Case study: Ben Everingham
4 years ago I worked up the courage to buy my first property.
My friends and I spent months looking for the right property, submitting offers and having them rejected.
When the right property came up we jumped at the chance and submitted our offer. Two weeks later we owned a two-bedroom unit on the south side of Sydney, in a suburb called Miranda.
The unit was nothing special, in fact it was the opposite of special.
Saying this it did have distant city and water views and it seemed cheaper than everything else on the market in the area at the time. The other benefit of this property was that it was within 10km of the homes we grew up in giving us a sense of security.
4 years on and having just sold this unit for a $70,000 profit its easy to see things clearer.
This story is important because this experience is similar to the way that 95% of first homebuyers get into the property market.
Buy in an area we feel comfortable with
Don’t think we can negotiate on price
Buy with a friend or family member
Rush into the market
Listen to the advice of our family and friends
Get emotionally involved
Buy without a plan
If I could sit down with my past self, knowing what I know now, I would walk through some of the following tips for first homebuyers I’ve picked up over the last 4 years:
Go and talk to a number of property investors.
Learn from their experience, their successes and failures.
Buy your first investment property on your own.
I know it can be expensive to get into the property market and it can feel safer to buy with our family and friends.
This said the longer-term benefits of increased serviceability, capital gains and control far outweigh the 6 -12 months it will take you to save the extra deposit.
Build a team of advisors