R
ich Harvey, a former Aussie economist turned successful property investor and top real estate buyer's agent in Sydney, has shared his cautionary tale of losing 12 investment properties due to a series of unfortunate events.

    In the late 1990s, Harvey was recommended by a financial planner to invest in projects initiated by a developer he knew. The couple had already achieved some success with their investment portfolio, targeting units in emerging growth spots around inner Sydney. They were eager to try something that promised better returns and decided to mortgage their home and put in hundreds of thousands of dollars.

    Things took a turn for the worse when it became clear that the projects were stalling, and Harvey discovered that the developer had misappropriated funds and spent them on his lifestyle. The developer was eventually charged with fraud, and all the developments had to be sold.

    Harvey tried to salvage some of his losses by buying one of the incomplete sites, but this decision ultimately led to a $750,000 loss when funding pulled out at the last minute. This triggered a chain reaction that forced him to sell almost everything he had previously bought, resulting in 12 lost properties.

    The experience left Harvey spiraling into depression, but he eventually bounced back and rebuilt his property portfolio using strategies such as targeting properties with granny flats and dual income properties. He attributes some of his later successes to learning from his mistakes and understanding the importance of trusting his gut when something seems wrong.

    Harvey now advises others to avoid buying off-the-plan for investment purposes, to deal with reputable people, and not to put too much of their net worth into a single investment. He emphasizes that property investment is not rocket science but requires a combination of art and science to succeed.