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So You Want To Start At The Top!

So You Want To Start At The Top!: March 03, 2014


Yes, it would be lovely if we could break open our piggy bank and have enough deposit for our ideal property but let’s face it, for the unbridled vast majority of us that is a privileged position and certainly not a given. So my comment is this: instead of dreaming of the ‘what if’, instead of giving into a defeatist, ‘I’ll never be able to own my own house’, instead of saving frantically for that deposit that will take you 6 years or more to accumulate, GET SMART!!!

When I was starting my property hunt in the days of phenomenonally high interest rates, I was after a trendy area that would suit my cafelatte needs. After some demoralising research I realised that what I could afford would not get me to where I wanted to go. The stark realisation didn’t put me off, however, it simply forced me to rejig my goals to include a few extra steps that would prove fundamental to achieving my ultimate objective.

I determined I needed to live with my Mum and Dad who were actually delighted…it’s an Italian thing! I did that for a while longer and then, together with my sister, we co-bought an investment property at Lakes Entrance, Victoria. It was a cheap weatherboard, with all the right attributes…location, location, location. We knew it would take awhile to see some decent growth but while we were waiting, my piggy bank was transformed into a three bedroom beach house. It meant that both my sister and I could invest any extra cash in our investment and our tenants would kindly help us to accumulate wealth by way of equity – a stepping stone ever closer to attaining the ultimate goal of buying my inner city maison.

After three years we were able to sell and I had enough deposit to buy my one bedroom flat in Port Melbourne which I still have today.

That first property cost us a couple of thousand in deposit. When we sold it a few years later, we each had our own deposit that we could use for a property that would attain high yield and great capital growth and if we wanted to, live in it and enjoy a great lifestyle.

So the moral of the story is:
• don’t give into negativity; you can afford to buy your own chunk of real estate you just need a plan
• extend your timeline to include some smaller stepping stones then set your sights on bigger projects
• consider starting your journey with a co-buying partner to really give yourself a super boost into the property market

Don’t give up because of the constant media barrage that tells us how first home buyers have no hope of buying and will be renting the rest of their lives. Don’t listen to naysayers who will put you off co-buying because all they can see are the worst case scenarios. Get smart and invest in a co-buyers contract to cover yourself and your partner so your partnership can succeed and prosper.

Partnering up with a Co-buyer will fast track your house buying ambitions. It can give your some serious leverage and take half of the burden away from mortgage repayments and costs associated with owning your own home. Give it careful consideration but don’t deliberate too long and give away opportunities to set yourself up for a secure future.


        My first co-buying experience. Lakes Entrance 1986