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Friday, February 26, 2021

Homeowner reveals how he bought a $470,000 property by himself at the age of 27

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An Australian customer support specialist has shared how he purchased a house by himself at the age of 27 after noticing a massive drop in property prices and interest rates during the coronavirus pandemic.

Toby Rozario, now 28, from Melbourne, bought his lush two-story home on October 1, 2020 for $470,000 with a 15 per cent deposit.

‘I was actively looking at properties early last year before the pandemic hit, but didn’t find the right home that matched what I was after,’ he told FEMAIL.

‘I’ve always wanted to buy a property, but it was just a matter of when I was going to do so.’

To achieve his goal, Toby only had one source of income and didn’t implement any complicated strategies besides saving 73 per cent of his overall annual salary. 

Toby Rozario (pictured), now 28, from Melbourne, bought his lush two-story home on October 1, 2020 for $470,000 with a 15 per cent deposit

Toby Rozario (pictured), now 28, from Melbourne, bought his lush two-story home on October 1, 2020 for $470,000 with a 15 per cent deposit

To achieve his goal, Toby only had one source of income and didn't implement any complicated strategies besides saving 73 per cent of his overall annual salary

To achieve his goal, Toby only had one source of income and didn’t implement any complicated strategies besides saving 73 per cent of his overall annual salary

When he was younger, Toby was taught the Great Australian Dream of the ‘need to buy a property’ and gain a sense of ownership.

As a result, Toby has always been an active saver and could’ve purchased a home sooner, but enjoyed mindlessly spending money on food delivery services and social events in his early to mid-twenties.

‘It wasn’t until I turned 26 that I changed my lifestyle, lived below my means and started taking money more seriously,’ he said.

Toby admitted he became a rapid saver and spent as little as $400 per month on groceries and utilities he needed in addition to rent payments.

‘I would basically work, come home and that’s it – but it worked for me,’ he said.

‘I don’t buy many new clothes and have owned the same pair of jeans for the past six years.’

When he was younger, Toby was taught the Great Australian Dream of the 'need to buy a property' and gain a sense of ownership

When he was younger, Toby was taught the Great Australian Dream of the ‘need to buy a property’ and gain a sense of ownership

Toby admitted he became a rapid saver when he turned 26 and spent as little as $400 per month on groceries and utilities he needed in addition to rent payments

Toby admitted he became a rapid saver when he turned 26 and spent as little as $400 per month on groceries and utilities he needed in addition to rent payments

Toby said the progression towards owning the huge home was ‘seamless’ and ‘transparent’ as he had assistance from a mortgage broker and conveyancer.

The initial stages of buying a home involved calculating how much he was able to borrow from the bank – which as a maximum of $500,000.

Toby also had an advantage over others as he works in the real estate industry and had a general understanding of what needed to be done.

‘During the pandemic I saw an opportunity; I noticed interest rates were at an all-time low in Victoria and real estate prices had dropped,’ he said.

‘The process was rushed but not in a negative way – the house was only on the market for less than two weeks before I settled to buy it.

‘As soon as I walked into the home, I knew it was the one I wanted.’

The house is newly developed with three bedrooms, two bathrooms and a garage located in Wyndham Vale, 50-minutes west from the Melbourne CBD. 

The house is newly developed with three bedrooms, two bathrooms and a garage located in Wyndham Vale, 50-minutes west from the Melbourne CBD

The house is newly developed with three bedrooms, two bathrooms and a garage located in Wyndham Vale, 50-minutes west from the Melbourne CBD

Toby said the progression towards owning the huge home was 'seamless' and 'transparent' as he had assistance from a mortgage broker and conveyancer

'The process was rushed but not in a negative way - the house was only on the market for less than two weeks before I settled to buy it,' he said

Toby said the progression towards owning the huge home was ‘seamless’ and ‘transparent’ as he had assistance from a mortgage broker and conveyancer

The initial stages of buying a home involved calculating how much he was able to borrow from the bank - which as a maximum of $500,000

The initial stages of buying a home involved calculating how much he was able to borrow from the bank – which as a maximum of $500,000

According to realesatate.com.au, when considering purchasing a property as a first home buyer it’s important to have regular income records on file to show your lender, have a ‘healthy’ deposit to put towards the property and understand the costs associated with purchasing property.

To estimate how much money you can borrow from the bank, there are a variety of online mortgage calculators available to assist.

Property fees in addition to the deposit include stamp duty, government fees, building and pest control, council rates and building insurance. 

Toby’s advice when purchasing your first home

Find a mortgage broker and conveyancer you trust to streamline the process of purchasing a home

Choose a mortgage broker and conveyancer that isn’t afraid to answer any questions you may have

To save money, live below your means and only spend money on what you need not what you want

Consider what type of property would be best for you – townhouse, apartment, house, block of land

Aim to pay between a 10 to 15 per cent deposit  

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Toby has always been an active saver and could've purchased a home sooner, but enjoyed mindlessly spending money on food delivery services and social events in his early to mid-twenties

Toby has always been an active saver and could’ve purchased a home sooner, but enjoyed mindlessly spending money on food delivery services and social events in his early to mid-twenties

When asked what tips he would give to other young individuals wanting to delve into real estate, Toby said: ‘Stay in your own financial lane and understand what you can and can’t afford.’

‘Divide purchases into ‘needs’ and ‘wants’ – then consider whether what you want to purchase is necessary.’

Toby also highly recommended finding mortgage brokers and conveyances you trust who will answer any question you may have.

In the next three years Toby hopes to purchase a second property as an investment.

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

Source: TikTok

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This post was first published on DailyMail.

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