Any idea what happened to this guy?
RORY SCANLON, 59, isn’t worried that his pension fund of €150,000 will only provide him with a small annuity in retirement. Scanlon has used gearing to purchase properties over the past 27 years and now owns more than 20 properties.
“There were plenty of times when I would be sitting in my office and insurance salesmen would come and try to sell me a pension plan. I used to enjoy telling them that they were sitting in my retirement fund.”
Scanlon now owns six properties outright in Ireland and he has a share in a further three. He owns six properties in Britain, three in Spain and another two in the Caribbean.
Today, he receives €15,000 per month in rental income and pays €10,000 a month in mortgage repayments. Although his monthly profit is just €5,000, Scanlon is happy that the value of the properties has increased substantially and continues to rise.
“In my opinion it’s the best retirement fund I could have. If I buy a property today for €100,000 and it goes up in value by 10% over three years, that’s a big return and obviously a good investment.”
“Everyone says equities produce the best returns on a long-term basis but I think property is a better option because you can leverage it.”
Scanlon says that the only use he has for his pension is to use it as a deposit for his next investment property.
“I will continue to invest for as long as possible; the day I retire as a property investor is the day I die.”
The Times, February 2005
Dealing with noisy tenants, leaking washing machines, management agencies and having to pay a “levy” to repair the leaking roof or broken gate of a shoddily built egg box is not my idea of a peaceful retirement.
If you’ve got a number of properties and can hand them over to a professional management company, great. But I don’t think this is the reality for most handlebar-moustached land lords.
bought an office block in Clontarf, Dublin, for €32,000. Today, the building is worth €1.8m, giving him €100,000 a year in rental income.
This guy ain’t the average celtic pup inverstor, he’s not bought a second house to rent at the height of the boom, in fairness i’d say smart guys like this will not be the ones getting burned.