‘P**sed off’: Young Aussie’s rude shock after discovering his investment property decreased in value

A young tradie has revealed the heartbreaking discovery he made after buying his first home that left him “p**sed off” and anxious.

A young homeowner got the shock of his life when he discovered his real estate investments were devaluing.

Frank Ambesi, 32, bought his first property in 2019. He was 27, working as a mechanic and earning less than $60,000 when he purchased an apartment for $495,000 in Oakleigh, Victoria.

By 2022 the property was worth only $410,000, having lost over $80,000 in market value.

“It was going backwards in value,” Mr Ambesi told news.com.au.

He managed to offload the property in 2023 and sold it for $517,000 but after stamp duty he didn’t make a profit.

“It wasn’t a good feeling,” he said.

Frank Ambesi, 32, bought his first property in 2019. Picture: Supplied

The property he purchased was an apartment converted from an old hotel. Picture: Supplied

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Mr Ambesi explained that once he started seeing properties in the local area selling for cheaper than his property it was a real “oh sh*t” moment.

“In the early days I was anxious and it was holding me back and I just felt like I’d made a mistake,” he said

Mr Ambesi said that, in hindsight, he “overpaid from day one” and should have seen the warning signs, but he was an inexperienced buyer.

When he purchased the property, an apartment in the same building had recently sold for $30,000 cheaper, but he was told the property had already gone up in value since then, and he believed it.

The homeowner said the problem with the property is that it is very small and there’s no carport, making it not an ideal investment.

At the time, he tried to rectify his real estate mistake by investing elsewhere.

He bought a townhouse off the plan in Cranbourne in Victoria for $490,000, and, almost instantly, its value dipped by $60,000.

“The bank valued it at $430,000, and I had to put down an extra $60,000 and realised that the two properties I had bought were really bad properties,” he said.

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The second property instantly decreased by $60,000. Picture: Supplied

He purchased the second property in Cranbourne. Picture: Supplied

Things got so dire that he had to ask his mum for financial help, and he felt like he’d made a massive mistake.

“I lost all that money and it really pissed me off,” he said.

The property investor also tried to sell that property in 2023, but after six months on the market he gave up.

“I couldn’t sell it,” he said.

Instead of giving up on the property market, the young Aussie decided to educate himself about real estate and investing.

“I started listening to podcasts and reading books and I was obsessed,” he said.

“I wanted to fix my own mistakes and educate myself. I learned so much about research, you can’t just buy any property; you need to make sure it’ll grow in value.”

Mr Ambesi said you have to understand the market, do your research and have a firm grip on what makes a market grow.

Frank Ambesi now works in property full-time. Picture: Supplied

He owns seven properties, with plans to buy more. Picture: Supplied

The self-taught Aussie started applying what he’d learned about real estate and investing, and he now owns eight properties.

This time, though, he did it right and invested in high-growth areas and better-value properties with features such as driveways.

He is now a self-made millionaire. Even the one property that he couldn’t sell has worked out okay now.

Rents have increased enough to help cover the mortgage and he can now afford to hold onto it in order to eventually achieve some long-term growth.

The young investor said his property portfolio is now worth millions, and in 10 years, he plans to earn over $180,000 in income just from property investments.

He has found such success in real estate that he now works full-time as a property adviser at Fresh Start Advisory.

“I love being able to help people and help clients buy their dream homes or achieve something they thought they’d never achieve,” he said.