23 YEAR OLD USES TINY DEPOSIT TO TARGET $150,000 IN PROFIT ON FIRST HOME
23 year old Ozkan, is a local Sydney boy with a passion for cars – and now also property.
Strangely, until recently property was not something he ever showed much interest in. “The costs of stamp duty, deposits etc. just killed my interest in it” says Ozkan.
Living in Sydney made him think home ownership was out of reach. “The costs of property here is so high. Prices seemed to rise quicker than I could save for a deposit”.
So, Ozkan focused on the little things that made him happy instead “I spent my money on cars, games, food and clubbing. Looking back I probably spent $100,000 over 5 years on little things.
Somehow, I basically wasted a really good deposit!”
Even still, Ozkan didn’t see the potential to put his money to work for him. It’s only when his girlfriend got into property that he realized the opportunities in front of him.
“Seeing someone else do it by thinking out of the box got me thinking about how I can do it too. I was getting sick of working hard, and having nothing of real value to show for it”.
Ozkan decided to get help from Binvested, the same buyer’s agency that helped his girlfriend buy a property.
“Binvested showed me how to get the most for my money. They found a way to get me in the market quicker, with less cash up front”.
GETTING ON THE LADDER
At a time when getting on the bottom rungs of the property ladder typically costs $158,000 upfront, Ozkan was able to get in for just $42,000.
He bought some discounted land in a luxury estate as part of a bulk deal, which cost just $254,000. The land is priced lower than similar parcels in the area, as such, Ozkan expects to withdraw equity very shortly.
He plans to use this equity as a deposit to build his 4 bed home, which will cost him $290,000. The total cost of the final home is expected to be $544,000. He expects to have around $150,000 in equity or profit once the entire project is completed.
This clever approach lets Ozkan get more from a small deposit, and profit from the exercise. This approach is really a game changer for first home buyers.
In addition Ozkan received the $10,000 first home buyer’s grant and new stamp duty exemption laws. This benefited him by a further $18,000.
DELAYING GRATIFICATION TO GET BIG REWARDS
However it didn’t happen overnight, Ozkan did need to make some changes.
“Now it’s about heads down, work hard and be smart with my money. I barely eat out anymore and I’m trading in my car for something cheaper. Once the house is finished, I will be driving 1 .5 hours to work but it’s more than worth it for everything I am getting in return”.
It’s a bold move to make at a time when most of his peers are crying foul at property prices, and holding their breath for the market to fall.
Ozkan says, “No one can help you but yourself. Don’t trust the government to fix your problems. You need to work with the system you find yourself in. I used to think Sydney prices were crazy, but now I understand the market. I can see it will only get worse for those who don’t get a foot in now. Go find opportunities, they are out there”.
WHERE CAN YOU TURN FOR HELP?
Some may say that getting into property is easier said than done, especially as a young person with little knowledge about finance, property and law.
However, you don’t need to do it alone. Help is available from the Binvested team. Get in touch with us today to talk about your situation and goals.
If you know where you want to be, then we are here to help you fill in the gaps needed to get there.
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