Homebuyer Dan Hynd saved for six years to buy a four-bedroom home in Logan Reserve. Picture: Liam Kidston
First-home buyer Dan Hynd saved for six years to scrape together a deposit for a four-bedroom house at Logan Reserve.
But the 25-year-old was able to purchase another property just a year later by employing a savvy strategy to pay down his mortgage.
Mr Hynd has just settled on his second home, a four-bedroom house at Yarrabilba which cost $550,000.
He used equity from his first property at Logan Reserve, which he purchased for $415,000 in February 2021 with a ten per cent deposit.
Mr Hynd said he opted for a house over a traditional entry-level townhouse or unit in order to rent out the extra rooms for $200 a week to boost income.
Mr Hynd bought his first home in 2021. Picture: Liam Kidston
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“That way, I pay next to nothing when it comes to rent.
“Essentially I built up a lot of extra savings by renting out the rooms, so the property I am living in now basically operates as a cash cow,” he said.
With his first home revalued at $560,000 one year on, Mr Hynd consulted Better House Brokers and worked with senior broker Norrie Wirihana to obtain finance for another investment.
Mr Hynd was 19 years old when he set a goal of becoming a home owner, but never expected house prices to soar so high before he was able to crack the market in 2021.
He bought a house with four bedrooms so rent from his roommates would help cover the mortgage
“I was living out west and things weren’t going well at that stage of my life, but for me it brought about a clear goal of what I wanted, and buying a house was a big part of that,” Mr Hynd said.
“I realised it’s not an overnight process, it’s going to take years, but if I can just start saving that goal will be closer.”
He switched careers from hospitality to financial services, along the way gleaning a greater understanding of how to better manage his own money.
After a frustrating experience of house-hunting amid surging demand through the pandemic, Mr Hynd took a chance and put in an off-market offer for the home he had been renting for four years.
Mr Hynd invested in the growth area of Yarrabilba
“Before I purchased it I had been looking around and prices were absolutely ridiculous. I’d go to open homes and make offers, and even though they were offers that I thought were above and beyond, they weren’t even getting acknowledged,” Mr Hynd said.
He advised other first-home buyers to consult a mortgage broker early in the process — but said for now he planned on monitoring rising interest rates.
“I think for the next 12 months I’m just going to sit back and watch. It’s hard to understand, even with my experience, exactly what’s going to happen with the market.”
