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This eight-year-old Aussie is raking in around $100,000 a year thanks to a few savvy moves.
The early bird gets the worm, and the insane profit too it seems.
An Australian girl, one of the country’s youngest investors, who purchased her first home aged just six is already looking at a massive profit just two years later.
Melbourne’s Ruby McLellan made national headlines as Australia’s youngest landlord when it was revealed she and her three siblings has bought a house and land package in the Victorian capital’s outer suburbs.
The home is already shaping up as a savvy investment for Ruby and her siblings after a recent evaluation stated it has grown in value by almost $270,000 since it was purchased.
The McLellan kids saved up the pocket money from their weekly chores to help buy the Clyde home in 2021 for $671,000.
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Ruby McLellan, billed as Australia’s youngest property investor, is outside her house and land package in outer Melbourne. Source: Supplied.
According to a revaluation, the home is now worth $940,000 according to the kids’ dad Cam McLellan.
Per PropTrack, the median house price in Clyde in southeast Melbourne is $677,750.
Carved up four ways, that means Ruby, at just eight years old, has almost $70,000 in equity.
With her brothers and sisters, Lucy 13, Gus, 14 and Hannah, 17, Ruby also owns another property in Melbourne’s north worth around $850,000. That puts Ruby’s equity share in the two properties to around $170,000.
An income of about $80,000 a year is close to the average annual salary in Australia. In comparison the average salary for a retail assistant is $60,000.
An accomplished investor himself, Cam McLellan has revealed the properties are held in a trust that he directs and the plan is for the children to offload the homes within the next 10 years.
The children will then have enough money to build on those investments.
One of the main conditions of the trust is that any profits the kids make from the homes have to be put into a property purchase, either a residence or another investment.
“It will be enough to get started,” Cam said.
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Ruby and her siblings already own two homes.
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“Not enough that everything is done for them and they don’t have to do any of the work, but at least it gets them started.
The older children contributed about $2000 each for the home in Clyde. The rest of the deposit and stamp duty costs were paid for by Cam and his wife Felicity, who drew equity out of their own investment home to help fund the purchase.
“The idea is not for me to just buy them something and just throw it into a trust for them,” Cam said.
“They’ve been involved every step of the way. Making them learn about the process of selecting property was just as important as giving them a bit of a knee up in the market.”
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Cam said Ruby had already learned a lot about money and investing it, despite her young age.
“She comprehends that someone lives in a house and pays us rent and that makes it possible for us to keep the property. She knows this concept,” he said.
“She’s now beginning to ask about what happens when we sell. It is sinking in. The concept of investing has been planted. Our kids are more exposed to it, and that’s the idea.
“The way we saw it, doing this for our kids was the best way. The way things are with the market, they’d need a $100,000 deposit just to get something when they’re older. That’s a lot of McDonald’s shifts if you wanted to do it early.”
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