In this episode, Raj shares the challenges he went through adapting to life in Australia, and how they only added to his resilience and drive to succeed. We’ll hear about the first property he scrambled to purchase and what he needed to give up to do so. While it was something the average university student may not be able to give up, Raj’s past experiences meant he would have done it 10 times over to thank his parents for all they sacrificed. While it certainly wasn’t an easy journey, it led him to reap the many rewards he enjoys today.

Timestamps:
01:47 | From Sri Lanka to Sydney
04:43 | Cultural Challenges
08:07 | They Set Their Sights on Sydney
12:50 | Good Weather, Great People
15:14 | Learning Two New Languages in One
20:09 | New Ways of Thinking
23:52 | ‘We Should Buy Something’
27:43 | Scrambling Up Savings

Resources and Links:

[00:21:58] I was inspired by a lot of the some of the guys' stories that they presented. So I used to read a lot of magazines, especially property magazines and articles. It was something that I was never taught about or told about, that there's another side of this world for me.

 

This is Property Investory where we talk to successful property investors to find out more about their stories, mindset and strategies.

 

I’m Tyrone Shum and in this episode we’re speaking with Siva Raj, property advisor at Mantra Wealth. After fleeing his war-torn country in the early ‘90s with nothing more than his arms could carry, he sacrificed all he could to buy his first property fewer than 10 years later. He now uses that experience as motivation in every step of his inspiring journey. 

 

 

Tyrone Shum:   

Raj started as an investor at a young age. Born and bred in a small town in Sri Lanka, he came to Sydney with his family in the early ‘90s to search for a better life. They certainly found it— although he was far from a seasoned investor at the time, Raj bought his first property while he was at university. The life he leads now revolves around property, however with many years of experience behind him.

Siva Raj:   

[00:01:47] Currently, I do investment for myself and others. Also, I do development for myself, and with my partners in a bigger projects. Now, typically, I'll look at the market, I actually love property market. So, in a typical day, I would look into property market, look at property opportunities out there. There is lot of opportunities out there. If you have the eye for it, you will find a lot of opportunities. Some of them not be financially feasible. But to weeding out those opportunities is probably one of the key things that are allowed doing and I'm making that deal work. Making the opportunity work, and put into putting together different professionals, different authorities, like councils and state governments and putting together this deal. It's like you're putting a seed and the seed grows, it's a quite exciting process. So I love getting opportunity and then built on that opportunity.

[00:03:44] We migrated to Sydney in the early '90s. It's a while ago! We left our home in a war-torn country. Pretty much we came here with whatever we could carry. And I left a lot of family, friends, and moved to Sydney. I grew up in Sydney, it is a great place for kids to grow up. Mainly in that Hornsby area.

[00:04:43] When I moved here, the first time I was like, 'Whoa'. I was amazed. A lot of technology, a lot of different things happening, even in the '90s. So it was quite a challenge in terms of cultural challenge. You got your language barriers, I didn't have much English, didn't speak much English at that time. Going to school in that scenario, it's quite challenging. But everything makes a person, right? Your childhood, your journey that makes a person stronger, and you're open for new ideas and new challenges.

Tyrone Shum:   

His childhood in Sri Lanka was very different to the new life he adjusted to in Australia, but something about Australians’ attitudes felt like home.

Siva Raj:   

[00:05:37] I actually just started high school, actually, in Sri Lanka when I left home. It's not a typical childhood, I guess in western countries where there's peace and it's always been very challenging getting to school or getting to doing something that you like. It's a wonderful place. But just that I wish circumstances were different. 

[00:06:45] I have a lot of memories, but probably the honest thing is coming home from school. When you're young, when you're in primary school, you just want to play. And pretty much every day walking with my grandfather to the beach. The beach [was] close by, beautiful, beautiful sandy beaches. And just life was more relaxed. more. It's laid back, let me put it that way, quite laid back. Even for a kid it's quite laid back. So you just get to do whatever you want. You run around, you know? So it was quite a different lifestyle over there. Just, it's quite laid back. People are friendly, it's amazing.

Tyrone Shum:   

His parents came to Australia mainly due to the Civil War Sri Lanka was experiencing, where the effects were infiltrating his small town.

Siva Raj:   

[00:08:07] So there was no any immediate future for the kids. And if you had the opportunity, you will go to places like some Western countries where there's a lot more opportunities for the parents and children that [are] growing up. 

[00:08:24] So my parents decided they're going to move to Sydney, with the help of our extended family. So they just decided, 'Okay, look, you've got to stop school, we've got to start again, somewhere else.' That was the thing. And it was actually a struggle to get here. And yet alone. You have a financial uncertainty when you come to a different country. When your culture is different. Your language is a barrier, and you don't have any experience. So it was quite a challenge, but I'm here.

[00:10:15] It's quite a challenge when I said it. I can go into details, but let me put it this way. The one point of Sri Lanka, where I lived to the capital city is probably only 200 kilometres. But it takes about a day to travel. Some bits and pieces we have to actually walk. And it's quite scary for a kid. It may be for adults, they got used to these things, but for kids is quite scary. Especially walking alone at night. So we got to go to the Capitol. We had friends, extended relatives that actually helped us to find a way to Sydney.

Tyrone Shum:   

None of them knew what to expect at any given moment, or what could be lurking around the corner. Raj counts his family as one of the lucky ones.

Siva Raj:   

[00:11:48] We were quite lucky that none of us... you know, we were safe outside. Not everyone had that same idea. Not everyone's as lucky as I am or my family is. Quite lucky. When I think about it, I actually think that is very lucky, very lucky.

Tyrone Shum:   

When he arrived in Australia in the early ‘90s, our beautiful weather was there to greet him. However, as he found out, not everything was sunshine and roses.

Siva Raj:   

[00:12:50] I just got off the plane. And when our extended family picked us up from the airport. And look, when I got here, I was like, 'Wow, this is amazing.' It's the beautiful weather when we came, it was probably in the spring or early summer. Beautiful weather, very similar to, I guess not similar. But it's not called haggis, because it only hit me after six months, you know how cold it gets. 

[00:13:24] But beautiful weather, people are very friendly. At the time, when we came, there's not not many... where we lived, they don't have many immigrants, or people from other countries. So it was a bit hard. And also, because the language barrier, I actually had to go to a special school to learn English, learn the culture, learn the way that things operated. 

[00:13:56] I actually missed a year of my actual high school as well, because I was learning English. It was quite a journey coming here, culturally, it's quite different. The language was the biggest problem. Because people are generally friendly, but if you can't express your feelings or your needs it's quite hard. And always people take time to get to know you. But if you can't express yourself, it's even making it even harder for them to get to know you. 

 

Coming up after the break, Raj delves into the sacrifices his family made...

 

[00:17:17] He mainly worked in the kitchen or restaurants. It wasn't something that, I guess, professional jobs. So that actually made it even harder.

The things he learnt at university that had nothing to do with his course...

 

[00:20:19] While I was studying, I got to speak to a lot of people in the industry, got to speak to other people. And also my level of English was improving a lot more and then able to branch out a little bit to different ways of thinking.

 

He shares the story of how his first property came about, even after it nearly didn’t.

[00:24:04] At that time I didn't have a great deposit, or didn't have much as a deposit. So we finally found a small unit. And we didn't know anything about the unit. We didn't bother even looking at any strata or any other information. 

And that’s next. I’m Tyrone Shum and you’re listening to Property Investory.

 

Tyrone Shum:   

The wintery weather wasn’t all that surprised him on his arrival in his new home. He found himself baffled by something most Australians never give a second thought to.

Siva Raj:   

[00:15:14] Mostly the way the Australians spoke, because they're quite fast. You're learning and then when you're talking to someone, they will just put three sentences within a couple of seconds. And you're still trying to figure out what they just said! So that was a challenge. Australians speak quite fast. And they have a very slang to it. And at that time word that they use was not in the dictionary, probably! I had never came across some of the words. So language was the biggest issue, but I was a quick learner. And also going to English learning school was really helpful.

Tyrone Shum:   

His father had moved here a year before Raj and his mother and younger sister arrived. Suddenly finding himself learning English alongside his sister, his father wasn’t having the easiest time adjusting, either.

Siva Raj:   

[00:17:45] He worked pretty much odd kind of jobs. He mainly worked in the kitchen or restaurants. It wasn't something that, I guess, professional jobs. So that actually made it even harder. In terms of bringing up a family. It's obviously much harder when you have odd jobs and working around the clock and at night.

[00:17:56] My dad's background is basically a very business background. They didn't pursue a professional career. But unfortunately, because of the situation, they had to leave everything and come to a different country. Especially when they can't really speak the language it was very hard for them to actually get into something, in a professional jobs.

Tyrone Shum:   

After he had English down pat, Raj discovered his challenges were far from over.

Siva Raj:   

[00:19:29] After learning English, I was thrown into the deep end, I guess! Sent to a boys school, high school. That was just extremely challenging, because going to a boys school, it's already challenging, let alone not able to speak much. It was quite challenging. I was thrown into probably three years of schooling at high school here. Once I finished that I was able to get into university. 

[00:20:09] So I did a degree in science, in computing science. So, while I was studying, that's when it all started. While I was studying, I got to speak to a lot of people in the industry, got to speak to other people. And also my level of English was improving a lot more and then able to branch out a little bit to different ways of thinking.

Tyrone Shum:   

He connected with people involved in property investing purely by chance. While navigating this brand new world, he found that his new way of thinking was the catalyst he’d been searching for the whole time.

Siva Raj:   

[00:21:20] You've got to always think about different ideas, and how you can actually leverage those ideas. So from that point onwards, I think that was a key thing. Mind shift was the key thing. 

[00:21:38] After that, I actually actively looked for people in that property industry, people who had been there, done that. The stories, they say, all the stories they publish, it was very, very interesting. And I was inspired by a lot of the some of the guys' stories that they presented. So I used to read a lot of magazines, especially property magazines and articles. It was something that I was never taught about or told about, that there's another side of this world for me.

Tyrone Shum:   

A year into his university studies, he was needed to help out at home. This led him to get a job while he was still studying, which turned out to be just what he needed.

Siva Raj:   

[00:23:52] That was probably one of the best decisions I made. Able to have a reasonably... obviously not a great job, but a reasonably good job where I can start looking at how I can utilise this money, whatever leftover. 

[00:24:15] During the time, all this time we were renting. And one day the owner said that they're going to sell the property. But we didn't have the money to buy that property at that time. So, we had to move within a quick timeframe. So, it was sort of a struggle trying to move and finding a place and then we didn't know how long this is going to last again. So we didn't want to keep moving because we have moved so much in the past so we didn't want to move. 

[00:24:55] But then my dad suggested maybe we should think about buying something. At that time I didn't have a great deposit, or didn't have much as a deposit. So we finally found a small unit. And we didn't know anything about the unit. We didn't bother even looking at any strata or any other information. We just said, 'Okay, fine, we'll buy this.' It's a home, we'll buy this.

[00:25:30] And then we had to come up with the deposit. With that, I actually had to sell my car. So I actually sold my car and used that money from that as a deposit. Look, at that time, I was like thinking, 'What am I doing?' But when I think back now, I think I made the right choices. I started quite early. We didn't have the deposit, but able to manage the deposit. And also the borrowing capacity wasn't there. So I was very lucky to have that job, it was a permanent job, to get into the property. Even though in the olden days, obviously, the property market prices are not the same as now. But it may be different applying that situation now, but quite lucky to get into the first property while I was actually at uni.

Tyrone Shum:   

[00:27:01] Was that a family investment that you're talking about that you purchased as being your family home?

Siva Raj:   

[00:27:06] So because we were renting for so long, I wanted to make sure that whatever I can do to get into property so that my parents and ourselves can live and call itself a home. And then we don't have to have that pressure to move out or find a new place to live. Remember, my parents are getting older. And so I wanted some security for the family to be able to say, 'Okay, fine, we're going to stay here for a long time to come now.'

Tyrone Shum:   

[00:27:39] That's excellent. How much did you say you purchased that unit for, back in the day?

Siva Raj:   

[00:27:43] It around the $200,000 mark. So it was quite a... the prices were quite low. But at that time, getting a loan, not having a high paying job, it was hard. But somehow managed to scramble all my parents' saving [and] my saving into it. But obviously, the investment has done quite well now, as I look back, it's quite an achievement for anyone in the university doing it.

Tyrone Shum:   

[00:28:50] And what I'd love to sort of just understand as well is being that your first investment, how many properties would you say you've also invested or done or developed in the last... period of time since then?

Siva Raj:   

[00:29:05] So since then, I actually took a break to finish off my degree and get into a path where I can generate more income, so that I can keep buying this property. So it took me a while to get to that position. Once I got to the position I bought the second unit because I thought at that time I was able to afford, and then after that point I actually did a lot of research, a lot of reading, going to a lot of seminars. And finding there's a lot of information out there. There's finding the right fit for me. How I can actually leverage. 

[00:29:55] So I surrounded myself with a lot of mortgage brokers and buyers agencies. These people are really great. It's sort of surrounding myself with these people actually meant that they showed me the ways that you can do this. And from that point on what I actually started really heavily investing into houses. Because I've always thought that capital growth was my focus, so at the time I didn't really care about cash flow, but capital growth was my focus. So I heavily invested into properties. In terms of properties and deals, I've done a lot of them in the last 15 years.

Siva Raj’s story continues in the next episode of Property Investory. He shares the details of a project that he was able to revive...

 

[00:02:06] And, thankfully, I was able to find a solution with the help of a number of professionals, and complete that project. So, it was quite a challenging at the time. 

 

How his buy and hold strategy came about...

 

[00:07:32] I remember going to an auction, and there was only two people, and then the person just stopped. When I wasn't even reached to my mind that I wanted to pay, they just stopped, like, maybe $50,000 lower than what I was going to pay. 

He divulges a crucial part of his mindset that has stuck with him this whole time.

[00:11:40]  I was actually doing a small development and realised that all this hard work that you're putting in, you're getting involved a lot of the professionals to help you. 

 

And that’s next time on Property Investory.