Tattooed Realtor Reveals How to Survive a Real Estate Crash

Adam Flynn, 41, has been in the property game since he was 18 – but this is the first time he’s really worried about the ‘bursting housing bubble’

Australia’s most tattooed estate agent and self-proclaimed multi-millionaire says the housing bubble will burst soon after interest rates start to rise – and has revealed his tips for surviving the stock market crash.

Adam Flynn, 41, who was expelled from school at 16 and says it “never suited him anyway”, refused to let his lack of formal education rob him of a financially secure future.

He’s been in the real estate game since he was 18 – but this is the first time he’s worried about the country’s property bubble bursting.

Mr Flynn said he remained quietly confident about the Australian property market even during the global instability following the September 11 attacks in 2001 and the global financial crisis in 2007.

But now the single dad, who has a $7 million property portfolio, is anxious.

He thinks the continued low interest rates of ‘cheap money’ have left Australian homeowners seriously overstretched.

“This is the first time I think the market is in trouble,” Flynn said.

The single father is known to be the most tattooed real estate agent in the country

The single father is known to be the most tattooed real estate agent in the country

Mr Flynn left school at 16 deciding it wasn't the right choice for him, but that didn't stop him creating his fortune

Mr Flynn left school at 16 deciding it wasn’t the right choice for him, but that didn’t stop him creating his fortune

“I don’t want to be apocalyptic about this, but I think there’s a bigger issue with serviceability (people’s ability to repay their loan) than which people put weight on.”

He said people looking to buy should wait for now and keep treading water until interest rates rise and the impact is fully understood.

“The average loan is $750,000, if interest rates go up even 1% it will cost families an additional $750 a month,” Flynn said.

“For a lot of families, it’s $750, which is just interest, not even principal, and that’s the money they rely on to survive.”

The property expert, who oversees Coronis Property Management’s operations in Victoria, describes his job as “being on the coal front”.

What are Adam’s top five tips for surviving the next 24 months?

1 – Consider fixing interest rates if you plan to hold your property for the long term

2 – If you want to sell in the next two years, do it now

3 – Determine your service capacity – so if interest rates go up, you can pay the mortgage

4 – If you are looking for a good investment then avoid standard apartments

5 – If the investment is long term, remember that markets change, but history shows 10% growth per year for homes in Australia

He said he had “real-time data on how many people are stretching.”

“Some pundits believe the bubble will burst 12 months after the interest rate hike, but my view is that it will happen much faster than that,” he said.

“I think we will see the effect of interest rate hikes after three months.”

He suggests people who are thinking of selling their properties in the next couple of years should do so now – before the market becomes saturated.

“The market will be flooded with properties as those who have become overextended realize that they cannot pay their mortgages with every increase,” he said.

“It will lead to oversupply and the only way for estate agents to compete is to lower prices.”

But if landlords want to keep their properties for the long term, there are also things they can do to protect their interests.

Flynn suggests switching to fixed-rate interest plans, which will limit the amount of repayments each time the Reserve Bank changes rates.

“Interest rates aren’t going to come down, so it’s a smart financial move unless you plan to sell quickly because then you’ll incur penalties.”

Mr Flynn describes himself as a ‘serial entrepreneur’ and believes making money is more important than earning a good salary.

The property expert, who oversees Coronis Property Management's operations in Victoria, describes his work as

The property expert, who oversees Coronis Property Management’s operations in Victoria, describes his job as “being on the coals”.

Mr. Flynn describes himself as a

Mr Flynn describes himself as a ‘serial entrepreneur’ and believes making money is more important than earning a good salary.

What did the Reserve Bank of Australia say about interest rates?

Interest rates will rise next year to counter rising inflation, which will make it harder for Australians looking to pay off their mortgages, Reserve Bank of Australia Governor Philip Lowe said.

Dr Lowe spoke to the National Press Club on Wednesday, a day after the first RBA board meeting of the year when he left the cash rate at a record low of 0.1% and said ended its $350 billion bond-buying program.

He called on Australians to build up financial “buffers” to help them weather any future interest rate hikes.

“Interest rates will go up…I can’t tell you when, but they will,” he said.

“We have to be prepared for that and people have to have tampons.”

He said the bank would wait to see how Covid-induced supply chain issues affect prices over the next year before deciding whether to raise interest rates.

“We expect this evidence to emerge over time, but it is unlikely to do so quickly,” Dr Lowe said.

“The board is prepared to be patient as it monitors developments in the various factors affecting inflation in Australia.”

Source: Daily Mail Australia

At the age of 20, he bought his first property – a wooden house in regional Victoria – and built three units on the site.

He has since purchased and developed 50 properties.

He is currently building his dream beach house on the Mornington Peninsula.

The $6 million property with swimming pool and tennis court will be his private residence but is also an investment.

“The Australian property market has a history of growing at 10% per year,” he said.

He is currently building his biggest investment ever - a $6 million family home for himself and his son

He is currently building his biggest investment ever – a $6 million family home for himself and his son

“The market goes up and down, but in the long run the number stays the same.”

So, his $6 million house will “make” him $600,000 in the first year.

He plans to keep it for the next 10-15 years and thinks it will be worth at least $12 million when he sells it.