From luxury to baked beans and back again: One investor’s rollercoaster ride
Nichole Lewis, CEO of The Property Lifestyle, rebuilt her finances to achieve less than $20 million in equity after losing her home and assets during the 2008 Global Financial Crisis. Lewis transitioned from earning AU$180,000 a year in international property sales to selling horse manure for $2 a bag before establishing her current portfolio and authorship.
Lewis owned 12 properties in New Zealand and eight others under construction in Australia before her financial collapse. According to Lewis, nearly all these assets were “negatively geared,” meaning the rental income failed to cover mortgages, rates, insurance, maintenance, and management fees.
How did Nichole Lewis lose her property portfolio?
The collapse began in 2008 when Lewis’s accountant notified her that a mortgage payment had bounced. Her employer stopped payments until signed sales became final, leaving her unable to service her debts or reimburse $120,000 in personal credit card expenses.
Lewis stated that her vulnerability stemmed from banking on her salary to top up mortgage payments. This instability worsened when her husband, Kelvin, lost his corporate role at Vodafone during a restructure and later took a job at Spark with a $60,000 annual pay cut.
The couple sold all their houses, some through mortgagee sales, and lost their family home. Lewis reported that a job offer from BNZ was rescinded after a credit check revealed three defaults, leaving her feeling “unemployable.”
How did Lewis rebuild her wealth?
Recovery began with small-scale income and a shift in strategy. Lewis started by finding a grazer to share her paddock, which she stated earned her $5,800 a year. She then began executing “contemporaneous deals” that required no initial capital.
By 2013, Lewis’s financial situation turned around. She currently owns eight properties and works 10 hours a week as a mentor and author of Property Quadrants and No Money Deals.
Lewis now employs a “sleep-on-it” policy for luxury purchases, such as Jimmy Choo heels and Louis Vuitton flats, to avoid the impulsive spending that characterized her earlier life. She noted that while she still spends on high-end dining and fashion, she focuses on reducing debt to avoid exposure if the global economy fluctuates again.
What happens next for the property investor?
Lewis has stated she does not plan to buy more properties beyond her current eight. A possible next step for her portfolio is a continued reduction of debt to further insulate her assets from market volatility.
She may continue to expand her reach as a mentor and author, focusing on teaching others how to avoid “bad debt.” Her current focus remains on maintaining a lifestyle that balances luxury with financial caution.
Frequently Asked Questions
What is negatively geared property?
According to Nichole Lewis, a property is negatively geared when the rental income cannot cover the mortgage, rates, insurance, maintenance, and property management fees, requiring the owner to pay the difference.
How much equity does Nichole Lewis currently hold?
Lewis stated that she and her husband have less than $20 million in equity.
What was Lewis’s income before the 2008 crisis?
Lewis earned AU$180,000 a year doing international sales for an Australian property developer.
Do you believe a “sleep-on-it” policy is the most effective way to manage luxury spending?