I wish I’d bought a house sooner
These are the exact words of someone you’d never expect to say this…”I wish I’d bought a house sooner”.
A very successful business owner, Nathan, said that he put off buying a home because he was scared of having a mortgage and the ongoing commitment that was associated with it. In retrospect, he wishes he’d asked more questions and looked into how mortgages and home ownership really work much sooner. He would have been much further ahead in his property journey and building wealth - this is one of his big regrets in life, and it could have been avoided!
The house he did eventually buy was purchased sight unseen, using a friend to bid at auction. He didn’t realize that it was in such bad condition – basically it was previously owned by a chain smoker - it was hard to walk inside the smell was so awful.
The ceilings needed to be replaced because of the built-up smoke, the house was essentially gutted. It was a big job, but now the 3-bedroom, 1-bathroom house is a modern, open-plan house with a new kitchen featuring a big island bench, new flooring and blinds, fresh paintwork and a new bathroom. There is potential to create an ensuite, which is the next project along with the exterior and landscaping.
The great news is that Nathan’s house has increased in value significantly over the last few years from approximately $585,000 to over $850,000, with a significant uplift through the pandemic and now that it’s been renovated. In addition, after owning the home for approximately three years the mortgage is well under control and it’s a comfortable home with a good-sized yard for Nathan, Jess, and their two golden retrievers.
The moral of this story is to do some research; find out what it takes to own a property. For example,
How does a mortgage work?
What are the other costs of buying a property?
How much do I need for a deposit?
What will the repayments be?
How do I make sure I buy a property that will increase in value?
There’s a lot to answering these questions, but it’s all very logical when you break it down, and it’s surprising what you might be able to afford, especially with other support programs for first home buyers.
It’s that old saying: “Knowledge is power. Information is independence. Education is the premise of progress, in every society, in every family.”-Kofi Annan
Those who ask questions and do their research will be in a better position than those that don’t. It’s about making informed decisions that might positively affect the trajectory of your life.
The hard part is - how do you learn about all this property and finance stuff? For many people, it’s through trial and error – not always a great strategy and can have some negative impacts. That’s why I’ve developed this course, to demystify this process and to help first home buyers make smart decisions that benefit them long-term.
If you’d like to learn more, see my web-site: www.lifelaunchpad.com.au for more blogs and the course “Buying a home”.
