What if I told you, you could buy a three-bedroom home, 45 minutes drive from Sydney’s CBD and pay just $700,000?
To me, that looks like a pretty good deal when the median house price is over $1.5 million in Sydney. The only catch is that it would mean you have to live in Bidwill out near Mount Druitt.
Most first-home buyers would run for the hills before buying in Bidwill. While at the same time complaining that they can’t afford a home in Sydney.
The reality is that they probably can afford a home in Sydney – it’s just not their dream home in their ideal location. And they certainly aren’t prepared to sacrifice and live somewhere that is less than perfect.
As it happens, my parents actually started off living in Bidwill. It wasn’t glamorous, but it was what they could afford at the time – probably around $50,000 or $60,000.
They worked hard when they were young and because they were patient, that same modest house is now worth between $500,000 and $700,000. But they didn’t stop there.
From Bidwell, they moved to Wilberforce, purchasing a property for $180,000. Years later, they sold it for $575,000. Their next move was even more impressive – they sold a house they bought for $630,000 for a whopping $2.2 million.
This 40-year journey allowed them to retire comfortably. What they did was no secret investing strategy. They simply never overextended themselves, and bought what they could afford and slowly built their wealth over time.
Unfortunately, in 2024, this approach seems to have fallen out of favour. As the Director of a top buyers agency in Sydney, I see so many people who aren’t willing to start small or make sacrifices. They want it all, and they want it now.
Just look at the popularity of services like Afterpay and Zip Money. People are desperate to appear wealthier than they are, even if it means taking on debt. The success of luxury brands like LVMH is another symptom of this “keeping up with the Joneses” mentality.
Don’t get me wrong – I’d love to live in a waterfront property in Point Piper. But I can’t afford it, and I’m okay with that. It’s about being realistic and working within your means.
It’s also about being patient and realising that property investing comes down to buying well and then having time in the market. Just because you can’t afford your dream home today, doesn’t mean you won’t be able to in time.
If you start small, your wages will rise over time and if you are accumulating assets, their value will rise as well. Eventually, you will get to where you want to go.
If you’re a first home buyer in Sydney it’s not easy. But in some ways, this point in time is probably as easy as it will ever be.
Sure things are harder than they were 40 years. But that doesn’t mean you give up on your dreams.
Don’t be afraid to start small and just get on the property ladder. Put your ego aside and buy the best asset you can in the best area you can afford.
Then start looking at how you can level up, through getting more skills or qualifications or growing your business. While you might feel like you’re at the bottom of the ladder today, you might be surprised by how fast you can change your situation in just 5 years. Maybe even sooner with the help of a buyers agent.
But if you never start, you’ll never achieve those dreams.
Working with a qualified buyers agent in Sydney can significantly improve your chances of acquiring a property that adheres to your financial life plan, sooner. Contact Henderson Advocacy to learn more about how we can help.
