The idea of creating wealth and building a secure future for my family through property has always been something that inspired me from a young age. But like many young investors, I started my journey with more enthusiasm than experience and it cost me dearly.
Looking back, my first major mistake wasn’t buying the wrong property, but starting without a clear strategy. At 19, as a commerce student, I purchased my first investment property. It was positively geared, located in a Melbourne suburb I knew well, and seemed like a safe way to get into the market. But my decision was driven more by convenience and familiarity with the area than research or fundamentals.
A few years later, with increased borrowing power, I had the opportunity to expand my portfolio. I could either invest in a well-established area with strong long-term fundamentals or follow the hype into a so-called “growth corridor.” Unfortunately, I chose the latter, encouraged by advice from a friend and wanting to make quick returns.
Not only did I buy one property in the growth corridor, but I doubled down and purchased a second. Both properties underperformed dramatically. One property took years to sell, eventually leaving me with a $70,000 loss. Even more painful was the realisation that if I’d invested in inner-city Melbourne, I could have seen $1 million in growth.
It would have been easy to walk away after such a setback, but instead, I decided to understand what went wrong. I realised that I had been speculating, not investing. I hadn’t looked at the supply and demand fundamentals.
Vacancy rates were high in the areas I’d chosen, with an oversupply of properties and limited demand. These factors made it difficult to find tenants and hurt any potential capital growth. I knew I needed to rethink my approach entirely.
With my background in data and analytics, I began to study the property market in detail. I focused on key indicators like listings-to-sales ratios, vacancy rates, and the future supply pipeline. This was my turning point. I learned how to identify suburbs with strong fundamentals and growth potential.
With a new, data-driven approach, I rebuilt my portfolio step by step. Each investment was based on careful research and due diligence. I stopped chasing trends and started targeting properties with proven demand and limited supply.
For anyone starting their property journey, my advice is simple: don’t rush. Understand your goals, research the market, and never make decisions based on speculation. Investing isn’t about quick money, it’s about building a strong foundation that will pay off over time.
That early mistake could have been the end of my property story. Instead, it became the turning point that shaped my success.