My son began his professional career just after his 22nd birthday. He held a number of part-time jobs during his teenage years, mainly to fund his social life. However, this was the first job that was in an office setting and carried serious responsibilities.
The job also had a starting salary of near $60,000, which was more than all of his previous jobs combined. This was a pivotal life moment for my son. While $60,000 is a modest sum of money by Australian wage standards, it is enough to make some big financial moves, namely in real estate.
My son wanted to own his first home within 5 years of working. He ended up owning multiple properties before 30. The following post details what got him there.
1. A steady career will be your foundation
My son chose a career in professional consulting services – think tax and accounting. While not the sexiest profession, jobs in this area promise steady advancement opportunities and above average salaries.
Choosing an appropriate career path, while difficult in its own right, is only half the equation. Staying within that industry/field for a substantial amount of time (say 3-5 years) helps build your value to potential employers, and maximises your short-term earning potential.
The appeal of owning properties was sufficient motivation for my son to keep focused in his career. To his credit, he has a decent work ethic and internal drive to succeed, which made it easier to advance fairly quickly.
However, I truly believe that he wouldn’t be where he is with his portfolio if he chose a more volatile career path. While he’s seen the success that I’ve attained in selling homes, I have always cautioned him that my line of work is seldom paved with roses.
2. Strong financial hygiene practices are crucial
Like numerous 20-somethings his age, my son has had an active social life. Sadly, a happy social life typically spells a sad bank balance.
We had several discussions (or lectures from his perspective) about him being sensible with his money. Now I was his age once, and I can appreciate having a good time with your friends. However, I also know that all good times come to an end. What’s important is having something left over once they do.
With respect to my son, he’s never missed a mortgage payment. Nor has he ever missed payments for water rates or council fees. While my wife and I have occasionally been tough on him, he remains his strongest critic. The pressure he places on himself ensures that he maintains strong financial practices, while still being able to enjoy his life.
Or perhaps my words on being financially sensible had some lasting impact on him after all…
3. A little parental help can make a huge difference
There is a glaring truth that I’ve neglected to mention until now. Sure, my son was able to secure a stable job straight out of university. However, he didn’t have the financial history to obtain home financing for his first home. Furthermore, as he went to purchase every home thereafter, he still required us to act as co-signer and provide financial support.
There’s nothing controversial in saying he needed help. Furthermore, this help in no way diminishes his achievement. He still owns multiple properties at a relatively young age. However, his home ownership aspirations were as much our core family goals as they were his personal ones.
We have always been aligned in his overall strategy in buying properties. Further, as his parents, it should be no surprise that we have a vested interest in his personal and financial well-being.
Our partnership is built on trust and security. Trust from my son that we have his best interests in mind and that we strive to provide him with fair and impartial counsel. Security that we are able to offer if things go sideways, but not to be used as an excuse for him to shirk his commitments.
The partnership has worked well for several years, and my son is better-off for it.
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It is understandably difficult for the younger generations to break into the housing market, let alone own multiple properties. You must have opportunity, resources, stability, and a considerable amount of luck.
My son has certainly been fortunate. However, through his drive and discipline, he has capitalised on these fortunes to build a better financial future for himself. There’s not much more that a father can ask of his son.
The content outlined above was written, edited and published by the Lost Realtor. The author has over 20 years or real estate sales and investing experience in the Australian property market. He has held senior positions in Australian building companies, including being the General Manager of the residential sales division of Collier Homes. His qualifications include a Bachelor of Commerce degree and a Graduate Diploma in Building and Construction Law.