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First-Home Buyer Regrets: Lessons from Imogen Alexy’s Journey
Imogen Alexy, a 29-year-old mortgage broker, has shared her experience of purchasing her first property—a one-bedroom apartment in Glen Huntly, Melbourne—in 2020 for $390,000 with a 5% deposit. Reflecting on her decision, she urges prospective home buyers to carefully evaluate their choices instead of rushing in due to fears of being priced out of the market.
The Pressure to Buy
At the time of her purchase, Alexy felt an overwhelming urge to enter the property market quickly, motivated by the societal pressure often referred to as the “Great Australian Dream.” She admitted to feeling as though delaying her purchase into her late twenties would signify a personal failure. “I felt rushed; like I had to get my foot in the door," she said, noting the cyclical nature of the housing market.
A Shift in Perspective
While her apartment has appreciated in value by approximately $100,000, Alexy wishes she had waited and opted for a larger property in the outer suburbs that could provide better long-term capital growth. She realised the importance of considering long-term implications rather than impulsively acting on the present market conditions. “I wish I had explored options like rentvesting or sought advice from someone knowledgeable,” she noted.
Rental Returns and Future Plans
After two years in her apartment, Alexy now rents it out for $350 per week and lives with her partner in nearby Glen Iris. As she saves for a second property, she expresses frustration at not being able to leverage equity from her first purchase, wishing she had opted for a more substantial asset to facilitate quicker investment opportunities.
According to a recent Finder survey, 45% of first-home buyers from the past year have expressed regret about their purchase decisions. Common concerns include overpricing their homes (26%) and a lack of sufficient deposit (11%).
Understanding Market Dynamics
Recent findings show that it’s becoming increasingly common for first-time buyers to act out of fear of ongoing price increases, with 38% of buyers feeling compelled to make swift decisions. Graham Cooke, Finder’s head of consumer research, indicated that this reflects a blend of ambition and anxiety—fear of missing out on future opportunities.
Budget Constraints and Regret Management
Compounding the concerns is the financial strain many buyers experience. Approximately 14% of new homeowners report having no savings left, while a third have less than $10,000 in reserves. While Alexy is content with her 5% deposit scenario—which allowed her to maintain some financial flexibility—she highlights the importance of not stretching budgets too thin.
Anne Crarey, executive general manager of property services at Little Real Estate, notes that first-time investors often stumble due to inadequate research, unrealistic expectations regarding returns, and a lack of planning for potential maintenance costs or periods of vacancy. “Emotion can drive rash decisions; it’s crucial to approach property buying with a strategic mindset,” she advises.
Recommendations for Aspiring Buyers
In light of her experiences, Alexy encourages aspiring home buyers to conduct thorough research and consult industry experts before making decisions. "It’s easy to become fixated on one property or idea without considering other options,” she remarked, stressing the importance of patience. “Take your time to realise that everyone’s journey is different; there’s no rush to buy.”
She also emphasises the need to factor in a property’s growth potential, acknowledging that many will not live in their first home indefinitely. "Understand that your first purchase is often a stepping stone to a more desirable long-term home,” she concluded.
Conclusion
Imogen Alexy’s journey underscores the importance of informed decision-making in property investment. By focusing on long-term outcomes and seeking guidance, first-home buyers can better navigate the complex housing landscape and avoid common pitfalls that lead to after-the-fact regrets.
