You may have noticed I have not been posting much lately. As I mentioned in my last quarterly update we recently sold our home in Sydney.
Since that time that place has settled, we have moved up to the Mid North Coast of New South Wales where my husband grew up. Whilst we have been staying with family for the past month or so I am excited to say that as of a week or so ago we moved into our very own family home – mortgage free!
So between packing and moving as well as taking my freelance marketing business full time, unfortunately, I have had little time to get online and give the blog the love it deserves.
I thought I would share on the blog today a couple of contributing factors on how we were able to become mortgage free in our thirties.
I know for some people this can be seen as a dumb move, as there is possibly better ways our money could have worked for us. But to not have a $3500 monthly payment hanging over our heads and being able to explore working for myself. No return on investment can top that.
Reading a lot of investing info
I spent a lot of time in my early twenties reading finance related books as well as purchasing every edition of property investing magazines and frequenting a property online forum. So by the time I was ready to purchase our first property when I was 26 I knew a lot about what we were looking for. And how to structure our loans for future investing.
Not taking no for an answer
When me and my husband bought our first place I was on a low graduate level wage and he was on a part-time chef’s wage.
The traditional banks would not look at us, so we needed to go to a mutual bank that offered us a forty year loan term.
We knew we had been saving more than the repayment amount each month and had factored in a buffer on rates going up to know that we could afford the repayments.
Choosing dual income properties
As we grew our portfolio two of the properties in our portfolio where dual income. One was an investment property that had a granny flat which made the property cash flow positive from the beginning.
The other was our principal place of residence which was separated into two separate dwellings. Upstairs and downstairs.
Whilst it was a bit cosy living where we did once we had two kids, the benefits of having someone contribute to our mortgage helped us to put us in our current position.
Finding the right mortgage broker
I had worked in marketing in banks and credit unions so, in the beginning, I did not think I would ever use a mortgage broker. But when we started growing our portfolio with a property each year our serviceability started to get a little tricky.
We found a mortgage broker who specialised in loans for property investors from a recommendation from the online property forum I frequented back in the day.
They were not even in the same state as us, but we have now done about five loans through them and I will never go directly to the bank again.
Moving out of Sydney
Now this one is the biggie. If we had sold up all of our properties and just kept our principal place of residence where we where living in Sydney we could have just about had one paid of property there. But any future income would be gone.
So instead decided to keep a foothold in Sydney with our two remaining investment properties, which pay for themselves. In the worse case scenario, they will be paid off fully by the time we are between 55 and 60 years old and will provide around $40,000 income a year after expenses.
And then we purchased a home in Coffs Harbour where my husband grew up. The property is all ours and not the banks!
In the past, we had never considered moving here as the job situation is pretty bad. But these days there is quite a hub of freelance workers and startups here that I am discovering since joining a co-working space.
So far I have been able to pick up enough copywriting work to keep us afloat and if a few things pan out as I think they will next year I will be able to work about 30 hours a week to cover our families expenses.
It has not been an easy road to reach our mortgage-free status. We sacrificed lots of nights out, new technology, overseas holidays and making the decision to move out of Sydney.
But so far the leap has been paying off.
What sacrifices would you make to become mortgage free?