![Marc Cuscino is a 26 year old who lives at home and owns three investment properties.](/content/dam/images/g/v/b/3/2/f/image.related.afrArticleLead.620x350.gvapmx.png/1490946927478.jpg)
Marc Cuscino, 26, lives at home and has three interest-only investment properties worth about $1.5 million in Sydney and Queensland.
Mr Cuscino, who works in finance, started building his portfolio five years ago while studying construction and property economics. He estimates his equity is about $1 million. He would be targeted by the bank regulator's crackdown on interest-only loans but he's not worried.
"Any increase in interest rates or toughening of conditions does not make me happy. But I'm very optimistic about the long-term outlook for the property market," he said.
A rising population, particularly around Sydney, and about 100,000 migrants a year, will continue to buoy demand, even if there are occasional price and demand dips.
"I've studied the markets and understand the investment cycles," he said, referring to rising rates and growing regulatory pressure on lenders to keep a cap on hot markets.
"I'm in the market for the long term. That's not two or three years. I'm talking 10 or 15 years. I believe it is a lower risk investment than shares," he says. "We have seen volatile markets before. Property markets typically swing through seven-year cycles."
His first purchase was a two-bedroom, one bathroom apartment in Ryde, which is about 13 kilometres north west of Sydney. The property is financed with a 30-year, interest-only Bank of Queensland three-year fixed rate loan of 3.99 per cent. The loan to value ratio is 80 per cent and the property is rented.
He also invested in a four-bedroomed house in Redbank Plains, about 30 kms south west of Brisbane. It is also financed with a 30-year, interest-only Bank of Queensland three-year fixed rate loan at 3.99 per cent. It also has a 20 per cent deposit and is rented.
The latest is an off-the-plan, two bedroom apartment in Campbelltown, which is about 50km south-west of Sydney. The financing terms are the same as the previous investments. His deposit was 10 per cent. The apartment is near completion and he is confident of finding a tenant. "I got a good discount," he said about the deal.
Mr Cuscino has been advised by his father, Vince, manager of an automotive spare parts outlet, who owns about seven commercial properties.
"I would not be happy about a rate rise but know I could absorb it," he says about the possibility of a loan rise. "Even if they doubled I could see it through."
Mr Cuscino said he had earmarked savings to supplement payments if there were financing problems.