The Stress of Saving for a Deposit
I still vividly remember the process of buying my first property, which was also my principal residence. It wasn’t an easy journey—it felt like I was constantly chasing a moving target. I worked two jobs just to scrape together enough for a deposit, and every time I went to my mortgage broker, I heard the same thing: “Save another $20k, then come back.” This happened multiple times, and every time I thought I was ready, the broker pushed the goalpost further.
I was trapped in a cycle of saving, sacrificing, and still feeling like I wasn’t making progress. It wasn’t just physically exhausting—it was mentally draining too. The idea of saving such a large amount while also knowing I’d be committing to a mortgage was terrifying. Renting felt so much easier because there was always the option to leave. With a mortgage, I feared being trapped with a financial commitment I couldn’t manage.
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Choosing the Wrong Mortgage Broker
Eventually, after what felt like an eternity of saving, the mortgage broker finally gave me the green light. But this is where one of my biggest mistakes came to light. The broker I was using was introduced to me because of their race. Everyone in my community at the time recommended brokers from the same background, so I followed suit without much thought. It turned out to be one of the worst decisions I could have made.
This mortgage broker pushed me to save for a 20% deposit when I could’ve gotten a loan with just 10% down. I didn’t know any better, so I went along with their advice. By the time I’d saved the extra amount, house prices had skyrocketed. The additional savings I managed to gather during that extra year were wiped out by the rapidly rising market—homes were increasing in value much faster than I could save. That delay cost me so much in terms of buying power.
This was one of the biggest lessons I learned: always choose professionals based on their expertise, not just because they share your background. In this case, race had nothing to do with the broker’s ability, but I didn’t know how important it was to pick someone who was genuinely looking out for my best interests.
The Search Begins: Overwhelmed by Options
Once I had my approval, I jumped into the search with a mix of excitement and apprehension. I knew I didn’t want to max out my loan approval, so I budgeted $50k less than what I could afford. The thought of overstretching myself and being “house poor” terrified me. I wanted to leave room for a comfortable quality of life.
I spent endless hours on realestate.com, looking at properties in areas I could afford. I went to countless open homes, and after each one, I felt more deflated. Each offer I made was rejected. It became clear to me that I had no idea how to value a property properly. I didn’t understand the market, I didn’t know how to formulate offers, and I certainly didn’t know how to negotiate. I was literally throwing numbers at agents, hoping one would stick.
Bidding Against Myself: A Major Mistake
One property stands out in particular. It was the day before my cousin’s bucks party, and I arrived early for an open inspection because I knew I couldn’t make it to the official viewing. I walked through the house, and it immediately felt right. I fell in love with it.
I made an offer right after the open home, thinking I was being smart by waiting until after the official inspection. The agent told me that my offer was exactly what would secure the property, but then they convinced me to bid higher—even though there was no competition! I essentially ended up bidding against myself. At the time, I didn’t realize what was happening, but looking back, I can see how inexperienced I was.
That night, halfway through my cousin’s bucks party, I got the call: my offer had been accepted. But there was a catch—I had to sign the paperwork first thing in the morning. In my excitement, I left the party early, went home, and was waiting outside the agent’s office the next morning, eager to sign. At that moment, it felt like a huge win. In reality, though, it was a massive lesson in what *not* to do.
Skipping Due Diligence: Costly Mistakes
Once the excitement faded, the reality set in. The amount of due diligence I failed to do was staggering. I had overpaid by $50k, signed a contract without any legal review, and didn’t even know that I should’ve done a pre-settlement inspection.
After moving in, I quickly started discovering all the cheap repairs and shortcuts the previous owners had made just to sell the house. What I thought were sleek, modern splashbacks in the bathroom were actually cheap plastic covers stuck over old tiles. The kitchen was barely holding together, and all the fittings seemed to break one by one. It was disheartening, to say the least.
Why Didn’t I Get Help?
Looking back, I can’t help but ask myself why I didn’t seek help. At the time, I didn’t even know what a buyer’s agent was, and even if I did, I probably would’ve been too stubborn to hire one. Like many people, I assumed I could do it myself. Plus, I was focused on saving money, and I thought hiring a buyer’s agent would just add unnecessary costs.
But in hindsight, paying for a buyer’s agent would’ve been one of the smartest decisions I could have made. The small fee would have been nothing compared to the $50k I overpaid on the house. A professional could have handled negotiations, ensured I didn’t bid against myself, and arranged proper inspections. They would have guided me through the contract process and probably saved me from all the post-purchase headaches I experienced.
Overpaying on More Than One Property
And it wasn’t just this house—I overpaid for my first five properties! At the time, I didn’t realize it. I thought I was getting good deals, but now, with years of experience behind me, I can see just how much I overpaid.
I didn’t understand the market, and I didn’t have the right people advising me. That lack of knowledge and guidance cost me significantly in those early days of property investment.
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The Value of Expertise: My Biggest Learning
This whole experience taught me many important lessons about property, but the most crucial one is the value of expertise. Whether it’s a mortgage broker, a buyer’s agent, or a lawyer—having the right professionals in your corner can save you time, money, and an immense amount of stress.
When I reflect on those early days, I realize that the person I was back then didn’t know what I know now. It’s not just about making the right decisions—it’s about knowing what you don’t know. And it’s in those gaps where the most expensive mistakes are made.
Frequently Asked Questions:
1. What should I do if saving for a deposit feels overwhelming?
Start by setting realistic financial goals, exploring government grants or schemes, and consulting with a mortgage broker to understand options like low-deposit loans.
2. How can I avoid overpaying for a property?
a. Work with professionals such as a buyer’s agent.
b. Conduct thorough market research.
c. Avoid emotional decisions and bidding wars.
3. What are common mistakes first-time buyers make when negotiating?
d. Overbidding due to excitement or pressure from agents.
e. Failing to research comparable properties.
f. Negotiating without professional advice.
4. What is due diligence, and why is it important when buying a home?
Due diligence involves inspecting the property, reviewing legal contracts, and understanding potential risks or hidden costs. Skipping these steps can lead to financial loss and unexpected repairs.
5. What are the risks of choosing a professional based on community recommendations rather than expertise?
While community recommendations can be helpful, they may not always align with your best interests. Always verify the professional’s credentials, experience, and customer reviews before making a decision.
At Wealth Through Property, we specialize in guiding homebuyers and property investors through every step of their journey. Our expert team ensures you make informed decisions, avoid costly mistakes, and maximize your property investments.
Whether you’re buying your first home, investing in short-term rental properties, or building a portfolio through SMSF, we have the expertise to help you achieve your goals.
