According to REA Group, a 23-year-old investor recently purchased a $620,000 Melbourne property after saving from age 15 on a $10.95-an-hour retail wage. Bailey Robinson purchased his investment home, a townhouse and land package in the suburb of Fraser Rise in Melbourne's outer northwest, highlighting how disciplined saving and strategic market selection can create opportunities for young investors in regional and tier-two markets.
Robinson began saving in earnest after gaining his first retail job at age 15, earning just $10.95 an hour. His parents helped by allowing him to live rent-free with the condition that he consistently save money. Once Robinson accumulated $80,000 in savings, his parents matched it with $40,000 towards his investment property. The majority of his savings came from previous jobs in retail, hospitality and warehouse work, with only a small portion from his current role as a bank analyst.
The young Sydney-based investor also invested in high-growth stocks from about age 15 while maintaining conscious spending habits, such as preparing meals at home instead of eating out, using public transport, and choosing cheaper holidays. "I've always been very conscious of saving but it really started when I got my first retail job just after my 14th birthday – although it was difficult being on $10.95 an hour initially – but the compounding effect of saving and investing was definitely my recipe for success," Robinson said.
Robinson plans to buy an additional four or five properties in the next 12 years while rent-vesting, which involves renting while investing in a home that suits your budget and then leasing it out. "I'm hoping to build a big enough portfolio over time through rent-vesting to purchase a home of my own," the investor said. He received guidance from Melbourne-based property investment advisory firm OpenCorp, which his parents have used for years.
OpenCorp founder and chief executive Cam McLellan explained that getting into the real estate market was harder for young Australians nowadays, but not impossible. "They just need a smarter strategy than previous generations needed. In many cases, that means help from parents, rent-vesting, buying new, and being disciplined enough to hold for the long term," he noted. The company is seeing far more young people interested in property investing compared to 10 or 20 years ago, often beginning with parental involvement.