ST : 92 properties to his name

Jul 25, 2010

me & my money

92 properties to his name

MD of real estate company relishes fire sales

By Lorna Tan

Managing director of real estate firm Austpac International David Yuen bought his first property in Brisbane, Australia, when he was just 23 in 1980.

Now, at 53 years old, he owns 92 properties in Asia, Australia and New Zealand. Together, they are worth a cool A$100 million (S$121 million) and their total monthly rental is A$300,000.

Mr Yuen is drawn to fire sales and those properties that require an initial low downpayment.

Besides properties, he is invested in shares, unit trusts and his firm Austpac. The latter was previously known as PRD Austpac.

Hong Kong-born Mr Yuen emigrated to Brisbane with his family when he was 12, after which he left for London to pursue his studies till he was 21. In 1978, he obtained a degree in mathematics and statistics from the former North London Polytechnic, now North London University. After his return to Australia, he set up a floor-covering business and owned a French restaurant, until 1986 when he joined a real estate firm Ray White Realty till 1989.

In 1989, he joined PRD Realty and, with initial capital of A$200,000, he set up a franchisee PRD Austwide - later known as PRD Austpac - in Hong Kong to market Australian real estate to Asia. Three years later, he opened an office in Singapore with a partner. In 2005, after PRD Realty was sold to Canada-listed Colliers, PRD Austpac changed its name to Austpac International. It handles 1,000 property transactions a year and its annual turnover is between A$350 million and A$400 million.

Mr Yuen is married to Hong Kong-born Heidi Ng, 41, and they have a son, James Lawrence, 10.

Q: Are you a spender or saver?

It depends on which stage of my life I'm at. When I was a university student holding vacation jobs, I was a saver, saving to pay for living expenses. Now, my income is much more than what my wife and I can spend every month. So we buy more properties.

Q: How much do you charge to your credit cards every month?

I charge about $20,000 to my Amex Centurion card every month and it's paid off duly. So far, I've accumulated 10 million reward points on that card. I withdraw $3,000 when I visit the ATM each week.

Q: What financial planning have you done for yourself?

My personal property portfolio comprises 92 properties, of which 26 are in Singapore, Hong Kong, Kuala Lumpur and Jakarta, worth over A$50 million, and another 66 in Australia and New Zealand, worth about A$40 million. They are mainly residential properties and some offices. About 30 of the 92 properties are under mortgage.

I have A$3 million invested in shares of some firms such as home-grown health-care firm Sourcelink Holding, HK-listed HSBC and Sun Hung Kai Properties. I also have another US$300,000 (S$412,000) in unit trusts. I am a shareholder of a few firms that hold properties and manage hotels.

Q: Moneywise, what were your growing-up years like?

I'm the oldest of three sons. My parents were accountants so they counted every cent. We lived in a 600 sq ft apartment in Kowloon next to Kai Tak Airport which my father bought for HK$5,000.

When I was eight, we moved to a 1,200 sq ft apartment in Kowloon Tong. Three years later, we emigrated to Brisbane where my parents started a Chinese restaurant.

When I was 13, I left for London to study. During my university days in North London, I held a few jobs including working at Kentucky Fried Chicken and in factories, and teaching wushu (martial arts), performing in wushu shows in England, Germany and South America.

Q: How did you get interested in investing?

I knew property prices would always go up, from observing my father who bought and sold properties in Hong Kong.

In 1967, he bought a shop in Tsim Sha Tsui for HK$50,000 and sold it in 1982 for HK$2 million. Today, it would be worth HK$100 million. He bought the Kowloon Tong apartment for HK$110,000 and sold it three years later for HK$360,000 when we emigrated.

I bought my first property in 1980 with A$30,000 when I got married, two years after I returned to Brisbane. It was a single-storey 2,300 sq ft house with a swimming pool, with a land size of 9,000 sq ft.

Back then, Australians received a home ownership grant of A$2,500 for their first home. Banks were allowed to finance 90 per cent of the purchase price, so my initial downpayment was just A$500. I gave the property to my ex-wife when we got divorced a year later.

Q: What property do you own in Singapore?

I bought four units of 780 sq ft each in Newton during the Sars epidemic in 2003. They cost about $650,000 to $680,000 each. I'm renting them out at $5,000 each. Together, they are worth about $5.6 million today.

I prefer small units of below 1,000 sq ft for rental as they offer more value than bigger units and are easier to rent out. The rent is usually the same whether it is a 1,000 sq ft two-bedroom unit or an 800 sq two-bedroom unit.

In 1997, I bought a 2,000 sq ft condo in Novena for $800,000. It is now worth $2.1 million.

Q: What's the most extravagant thing you have bought?

It was a $60,000 Cartier watch that I bought for my wife in 1998.

Q: What's your retirement plan?

At present, I work only eight months a year. From December, I take a four-month break in Hong Kong and Australia every year. That's when I participate in outdoor events like a 50km cross-country run, the Ironman and other triathlons.

I expect to semi-retire in my golden years. Ideally, I will work for only six months every year so I can stay in touch with the market.

Q: Home is now...

My condo at Novena.

Q: I drive...

Three cars. They are a blue Jaguar XJ, a black Jaguar XF and a silver Mini Cooper. My wife is chauffered in a seven-seater Nissan Elgrand.

lorna@sph.com.sg


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WORST AND BEST BETS

Q: What has been your worst investment to date?

I parked several millions with private bankers who invested them in financial instruments in 2002. I made money in the first six years but the portfolio of $10 million was wiped out during the 2008 financial crash. The financial instruments, such as structured products, had become more complicated, and it was a grey area between me not finding out enough and the bankers not telling me enough.

Q: And your best?

In 2007, I made a NZ$100,000 downpayment to buy 20 units of a development in Queenstown, New Zealand. The total sale price was NZ$4 million. I made NZ$1.6 million when I sold the 20 units for NZ$5.6 million after two years, before construction was completed. No progressive payments were required, so my investment was just NZ$100,000