Aussie reveals ‘big sacrifice’ she made to buy her first home

An Aussie has revealed the big thing she missed out on to buy her first home and the $400,000 way it paid off.

Sam Davenport bought her first home when she was 27, and the decision has financially saved her.

Ms Davenport, now 37, bought her first place with her then partner in Melbourne’s St Kilda East.

“It was like the poor cousin of everything around it,” she told news.com.au.

The property advocate described it as a humble beginning, more like a “wooden tent” than a home.

She saw potential, though. Everywhere around the suburb, business was booming, and she believed it would be a smart investment.

Ms Davenport was “motivated” to get onto the property ladder and made some big sacrifices to buy.

“I didn’t have a wedding,” she said.

Ms Davenport said she was also keen because she had her “sh*t together” and was motivated to plan for her future.

The place had been owned by the same family for decades. When they bought it, it had the original kitchen and bathroom, so before they moved in, they did a mini-renovation.

“We just made it neat and comfortable,” she said.

Sam Davenport bought her first home when she was 27. Picture: Supplied

She bought and did a mini renovation. Picture: Supplied.

The couple gave the place a fresh coat of paint, bought a new toilet, found some affordable blinds from IKEA and jazzed it up.

“We moved in and hoped for the best,” she said.

Ms Davenport said they lived like that for five years, because she wanted to keep gaining capital on the property.

They then did a massive renovation.

In the middle of the pandemic, around 2020, they decided to sell.

Ms Davenport said they’d seen “amazing growth” on the property, and their neighbours’ getting a good price for their homes spurred them on.

“One our neighbours held an auction and they had a really competitive auction and got a great price,” she said.

Ms Davenport then contacted the agent who sold that property and asked if any of the buyers who missed out would be interested in buying her place.

She sold her home for a $400,000 profit.

The agent introduced her two buyers; Ms Davenport had two offers on her house and sold it off-market.

She made a profit of $400,000 on the property.

“It felt amazing. I mean, it was the plan, and it was the goal, but it was just executed,” she said.

Ms Davenport said that part of the reason they saw such big profits was that they kept any extra costs to a minimum. Selling it privately, for instance, meant they didn’t have to spend any cash on a campaign.

Once they sold, Ms Davenport didn’t jump in to buying another property immediately. It was the middle of the pandemic and she thought people were buying out of “fear” rather than smartly.

“We didn’t buy anything because housing prices were going bananas,” she explained.

Ms Davenport took a four-year break from the property market, during which time she separated from her husband.

She’s now buying a place for herself and her young daughter, and that $400,000 profit has allowed her to reinvest back into the property market as a single person.

Buying alone means that you’re getting a loan on one salary rather than two, which reduces your borrowing power.

She’s now going back into the property market as a solo buyer. Picture: Supplied

She wants to find somewhere that serves a purpose. Picture: Supplied

Ms Davenport said that as an agent, she’ll always “harp on” about capital growth and investments, but right now, she’s a completely different type of buyer.

She wants to buy an apartment, not as an investment, but because she wants “house security” and wants to remain near her daughter’s school.

She’s looking in the $1.5 million price range, which makes her an apartment buyer unless she wants a very “basic house,” but she’s not keen on renovating at the moment.

Ms Davenport said it is certainly a shift to go from buying a house to buying an apartment but she doesn’t reflect on it too much.

“No matter what bracket you’re in, you want the one above. I had a client recently working with $6.5 million and he wanted to have $8 million,” she said.

“It is a useless thought pattern.”

The 37-year-old also said that buying a property is always nerve-racking because it is a gamble.

“Buying a property isn’t always a safeguard, and it doesn’t always go well,” she said.

“It can spur you on to buy your next one or it can stop you,” she said.

Ms Davenport said that she’s buying the apartment because she can “afford” it but also because it will serve a purpose.

It’ll allow stability for her daughter and make daily life easier as she can be close to her child’s school.

“I’m going to hold it, and she can move in again when she moves out of home,” she said.

“She can keep it.”

Ms Davenport said that the “transfer of wealth” might be the only way her daughter can get ahead.

She plans for her daughter to move in as an adult and pay rent at first, but ultimately, it will be hers.