand dollars in the bank...

"If i sold all my properties today i would have over 5 million dollars sitting in the bank account earning interest on it." Said Nathan Birch

Nathan's strategy is to find properties below market value with high rental returns .. Using equity to buy his next property.

"I am looking for properties that are bread and butter property, property that appeals to the masses it could be a house or a unit a villa or a block of units a bread and butter property where there is ability to rent it very quickly and get a positive income coming in from day one." Said Nathan Birch

He bought this Mt Druitt house in 2004 for 248 thousand dollars... 170 thousand dollars below market price .. Today it makes him $327 a week clear....

He purchase this property in orange for 55 thousand almost 100 thousand below market value and another 104 dollars a week profit is coming in.

And this 3 bedroom house in cranebrook nsw was 66 thousand below market value making him a weekly profit of 94 dollars a week.

"With any property purchase there are three main things as must which is buying the property below market value which this one was. When i bought the property it was 137 thousand other ones in the market were around 180 thousand dollars. It has to have a positive cash flow neutral to positive cash flow this one here went for 320 per week it puts 120 dollars a week in my pocket after all expenses." Said Nathan Birch

As the property market slows- and interest rates are on hold... Some developers say they're facing the worst housing market in 20 years...offering huge incentives to buyers.. Up to 50 thousand in gift cards and discounts... And with the government new home owner grant... It is a buyers market...

Andrew Wilson from property monitors.. Says Nathan's strategy is the key to success. The best places to find properties with high rental yields are suburbs on the fringes- but be warned there are risks...

And as for Nathan... His aim is to reach 100 properties in the next year.

"If i can do it anyone else can!" Said Nathan