Biggest Lessons From Buying Your First Investment Property
Buying your first investment property can be extremely difficult and there are a lot of lessons to learn on the way. Today Simon shares his top learning from buying his first investment property last month.
0:00 – Introduction
0:31 – Simon’s property rollercoaster, his tenant stopped paying rent!
2:15 – #1: It wasn’t as difficult as you thought it would be
3:25 – Why was buying his first property so simple for Simon? His support network!
5:27 – What can people do who don’t have that support network?
7:13 – #2: Having the right strategy is crucial
Free property strategy session – https://onproperty.com.au
11:12 – #3: It took longer than expected, but waiting was worth it
13:33 – #4: Staying disciplined when saying your deposit is key
19:05- How does it feel to own your first investment property?
buying your first investment property can be extremely difficult and there’s a lot of lessons to learn along the way so today I have with me buyer’s agent Simon Everingham who’s recently purchased his first property how’s it going Simon hey yeah really well thanks and I thought we were talk today about some of the biggest lessons that Simon had and some of the things that he learned going through and actually saving his deposit and then buying his first investment property which is secured just a month or two ago so first first up Simon congratulations on the investment property we did new videos about a month ago talking about that but how’s it been going since then oh it’s been a bit of a rollercoaster actually my tenant actually went on holidays to America and when he went over there his rent was bouncing back because he was overseas so he’s gone for like three weeks and he’s not paying me random like oh my gosh this is my first investment property and my bloody tenant has just done a runner on me and I haven’t been receiving rent and the mortgage is coming out of my account I’m just like ah what do I do I was freaking out for a little bit but then he got back and I called him up and I’m like Nate like that is so unacceptable and he’s like look I’m so sorry I didn’t mean to happen and he just transferred it all back so I spent like three weeks just bashing myself up in my own mind for no reason whatsoever it was just a complete mistake complete accident but you know that’s sort of some of the things that can happen and it’s just funny that happened to my first investment property ever and it’s happened so early as well we haven’t really had the time to build it build up your buffer fund and to have that buffer of cash there when stuff like that does happen so I can imagine that would have been super stressful it was so stressful because I put pretty much all of my savings that I had into the deposit and then I had a little bit of surplus left over which went into the renovation so my council looking very lean at that point in time but yeah all is good now he’s back in and it’s all on track now so yeah awesome okay so let’s talk through we kind of talk through this off-camera and we’ll go through some of these learnings that you had let’s go through the first one where you said that it wasn’t actually as difficult as you thought it would be yeah so I think it’s a good place to start for this video because a lot of the other things that we’ll talk about talked about kind of linked back to this sort of idea that I I didn’t find it as stressful I didn’t find it as as time consuming as I thought it was going to be there are lots of things that obviously came up and those you know times where it was it was really tough to just continuously put that deposit away and know what you’re saving for a bit now that it’s all kind of said and done and it’s just now ticking itself away I’ve just realized that what was nowhere near as hard or a stressful or as daunting as I was expecting and now that I’ve kind of got all those funds together and I’ve got my account set up well it’s really easy to kind of just let it go let it do its thing and then focus on the next yeah so for a lot of people buying their first investment property is quite daunting quite difficult quite overwhelming what do you think made the difference for you whereas with other people would really struggle with that and they would find a very difficult task and for you you didn’t so what do you think differentiates you to other investors out there looking at buying their first property what I think I had around me that lots of first-time investors that I talk with don’t actually have is a great support network around me so working in a buyer’s agency and understanding the ins and outs of property investing in Australia plus also having a great team around me like my brother band that you guys have seen in lots of other videos my sister crystal my parents yourself Ryan and I had mortgage brokers I had solicitors I had all these people surrounding me that were helping me make the right decisions at the right time helping me stay focused on my strategy so that made it a lot easier but I talked to so many people that don’t that support network or team around them that’s helping them make the right decisions at the right time so many people especially the ones that I talk to in Sydney and Melbourne freaking out about property right now and anytime they even consider it they like might go out and read Rich Dad Poor Dad and be like ah sick I just need to invest I’m gonna do it and then they talk to their best friends I talk to their parents they talk to that Arnie’s uncle’s grandparents colleagues whatever and they’re all like I know you’re you’re an idiot don’t get into the property market it’s going to crash and there’s a real negative sentiment around making those decisions so understanding your strategy understanding your market understanding the value of investing in property and what you’re doing it for and having the right team to support you to help you make the decisions I think that was the biggest factor in making this process as easy as possible and what do you think people can do who don’t have that support network but you work for a buyer’s agency brother is a buyer’s agent your sister is a buyer’s agent your mum is a rental manager like your whole family is in the property industry so obviously you have a bit of an unfair advantage there but do you think there’s any tips that you could give to people who who don’t come from a family of investors so how they can reduce the overwhelm find support maybe educate themselves yeah definitely I think you know everyone that’s doing what they’re doing right now I’m watching this video is already taken that first step and it’s great that there’s these podcasts and YouTube videos out there that you can kind of relate to these people you listen to stories you hear about case studies you hear about different strategies and you can begin to educate yourself about how it can be done why you should be thinking about investing and I think that’s a really good starting point what really opened it for me in the beginning was Rich Dad Poor Dad which I just mentioned before which I think like that’s a great book for people to just switch their mindset from that fearful go to school go to university get a good job buy your house pay off your mortgage you know that poor dad mentality I think grabbing that book and reading that book is just like a really good way to switch the mindset you know and I’ll link up to that book down below or you can go to onproperty.com.au/free would such that if you just want to go ahead and pick that up through my affiliate link there so that links into one of the other things that we had listed down and that’s how crucial it is to have the right strategy and I think that was really important for you I know being on the road with you I know the properties that you were looking at knowing your strategy knowing the types of properties you wanted to invest in choosing the market that aligned with those properties in the price range of those properties and then you obviously wanted a property that had potential to build a granny flat as well so how important was strategy to you when you’re investing in terms of making it easier to invest and less overwhelming I think it’s pretty much the number one thing that helped make this as easy as it as it actually was I did the research I developed my strategy and I added myself around ways to achieve my short and longer-term goals so strategy is just so important especially in Australia like property is done so well all over Australia over the longer term like there’s no doubt about it that there is someone in your life that has successfully made good money in property so when there’s so many different opinions there’s so many different strategy there’s so many different ways to generate financial freedom through property it’s very noisy it’s very very noisy so developing the right strategy for you and your personal risk profile your situation your goals is so important I think you know the best way to actually do it is to get a big picture first so look at what you want in the future like why are you actually investing in so understanding why and you know for me it’s to have my own insurance policy essentially allowed me to create my own destiny in the future so I think that’s really important understanding where you want to be in the future and define the wire and then peeling that all the way back to okay well where am I at right now and how can i strategically make certain decisions or implement certain things to help me achieve that longer-term goal so it needs to start big and then you need to scale it back to right here in order to facilitate those decisions yeah and then obviously your strategy needs to look at what are your next steps and so what’s your next major step is in what’s going to be the first investment property that you purchase and how is that going to then lead into number two or number three and move you towards that big picture goal of financial freedom so yeah it was really good seeing you had that strategy because I know being on the road with you that you sometimes your your eyeballs deviated from that strategy because you seen these in the market but then you always came back to that strategy and even though you would kind of tease with with other options that were out there that really kept you grounded and really kept you on target because you had that big picture goal in mind you knew what you needed to buy in order to move you towards that and it’s great to see that you actually bought that if you’re out there and you’re thinking okay yeah strategy is the most important thing but I need some help developing a strategy for myself I don’t know how to do it what strategy is going to get me from A to B then Simon and the team over pumped on property do offer free strategy sessions to listeners out there so if you go to onproperty.com.au/free strategy session which is just a phone call with Simon or one of the team members and you can talk through your situation where you’re at what your big picture goals and then basically get it down to the point where you know what your next steps are so head over to onproperty.com.au/contact that out and if you need help booking a strategy what other things that you learned apart from it wasn’t as difficult as you thought strategy was super important what were some other things yeah one thing that was massive is it actually took a while for me like it wasn’t something that just happened to overnight like I knew I wanted to invest in property like three years ago and at that point in time I was still at university so I couldn’t really do anything about my savings I was living week to week and then once I’ve got a full-time job and I was able to start putting my savings away toward that deposit it takes a long time like it wasn’t something that just happened so quickly which it was a blessing in disguise like I think people that are out there that have been saving for a long period of time like that’s awesome congratulations but I hear so many stories of friends and other people that I talk with that just have the deposit there then they get excited about property and then they rush into the market and they emotionally purchase something that isn’t actually going to serve them the best way that it possibly could so having the time was so good because it allowed me to look at different strategies identify exactly what I wanted long term and then scale it back to exactly what I needed to purchase right now so you know it took me almost two years to actually secure that property from when I physically started putting savings away so that worked really well it allowed me to get educated it allowed me to understand exactly what I needed to purchase and I’m grateful for the fact that it took a little bit longer and I didn’t make an emotional decision and purchase the wrong asset because it’s it’s so easy to do like there’s so many property marketers properties brokers out there that are going to just sell you into some absolute and pocket a whole chunk of change like you really need to get educated and figure out exactly what’s going to serve best you know even there’s a lot of opportunities in the market that could be good opportunities to quote unquote make money but might not be the right opportunities to move you towards your financial goals where yeah you know I’m sure you saw a bunch of those as well was it hard to stay like disciplined and focused during that two-year period of saving your deposit because I bet like being a young guy as well like what are you 25 or something 26 year 26 like being young I bet your friends aren’t like necessarily saving their deposit and living like a uni student was that difficult for you how did you stay disciplined how did you stay focused on that journey oh I’ve always been really stingy with money like ask any of my friends like when I was younger I was always the guy that was like but let’s split the bill for exactly how much we paid so like I’ve always been calculated with decisions that I make with money but yeah it was so hard to say to stay disciplined throughout that entire period of time especially when you get to the point where you got like twenty thirty thousand dollars in your account and you’re like oh my god I could just go to South America or Europe and just travel for two years I could just you know buy something stupid like at one point I was about to buy myself a three thousand dollar push bike and you know it was really hard to stay disciplined because you get super emotional and you create these stories in your brain to justify the decisions that you want to make and it’s that’s why I think it’s so important to have that support network around you that’s like okay I understand why you want to be doing that like you’ve been working your ass off to try and get this deposit two together and it’s just kind of sitting there but you know you’re working to something you’re working towards something that there’s bigger than material objects like you’re working to something that’s going to secure financial freedom and having that big picture outlook you know that’s why we need to have a strategy we need to have a long-term strategy understand where want to be because then when you’re about to make those emotional stupid decisions it’s so easy to just be like okay I’m justifying that dumb decision in my own mind right now but I can also justify why I shouldn’t be purchasing that in you know I was that was periods of time where I wanted to go on holidays I wanted to buy expensive things and I just took time as opposed to emotionally purchasing something I took time to logically think about that and then eventually just was like okay if you do that you’re putting your property on hold by three months I’m like that’s putting your financial freedom on hold but probably more than three months and I’m like that’s that’s a pretty easy decision to make is that is that how it kind of helped you get through that decision like do you regret not buying the bike no the hell no of course not like I used to be right into downhill mountain bike riding when I was like 15 years oh just a little grow me ride my bike around good times and like my neck still name but I just I knew this get to act and he was writing heaps and I’m like I need to get one this is gonna be mad I want to get back into it and I’m like I haven’t even gone I’ve already got a bike and I haven’t even gone for Dan Hill mountain bike ride in like eight years I’m like what’s putting it like why not just wait a little bit longer yeah I feel like give your mountain biking every single day and like you need a new bike because of that but if you haven’t done in eight years I really liked what you said there about how you know if it’s going to take you buying that bike was then going to take you an extra three months to save your deposit extra three months to get into the market but thinking about how oh that’s actually going to delay my financial freedom by three months or even potentially longer than three months into the future it’s really a really cool way to look at it to say okay by not making this decision today what am I getting like by not making by not buying the bike I’m actually buying myself three months of financial freedom in the future and so that’s a really cool way to look at it I think three months is like conservative I reckon like three months could equate to like a year or two years in the property market like you listen to all successful investors like they all talk about time and market and how they all wish that they got started one or two years earlier and I just kind of stuck by that it’s a period of time and I was like look I’m young I want to get into the property market I know it’s going to benefit me longer-term so like it would have taken me an extra three months to save up the money that I would have spent but it could have pushed that financial freedom much longer because once you set that intention it might not just be that one stupid purchase I might purchase the bike and be like oh that was easy I might buy something else now because you’ve you’ve broken the habit of just saving and you’ve you know changed your mindset so yeah it’s a it’s a slippery slope I think just purchasing dumb and then I think as well you don’t know what’s gonna happen now that you’ve delayed it three months you don’t know what’s going to happen in that three months like what do you lose your job or your income goes down or health issues come up or relationship stuff happens that distracts you in that three month period so you’re kind of opening yourself up to more life risk in that period of time as well exactly so finishing off this episode how how does it feel now that you own your first investment property so obviously we know the logical stuff we talked about some of the lessons that you had but how do you feel now that you own the your own one you finally own one what what is different now than before you owned one I feel obviously proud I think it’s a massive accomplishment for anybody that’s purchasing their first investment property it’s really nice to know that I’m like 25% of the way there to financial freedom maybe even more because getting into your first properties is the hardest so you know I could even be thirty forty percent of the way to my financial freedom now and I’m like that’s really exciting and knowing that I’m only 26 years of age I’ve made a really smart financial decision I purchased really well it’s it’s a really nice fulfilling feeling and I think that’s really important as well like we all set ourselves these big goals and grand plans and then sometimes when people actually achieve some of those goals especially through the journey to financial freedom because it takes a long long time like you need to be stoked on the goals that you’ve executed on the steps that you’ve made towards financial freedom so you know I took some time and I’m really proud of myself I feel like I’ve accomplished something massive and yeah it just motivates me even more to keep going in and go for that next one as soon as possible as opposed to just being like oh cool I’m done now because I know it’s a journey and I know it’s going to take time yeah it’ll be really interesting to see at what age you feel like okay I’ve now got my foundation for financial freedom I’m set up for future financial freedom be really interesting to watch how long that takes you and when you reach that point you’re like okay now I think I’m 100 percent of the way there obviously not financially free yet but as these properties pay themselves off just by their very nature I will be so that’ll be really fun to watch thanks for taking the time to come on and share some of your learnings again if you need help with your strategy then Simon and the team Everett pumped on property are offering those free strategy sessions so just go to web browser go to onproperty.com.au/free time that suits you otherwise if you want to keep listening then go ahead and check out the video where we talked about how Simon bought his first property and we go into some of the details there and I’ll link that up down below as well thanks so much for tuning in everyone thanks so much for coming on today Simon no worries and until next time stay positive