A property investor with over 200 homes to his name has revealed how one worrying economic factor will make him a billionaire by 40.
A property investor with over 200 properties to his name claims he is on track to be a billionaire by age 40 because of surging house prices.
Binvested buyer’s agency founder Nathan Birch’s property portfolio is worth in excess of $100 million and includes commercial and residential properties across Australia.
It’s a property empire he has been building for over a decade since he just 24. Currently 36, Birch first predicted he’d be a billionaire by 40 when he had a property portfolio of $35m at age 30.
Mr Birch claims he is on track to achieve the feat of because of his view Australia was on the cusp of hyperinflation due to government stimulus injected into the economy during the pandemic.
“We’re already in the early stages of hyperinflation and I expect we will see the full effect in the next two year,” he said.
Mr Birch pointed to the fact house prices were rising across the world despite the pandemic triggering one of the largest economic crashes since the great depression.
“Is it the manipulation of the currency that is sending prices up for houses — not that homes are worth more,” he said.
Hyperinflation is extremely high and usually accelerated inflation, which erodes the real value of currency as the price of goods increase. Venezuela has experienced hyperinflation since 2016, with inflation levels increasing by as much as 3 million per cent in 2019.
With Sydney home values growing at their fastest rate since 1988, Mr Birch said the Reserve Bank of Australia’s money policy and government incentives was driving inflation levels up.
The latest inflation figures from the RBA show inflation grew 1.1 per cent during the March quarter, after growing 0.9 per cent in the previous quarter.
“Everything has become more expensive in the past year from the price of homes to bread,” he said.
“I was buying property in Mt Druitt for $200,000 years ago and everyone told me I was stupid, but now they’re selling for $600,000.”
Mr Birch said his portfolio of over 200 properties has risen by over $15 million in the past three months because of inflation.
“I haven’t had to lift a lift finger for it to rise that much,” he said.
With a cult following online, Mr Birch said Australians should look to investment that generates cash flow to keep returns in line with inflation, and to not be afraid of debt taking on more debt.
“Smart people are taking on debt at the moment so they pay that debt with tomorrow’s money,” he said.
Archistar chief economist Dr Andrew Wilson said Wednesday’s inflation data showed Australia was well off from seeing a major uptick in inflation.
“We are way off the RBA’s three per cent inflation target, and it would take a long period of economic growth for us to get close to that,” he said.
Dr Wilson said while inflation played an indirect role in the housing market, it was not driving record price growth in the property market.
“Low inflation and income growth has resuled in low interest rates, which in turn has made housing more affordable to many people ,” he said.
“The huge growth in house prices we’re seeing won’t last in the long-term as interest rates and incomes are going no where, which means there will not be anything to keep that growth up,” he said.