I bought a beautiful beachside home in Melbourne. It was the worst decision I've ever made
The marketing professional purchased a 'beautiful' beachside apartment with her partner in Bayside, Melbourne in 2019.
When her family outgrew the home, they turned to 'rentvesting' - a strategy where you rent in a location that suits your lifestyle while owning an investment property elsewhere.
But the plan backfired, leaving the couple $30,000 out of pocket.
'Home ownership for me was hell,' the now-37-year-old said in a video.
'I bought a house in 2019 when I was pregnant with my first child because that's what society told me I was supposed to do.
'I made a decision to buy a property that I knew wasn't the ideal place.'
The couple moved into their newly built apartment, and spent the next two years enjoying life as new parents to their newborn daughter.
'For two years, we lived in this beautiful new apartment. It was 200 metres from the beach. It was great, but then we got to the point where we outgrew it,' she said.
'So we decided to rentvest, which is such a sexy buzzword. It was not sexy.'
Rentvesting is a strategy where individuals rent a home in a location that suits their lifestyle while owning an investment property in a more affordable area.
According to Commonwealth Bank, rentvesting is an approach that allows people to live where they want without compromising on their investment goals.
It's especially popular among younger buyers who are priced out of the housing market in their desired locations but still want to build equity through property ownership.
However, things didn't go to plan for Nicole and her family after they found a tenant for their beachside apartment.
'About six months into the tenancy, I realised this property was actually not appreciating at all,' she said.
So the couple decided to list their apartment on the market for sale.
'Every single weekend we would get six or seven couples coming through,' she said.
'The thing that got them every single time was the car stacker. Never buy a place with a car stacker, and that's not even the worst part.'
A car stacker is a mechanical system used to store cars vertically, allowing multiple vehicles to be parked in locations where space is limited, such as apartment buildings.
'While the place is on the market, I have this incredible tenant in there and I had to keep her in there,' Nicole said.
'If she leaves, what are the odds of me getting a new tenant when this place is up for sale?'
Unfortunately for the couple, a month on the market turned into almost two years.
'For years, I could not put her rent up. Bearing in mind that during these years, inflation is going crazy,' Nicole explained.
'My home loan had gone from 2 per cent to like 6.8 per cent and we couldn't pass on any of that.'
Despite changing real estate agents after the property was listed on the market for 18 months, they still struggled to sell it.
'It's just the same story,' she said.
But things took a turn for the worse when Nicole was unexpectedly made redundant.
'The stress I felt was immense,' she said.
The property finally sold when it was nearly up to the two-year mark on the market.
'We get an offer on the place, I jumped at it,' she said.
'I just wanted to get rid of it because every month I was paying that mortgage, I was losing money.
'I settled, I could reinvest that money and start making money. In the end, I lost $30,000 just on the sale.'
Nicole said they forked out thousands of dollars on real estate agent fees and listing their apartment on property listing websites.
'Plus every time there's an inspection, you have to compensate the tenant,' she said.
'But the relief... I go out and spend my disposable income now because I finally have some again.'
Nicole - now a mum-of-two - said her family has just moved into a new rental property at their ideal location - something they believe is the 'best option' for their finances right now.
'The main reason being that I started my own business at the start of this year, and that in itself was such a huge financial risk that I didn't need a mortgage on top of that as I wasn't going to get a home loan anytime soon,' Nicole explained.
'So what we're doing is moving into a slightly bigger rental... What sucks about it is that I still want my dream home.
'I want that home that I can make my own fitted out so it fits perfectly for my family, and this isn't going to be that. It's nothing special, but it's the best option.
'But in the meantime, I will be putting my money in a diversified investment portfolio, which for me is such a safer investment than buying a house.'
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