Eight-year-old boy snaps up $970,000 property at auction
He may only be eight years old but Michael Hamdan could possibly be Sydney’s youngest property investor.
The southwest Sydney resident was the winning bidder at the auction of a cluster of five one-bedroom studios in Greenacre on Saturday, beating out competition from six other registered bidders.
The homes on Juno Pde were snapped up for $970,000 - an amount well over the $800,000 expectation.
Selling agent Mark Saleh of Harcourts-Greenacre said the crowd was astonished after the eight-year-old made his entry.
“I’ve never seen anything like it,” Mr Saleh said. “All the other bidders were a bit shocked.”
According to his property developer dad, Michael took control of most of the auction, placing the opening bid and coming into the sale with a strategy to “slow bidding down”.
“He was enjoying playing monopoly with the bids,” the dad said. “We made it a fun experience.”
Because of his young age, the boy wasn’t able to directly buy the property, but his father purchased the investment properties for him.
His son handed the cheque to the sellers as part of the transaction.
The property developer said he wanted his son to be involved in the purchase of the former housing commission units so he could learn as much as possible about Sydney’s intense property market.
“I’m trying to teach him everything I know,” he said. “I used to get very uncomfortable bidding at auctions, I know what it’s like. I hope this will build up his confidence.”
The father and son plan to renovate the homes and put them up for rent.
“(Michael) will be involved every step of the way … he will make the choices,” said his father, adding that Michael will pick out fittings and fixtures with his guidance.
Auctioneer Rob Trovato of Auction Services said there was quite a bit of competition from fellow bidders, with many of them being investors and developers.
The younger Hamdam stood out, Mr Trovato said. “He attempted some low-ball bids which had to be knocked back, but a lot of people try that … the two of them were having a bit of fun with it.”
ING research showed the average age of Sydney first homebuyers was 38.2, up from 34.7 in 2005.
“The property market is difficult to get into,” the older Hamdan said. “I wanted to train my son up … we saw this as a good investment.”
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