In this episode she shares just how big her leap from her first property to her second was, and looks wisely into both her past and future. In doing so, she acknowledges what should be taught in schools along with her favourite books, and we come full circle as we bump into a familiar buyer’s agent along the way.

Timestamps:
00:18 | Every Moment is a Learning Experience
04:43 | Grateful, Empathetic, and Mindful
08:34 | Sacrifices Pay Off
10:23 | A Big Second Leap
13:37 | The First Step is the Hardest
17:11 | Invest Early, But Don’t Forget Fun
18:56 | Yes, You Can
20:03 | A Sponge With a Grain of Salt

Resources and Links:

Transcript:
Danica Zhan:

[00:08:34] Because I've seen my parents have to work so hard and sacrifice so many things to give me and my brother, the opportunities that we have, I guess I want to come to a point where you have that financial security so that you can go do what you want in life and what you value in life, and so that my parents can finally kick back and relax. 

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 back with Danica Zhan, budding property investor and dentist in the Defence Force. Despite her young age she has a wealth of property investment knowledge and knows how to apply it, owning three times the number of properties most of her peers hold, including one that gained $200,000 in equity in just 18 months!

Tyrone Shum:   

Zhan is the first to admit the reason why she doesn’t have any investment blunders under her belt. With her journey being in its infancy, she simply hasn’t had the time yet! However, her positive but realistic attitude will help her greatly for if and when the time comes.

Danica Zhan:   

[00:00:18] I think because my investing journey so far, [has] only been a brief one, I've been really fortunate in that I haven't had any super devastating moments just yet. And also, I've started off having a really good team around me. Whether it be my mortgage brokers, my lawyers, my builders, my property managers— they've all been incredible at what they do. So I've had a lot of guidance when it comes to buying and managing my properties. So I can't say I have just yet. 

  

[00:00:56] I think the moment that I probably regret... oh, sorry, not regret, because every moment is a learning experience. But it was probably when I initially started and just bought random shares without too much research or understanding to what I was buying. 

  

[00:01:12] There was a little bit of that FOMO element where, like, everybody else is doing this, so this is something that I should be doing as well. And then I think with time and with a bit more maturity, you realise not necessarily do we have to follow other people, but [it's] more just [about] gauging what your needs and what your circumstances are. And then doing your own due diligence and making informed money decisions from there is the best point of call.

Tyrone Shum:   

In a sentiment many share, she expresses what she wishes was taught in schools.

Danica Zhan:   

[00:02:14] When I first started working, I was like, 'I know nothing about taxes or any of this stuff. And I wish school had taught us more of it'. So yeah, I really encourage young people to go out there, but to take everything with a grain of salt. Not necessarily trust, or follow heavily any single thing that they read, but to read a wide range of information. 

[00:03:08] With lots of money things, most times it is through word of mouth. Kiyosaki's Rich Dad, Poor Dad, that was a great read. Jyh introduced me to Michael Yardney. He's written quite a few books on properties. And then I really enjoy just reading in general. So I guess reading broader content. That helps you with mindset in general. Things like The Resilience Project, and Atul Gawande's Being Mortal. The more you can learn, the better equipped you'll be. 

  

[00:03:51] But with the same understanding, that's always one step at a time, and you can't possibly learn everything. And that's okay, it's part of the journey to learn things as you go as well. 

  

[00:04:04] Also just listening to various podcasts. Because I was working— well, I still am working full time— it was very difficult to create time slots where you could just dedicate to expanding your investment knowledge. So I do things that would align with my schedule, whether that be popping on a podcast as I drive to work. So I listen to Property Couch. They were great. It's just little things like that. So you'd pick up like snippets of knowledge from everywhere, and then that would kind of help inform your overall mindset towards investing.

Tyrone Shum:   

[00:04:43] Yeah, that's great. And you mentioned The Resilience Project. I haven't heard about that. Is that a book?

Danica Zhan:   

[00:04:52] It is a book, and it's mainly centred around, I guess... they talk a lot about gratefulness, empathy and mindfulness. Which I think are just important no matter what you do in life. 

  

[00:05:13] I think especially when you're a young investor, lots of people have a tendency to, like, rush into things. And then, especially if they're purchasing something like shares, for example, where there's a lot of fluctuation, and then a lot of people maybe emotionally can find that really difficult to manage. So being able to practice things like mindfulness, awareness, and gratefulness can really help with that.

Tyrone Shum:    

As if not content enough with her dentistry degree, Zhan throws some psychological wisdom into the mix when it comes to sharing her ‘aha’ moment.

Danica Zhan:   

[00:06:59] I think the Dunning Kruger effect probably comes into play here. Whereas as you initially increase your knowledge on the topic, your confidence kind of peaks and you think, 'Oh, I'm the master of this'. But then as you learn more and grow this knowledge, your confidence will drop into this valley of despair, when you realise how little you actually know. 

  

[00:07:22] And then as you continue to learn more, that confidence gradually increases up a little bit more. So I guess through my investing journey, so far, there's been quite a few aha moments. Probably one of the big ones is just understanding that there's no gold standard way to invest. There's no wrong answer. What each person chooses to do depends on their circumstances, their needs, and their desires. 

  

[00:07:54] I think just being flexible with yourself and being kind to yourself and understanding that not everybody needs to go buy 10 properties. Perhaps just two or three properties is enough for you, then that's perfectly fine.

Tyrone Shum:   

While she certainly wants to accelerate her wealth, it’s far from the only reason she’s so passionate about what she does.

Danica Zhan:   

[00:08:34] Because I've seen my parents have to work so hard and sacrifice so many things to give me and my brother, the opportunities that we have, I guess I want to come to a point where you have that financial security so that you can go do what you want in life and what you value in life, and so that my parents can finally kick back and relax. And I can look after them and that's really important to me. So my family, my loved ones, to have the financial security and go do what they want to do in life.

Tyrone Shum:   

While Zhan’s property portfolio isn’t the thickest volume just yet, she recognises that there’s nothing stopping her from growing it in time.

Danica Zhan:   

[00:09:48] As a fresh property investor, I have purchased only the three properties in the last two years. And that's my portfolio at the moment. I need to grow it a little bit further though.

Tyrone Shum:   

Diving into her most recent purchase in Queensland, we bump into a familiar face we come across often on our Property Investory travels.

Danica Zhan:   

[00:10:23] My most recent purchase is a four [bedroom], two [bathroom], two [car spaces] in Kallangur, Queensland. It settled last year in September. So for that purchase, also, because at the time, I was about to deploy for three and a half months, I was going to be at sea with very limited reception and things like that. So I went through a buyer's agent who I think you've recently had on your show, as well, Simon Loo. 

 

[00:11:07] I had told him that I had this really narrow time frame, and it would be really good if we could get this property sorted before I [had to] deploy. And so he was lucky. And he managed to find this amazing property in Queensland. And so we purchased it for around $500,000. 

  

[00:11:27] The evaluation recently came back, I think last month or so, for $700,000. So it grew incredibly over the last half a year or so. And I think that's just probably attributed to a bit of having that support of a buyer's agent and managing to get a deal before it goes on the market. As well as just how hot the Queensland market currently is.

Tyrone Shum:   

With her first purchase being around $250,000 and her latest being double that, her mindset shift is one to be admired.

Danica Zhan:   

[00:12:35] Before you really get into property, I think a lot of people think of my money as more of a finite resource. And it's important to realise that it's really abundant, like, money's being printed all the time. And so just understanding that there is a lot of wealth out there, and everyone has the potential to go and chase after it and get what they want, if they're happy to put in the hard work for it. 

Coming up after the break, she gives some insight to her role in the Defence Force…

Danica Zhan:   

[00:14:37] The Defence Force is quite a large organisation, so health is very important. 

How even though she could fly overseas in the time it takes to get to other parts of our country, she’s glad her eyes have been opened to what Australia has to offer…

[00:18:25] Especially as someone who grew up on the east coast... I guess when I was young, I didn't really imagine much happening in the West. 

She offers her advice as to where you can find knowledge where you may least expect it.

Danica Zhan:   

[00:20:03] It is difficult, unless you know someone who knows someone. 

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

Tyrone Shum:   

Full of advice for those who will come after her, Zhan offers some wise words for young investors and reminds us all of something to keep in mind throughout our journeys.

Danica Zhan:   

[00:13:37] All my properties... I guess I haven't purchased anything really big. They've all been really more affordable properties to get into the market. We touched on this earlier about how difficult it is to save up for that first deposit for the home that you do want to live in. And so I think for young investors purchasing properties that they are able to afford, and then growing wealth from them all forms a pathway where you can get to where you want to go.

Tyrone Shum:   

In addition to her growing property portfolio, she offers her specialised knowledge to one of our country’s largest organisations that’s always on the go.

Danica Zhan:   

[00:14:37] The Defence Force is quite a large organisation, so health is very important. So we've got doctors, nurses, dentists, physiotherapist, psychologist, all the Allied Health [practitioners]. Everyone. We generally have a mixture of uniformed and contractors. And that's how we provide capability.

 

[00:15:24] How it works is just that there's different bases all around Australia, and then every base will have their own medical facility. And then there are a certain number of people attached to that medical facility. And then for deployments and things depending on how many people are going and things like that, you'll have a certain amount of medical support attached to the trip as well.

  

[00:16:01] In general, when you're in the military, everyone posts around and so the postings, where you're based, usually varies from between two to up to five years for a posting. And so it's very typical in Navy for an individual to post every two years to a new environment. 

  

[00:16:21] In many ways, it is a good thing, because it initiates change. You never really get too comfortable and you're always learning and picking up new skills at the next position you're in.

  

[00:16:49] I think at this stage, I'm really enjoying my military career and all the opportunities it's offering me. At this stage. I haven't made too many plans into transitioning out. I'm really, really grateful for the job that I do.

Tyrone Shum:   

[00:17:11] If you met yourself, say 10 years ago, what do you think you would have said to her?

Danica Zhan:   

[00:17:16] I probably would have told Danica to start investing earlier! Because at the time, I was young, and I would just be planning, like, overseas holiday trips and things like that. I would still have my savings. But a lot of it also went to travel. Not that I regret those, because I think travelling opens your worldview and you learn things about yourself and learn things about the world that you wouldn't otherwise have. So those are all fruitful experiences.

Tyrone Shum:   

Zhan acknowledges that her unique position provides certain opportunities she otherwise may not have available to her, travel being one of them.

Danica Zhan:   

[00:18:25] Especially as someone who grew up on the east coast... I guess when I was young, I didn't really imagine much happening in the West. In Western Australia, or in Darwin. Because just flying there, you might as well fly overseas. But when you actually get there, and you realise, 'Oh, Australia has so many gorgeous, beautiful places that are basically almost untouched'. It's just amazing what Australia has. We're really lucky to live in this country.

Tyrone Shum:   

[00:18:56] Absolutely. And what are you most excited about in your property journey, maybe in the next five years?

Danica Zhan:   

[00:19:04] I hope to finish my cumulative phase and just start consolidating, and hopefully be able to maybe purchase my own home in the next five years. And then I guess just reach out and engage more people to also help them grow their wealth story. Because I feel if average first generation Australians like myself and Jyh can do it, definitely anybody else can as well. And just helping people realise that.

Tyrone Shum:   

[00:19:44] What is it that you think would probably be some really valuable wisdom that you can sort of impart to them to help them get started on their journey? Because as we've just discussed, the biggest challenge is knowing who to speak to, where to find any information, and using that as being trustworthy information.

Danica Zhan:   

[00:20:03] It is difficult, unless you know someone who knows someone. But you'd be surprised at how many people around you do have a little bit of knowledge or recommendations that they can give. So definitely reach out to someone who you know has some experience in the field, and you feel like you can have frank conversations with them. 

  

[00:20:25] And then just to go from there. And always stay curious. Read what you can read, watch what you can watch, listen to what you can listen to, and talk to everybody that you can talk to. And then naturally, your knowledge will just grow from there.

Tyrone Shum:   

[00:20:42] So be a sponge.

Danica Zhan:   

[00:20:44] A sponge with a grain of salt.

Tyrone Shum:   

[00:21:05] So how much of your success at the moment is due to your skill, intelligence and hard work? And how much of it is because of luck?

Danica Zhan:   

[00:21:13] I think it's definitely 95% hard team work. Not just my own work, but as a team. And then maybe 5% is finding the right property. Because you have to put the effort into finding the property before the luck comes.

Thank you to Danica Zhan, our guest on this episode of Property Investory.