The rising cost of Australian house prices is making it more difficult for first home buyers to crack into the market, but one young teacher has managed to do so with a $40,000 deposit.
Olivia Fitzpatrick purchased a two-bedroom property in Melbourne by herself at the age of 25 for $400,000 in 2019.
Olivia, now 28, told FEMAIL she started saving for a deposit in 2017 when she began working full time.
‘I managed to save by putting away as much of my income as possible, which was difficult as I was living in a share house paying $230 per week in rent,’ she said.
Since then, she has renovated sections of the quaint inner-west unit to boost the value of the home.
Scroll down for video
Olivia Fitzpatrick (pictured) purchased her two-bedroom property in Melbourne by herself at the age of 25 for $400,000 in 2019.
Olivia, now 28, told FEMAIL she started saving for a home deposit in 2017 when she started working full time
After purchasing the quaint home, she spent $20K renovating it to boost the value – which is now calculated over $530,000
The property is just 9km from the Melbourne CBD and close to trendy suburbs – an ideal location many strive to live in.
‘I made saving for a house deposit my only financial goal at the time, so I was focused and all of my spare money went there,’ she said.
She honed in on frugal spending habits and carefully tracked where she was spending her money.
After she had the funds for the deposit, the process of looking for the perfect home itself took two to three years with assistance from real estate agents.
Olivia said she started researching well before she began attending auctions and open houses to get a feel for what she wanted and could afford.
‘When I purchased the property, it was a complete dump – this is how I managed to secure a great property for a great price,’ Olivia said.
‘I have renovated most things in the property from the floors in every room to a brand-new kitchen.’
She added there’s still ‘more work to be done’, including a full bathroom and garden renovation.
‘When I purchased the property, it was a complete dump. This is how I managed to secure a great property for a great price,’ Olivia said (pictured, kitchen area before and after)
Already the $20K home renovation has boosted the value of the property up to $530,000
Already the $20,000 home renovation has boosted the value of the property up to $530,000.
Olivia purchased the home with hope for it to one day become an investment property, but she’s living in it for now.
‘I love my property and would love to do another property renovation in the future with my partner. For now, I am focused on investing in the stock market,’ she said.
Each week Olivia hosts The Motivated Millennial Podcast where she talks about finance, money, budgeting, building wealth and investing.
TIPS FOR BUYERS WHEN INSPECTING PROPERTIES
Always check the heating and cooling systems the property has and whether this needs updating
Ask the agent if they have a floor plan of the property
Ask for a copy of the vendor’s statement, which will include rates
Take a quick glance at the ceiling and make sure there’s no water marks
Check what appliances there are in the kitchen, such as dishwasher and gas stove
If possible, inspect the property when it’s raining to see if there’s any leaks
Olivia’s assets include her property valued at $530K, $75,000 worth of shares and super, $1,000 in cryptocurrency and $10,000 in cash, while her liabilities include her $350K mortgage and $10,00 HECS debt
On TikTok she also shares her investing tips and detailed her net worth breakdown of $250,000.
Olivia’s assets include her property valued at $530K, $75,000 worth of shares and super, $1,000 in cryptocurrency and $10,000 in cash.
Her liabilities include her $350K mortgage and $10,00 HECS debt, leaving her with a net worth of $250,000 – after the debt is subtracted from the assets.
She gained the net worth after working for six years as a teacher, saving her money and tracking her expenses.
Prior to investing, it’s important to do your research and consider your personal values to make smart investment decisions.
Olivia’s three money-saving tips:
1. Have a budget in place and stick to it. Be realistic and allow yourself some money to splurge.
2. Automate anything you can when it comes to saving or investing
3. Try to save on your continuous expenses where you can, these are the things that will make the most difference (such as insurances or home interest rates)
Teacher Olivia Fitzpatrick shares how she bought a $400K house by herself in Melbourne at 25 appeared first on maserietv.com.