06/08/2026
Is your money working for you or against you?
I had a young IT professional (let's call him Adam) who reached out to me last year about buying a house. He did not want to rent anymore and "pay someone else's mortgage" so he went out and bought a house in the outskirts of Sydney for $1.3m utilizing the 5% deposit scheme. In doing so, he spent every last dollar he had saved (around $70k in total).
Around the same time, I had another young professional (let's name him Ben) who was looking to purchase his first investment property. After talking about his goals and working out a strategy, we decided to invest in an affordable market. He also had around $70k saved and we bought him a property for $430k in regional Queensland.
7 months later:
Adam's house is now worth less than what he bought it for (after the recent price correction) and he is really struggling to make his monthly repayments, because his LVR is 95%
Ben, on the other hand, has a property that has grown $65k in value in 7 months, property is rented for $550 a week, which covers his monthly mortgage repayments. He is now saving up and on track to buy a second investment property within the next 12 months (use his savings and equity from property no.1 as deposit for property no. 2)
Same age.
Same salary.
Same amount invested.
Vastly different results.
Adam made an emotional purchase because he wanted to be able to say "I live in my own house".
Ben looked at it as an investment and understood that the house doesn't have to be "perfect" so long as the numbers made sense.
Building wealth does not depend on how much money you make or save. It depends on what you invest your money in.
Are you investing in assets or liabilities?
Please note: Above is not financial advice. Please speak with your accountant to determine what's best for your situation.