A couple have revealed the mistakes they made that left them with crippling debt after buying a semi-detached house in their 20s in a bid to live the “Australian dream”.
Talar and Michael Wadeson, 43, from Melbourne, built the property when they were 23, but after choosing a poor location and facing countless problems with builders, they sold it just a few years later at a loss of $30,000.
Now with five properties under their belt, the couple admit they did everything wrong the first time.
They had no idea how to invest properly, they didn’t consider other areas (both in and out of state) with a better market, and they hadn’t spent time selecting reputable builders and real estate agents.
‘It was a regrettable property purchase. It was a complete disaster, everything that could go wrong did go wrong,” Talar, a mother of four and a physiotherapist, told FEMAIL.
A couple have revealed the mistakes they made that left them with crippling debt after buying a semi-detached house in their 20s in a bid to live the “Australian dream”.
“There were problems with the property, we had tenants come and go, but we held on to it for a few years (before it was time to get rid of it).”
Talar said the initial fear of entering the market was overwhelming, especially at a young age. Now you understand how simple it can be, if done correctly.
In 2015 they made another poor decision by purchasing a unit that, looking back, was “not ideal” as a long-term investment due to strata fees and a slower growth rate compared to houses.
Two years later they decided to seek help from buyer’s agent Open Corp to avoid making the same bad decisions again.
In six years they purchased three properties that have increased in value and have an estimated equity of $650,000.
The married couple own five properties in Melbourne, Brisbane and Western Australia.
Their early experiences highlight why those looking to move up the property ladder should not “buy for the sake of buying” as problems are likely to arise and profits are not guaranteed.
Talar and Michael share the same dream: early retirement and financial security for themselves and their four children.
They have a goal of achieving $150,000 of passive income and would also like to be in a position to help support their children.
They hope to obtain a property for each of their four children while also earning enough cash flow to retire early.
The properties span Melbourne, Brisbane and Western Australia; They made their last three purchases in 2017, 2020 and 2023.
All three recent investments are new construction four-bedroom, two-bathroom homes, as opposed to established units or townhomes.
With each build, $10,000 is required to secure the land, followed by $90,000 for the deposit and other costs. The construction of the house then takes approximately 42 weeks.
In 2020, interest rates were at an all-time low and the couple was not feeling the financial burden of their assets. However, four years later, they are beginning to feel the pressure.
Michael, who is an electrician, needs to work six days a week to make payments and earn enough to support his family.
With each build, $10,000 is required to secure the land, followed by $90,000 for the deposit and other costs. The house itself takes about 42 weeks to build.
Michael, who is an electrician, needs to work six days a week to make payments and earn enough to support his family.
“Most investors are just normal people like us who want to get ahead and do something different for our children’s future,” Talar said.
‘We understand that property is a long-term plan: you don’t make money buying and selling. We worked hard to be in the position we are in and the good thing about ownership is that it always increases.’
The couple currently owes $1.7 million, but they know it’s “a good debt, not a bad debt,” and they plan to pay it off as soon as possible.
“We have an ‘old school’ mentality and want to own our properties,” Talar said.
The task is not an easy task, but first they are working to pay off their lower mortgage and then move up.
The couple is smart with their money, has a good budget, rarely goes on family vacations, and has an emergency fund “just in case” they need some extra money.
And if they really need it, they are willing to sell a property if the cost of living or interest rates soar out of control.
‘We have grown from our mistakes. He has made us better people,” Talar stated.
‘People are afraid to take the leap into ownership, but it’s actually quite simple. If I knew what I know now at 20 I would probably be retired by now.
“We have no emotional attachment to any of the houses; I haven’t even seen them all in person.”
While they have an impressive amount in property value, they don’t plan to use it yet, but will likely put it toward another new construction in the future.