Meet woman who says it is possible to buy a 1million home at 30

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A WOMAN who has bought a dream apartment in Sydney thanks to sensible investment, is advising twenty-somethings to think ahead when it comes to buying property.

Gabi Stephen, 31, and husband Joey, 36, have secured a $1.1 million two bed unit on Fairy Bower Road, near Shelly Beach on the citys northern beaches.

Mrs Stephen says buying in to the tough Manly market was made possible because she bought an investment unit in Pennant Hills when she was 25.

Mrs Stephen, a sustainability consultant and former event manager, saved up $20,000 in her teens and twenties, allowing her to put down a deposit on a $190,000 studio in a residential complex.

I lived with my parents and worked all the way through high school and did part time jobs. Even when I went travelling and did seasons in the snow in Japan and Canada I worked the whole time.

My earnings went in to savings. Half of my tax back each year would be spent on travelling and the rest would go in to savings, Mrs Stephen said.

Mrs Stephen rented out the Pennant Hills property immediately.

At first I was charging $290 per week in rent and breaking even, but each year I was able to put the rent up until I was making $1000 extra on top of the rent, she said.

The extra funds, along with additional savings, allowed Mrs Stephen and her husband, a project manager, to each put a sizeable share in to the 10 per cent deposit on their 75 sq m Manly unit.

Mrs Stephens studio goes up for sale on Saturday and is expected to fetch $290,000 an $100,000 increase on the purchase price.

I wouldnt have been able to get a property loan if it wasnt for Pennant Hills. It hasnt been a burden to me in the slightest.

I was never out of rent for more than a day, Mrs Stephen said.

She advised young investors not to procrastinate and to get on to the property market by living at home, saving and scouting out an affordable area with a high rental return.

In your 20s you dont necessarily want to be thinking about being tied down to a mortgage, but it is so important to make these decisions when you are young, she said.


Live with your parents or in a shared house

Save (but still have fun). Put away half of your tax return or bonus and use the rest for travel.

Buy in an area you can afford you dont want to be a slave to a mortgage in your twenties

Research and find a pocket where you get high rent for your mortgage, for example Pennant Hills is close to Macquarie University


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