Peter Icklow is a profoundly intelligent, articulate, polite and friendly gentleman. One of admirable values and many talents. He is also Founder and Director of multi-million-dollar empire Monarch Investments, one of Australia’s largest and most successful private land developers..
But what does he have in common with the world-famous musical composer Vivaldi?
Vivaldi was one of the most productive musical composers of his time. He produced around 500 concertos and was a true master of the musical score; this being the sheet of music that shows how all the parts of an orchestra play together harmoniously.
Peter Icklow’s ‘modus operandi' is no different. He has developed and built more than 4,000 house and land properties, in addition to a range of commercial projects, and in this interview he likens navigating the property cycle to being a musical conductor.
“Every day I re-evaluate how everything is working in my business, and how the economic environment is affecting cashflow. I’m the conductor and I need to make sure these instruments all play in time and in tune, because if they don’t, and interest rates go up, or there's a recession, I need to get them back in tune or find another player to keep the music going”
This has led Peter to building a multi-million-dollar empire that has successfully ridden the highs and lows of the economic world.
He shares the wisdom and insights from his new book, talks about using ‘other people’s money’, building free accommodation for women’s refuge, and earning wealth rather than receiving it. He also reveals practical tips on how to navigate the ‘property clock’, and how to prepare and manage it to create a perfectly orchestrated symphony.
Born in 1947, Peter and his family migrated to Sydney, Australia on a ship called the Dominion Monarch, after several years in South Africa. Upon arrival his father borrowed some money to purchase 5 acres of land and was recommended by a solicitor to subdivide it, this being the spark that led Peter to pursue his path in property.
“My father was my mentor. I would follow him around; see how he did business and how he spoke to people. That can’t be taught through explanation, one must experience it to understand it. He always did the right thing by people so I took that on board and then went my own way.”
When Peter left school at 16, he became the youngest licensed, real estate agent in New South Wales. Although he had a number of jobs with other companies, he was determined to build his own and that was the fuel that grew Monarch from the small home-run business of his father, into what it is today.
“Property was infused in me. I always wanted to work for myself and use my ambitions however, it’s not all about the money, it's about building something and succeeding. I'll give it away to charity, I don’t care.”
And that is exactly what Icklow is doing. At present, he is currently looking to build studio apartments that can be used rent free for a women’s refuge.
“I feel very strongly about this. I have two daughters and four granddaughters, and although we fortunately haven’t experienced this firsthand, I am extremely conscious of the issues in society with domestic violence. It horrifies me that some people can’t afford to leave and eventually when they do, they live on the street.”
“I'm now 75 and have more than what I need, so my philosophy is not to build any more assets as I don't need to. It’s time to give back.”
Peter is also a family man, he works with his 2 daughters and son-in-laws as part of Monarch and enjoys leisure time additionally with his wife, son and 6 grandchildren, all of whom he is dedicated to passing down his knowledge.
“Kids are taught theory, but they're not taught the ‘know-how’ of business. My granddaughter is 16 and she understands it because I work with her on it, and in a few weeks, I will be visiting her school to talk to the year 10 business students. The next generation needs to be taught to earn their own wealth, not just rely on generations prior to hand it to them.”
In Peter’s forthcoming book he covers a chapter on this very topic "Why Wealthy Families Lose or don’t grow their fortunes in 3 Generations”
“Too much money given is not a good thing, especially if it hasn’t been earned. The first generation, like my parents, went through the war and were determined to give their children a future. Then I, as second generation, saw this and became determined to build on what they worked so hard for. I don't want to see that wasted and have an appreciation for it. But the third generation, although wonderful, don’t have the same understanding of hardship as they’ve never lived it, so haven’t had the need to go into ‘survival’ mode. When interest rates go up, and I’ve lived through interest rates of up to 23%, I will go into survival mode.”
As conversation led to interest rates, Peter Icklow pulls out his scrap book clippings of property news articles and the ‘property clock’ from 1989. His method of understanding and explaining the history of economics was so simple.
“The most effective things are often the simplest,” Peter assures me, launching into his explanation.
“Right now, we’re around 5 o’clock on the property clock. Every five to seven years, it goes around and you get through it by not giving up, managing your cashflow closely, and being prepared to change your tactic according to what is going on in the business world. By understanding the property clock, you can anticipate alot of these events so can prepare for them.
Cash flow. I do daily cash flows and look at worst case scenarios. If there is a potential cashflow problem, I act now, not in 1 or 2 years’ time.
Hedge risk. I always keep risk under control, and that's how you get through it. Manage interest rates and do cash flows on worst case scenarios. If it looks like it’s running thin, I'll sell a property now, because history shows that the cycle will continue and rates will go up and down again.
Use other people’s money. By this, I mean the bank. I don’t pay interest, I use capitalised interest so when I sell the property, I pay the loan and interest back. However importantly there is good debt and bad debt so only good debt please.
I talk about all this in my book…”
Peters outlook on interest rates is that they will cause the property industry to have a challenging 12 months ahead. The only people who are going to sell property are those who must sell. By end of 2023, rates will likely start reducing again however this is when what he refers to as the ‘sheep in the waiting paddock' will all move to the ‘buying paddock’. He on the other hand, moves in the opposite direction; he prepares for this part of the cycle by selling property beforehand if needed, keeping undrawn lines available and if a viable opportunity presents during the lull, purchase it to ride the wave back up.
The 'Property Clock'
A large part of Peter’s success has also flourished because of the following strong values he lives and works by. They are basic and simple, however often lost by most in today’s world.
It can take years to build a reputation and a day to destroy it,[1] so be respectful in your dealings, do the right thing by people and if others don’t align with this, walk away because ‘you can't expect everyone to think like you, and why should they?’[2]
Treat everybody the way you want to be treated because at the end of the day we are all the same, we are all human.
Present well. If you look down and troubled, everyone will think you are. Dress well, talk nicely, stand up straight and look the part. It also makes you feel worthy of attracting good people and good wealth and gives you confidence in what you’re saying and doing.
’Keep family a main priority, guiding and helping them in the best way possible because children were never asked to be born into this world, we bought them into it.
It is not wonder why success has followed Peter Icklow. He has not taken anything for granted but rather picked up the right instruments at the right time to master his symphony, this being a harmonious balance of wealth, integrity, family life and personal satisfaction.
“There is a saying: the harder you work, the luckier you get,”[3] Peter states.
“I am lucky my family migrated to Sydney Australia. I am lucky I had my father as my mentor. I am lucky to have been born with ambition and some innate abilities. However, my successes that have followed are not all luck. They are the result of persistent, daily hard work and having integrity in the way I do it.”
