- Property Hack
- Pages
- From Renter to Homeowner: A First-Time Buyer's Auction Journey
From Renter to Homeowner: A First-Time Buyer's Auction Journey
When Mitch's landlord hiked his rent by 32%, he faced a pivotal decision—continue renting or venture into homeownership.
Twelve months later, he's successfully navigated the property market, including an auction experience.
What helped with the process and purchase?
A trusted friend accompanied Mitch to the viewings, and was a helpful sounding board. Mitch also connected with a mortgage broker who’s knowledge and insights around property purchasing were invaluable.
“The broker walked me through the whole process.”
The Space: The move from a one-bedroom to a two-bedroom apartment has transformed Mitch's daily life, particularly his work-from-home setup.
"During COVID, my office was a desk immediately next to my couch. That was terrible.
Now at the end of the day I walk out of my office and I close the door. And I'm in a whole ‘nother room.
That makes such a difference."
The Auction: Held at the apartment itself rather than an auction house, Mitch described the atmosphere as "cosy" with "your eyes on the prize."
How did you navigate the auction? Did you have a lot of guidance?
“Oh no.
I got a little paddle and I held it up and said a number.”
With minimal information and a competitor standing directly behind him, Mitch took the initiative to place the first bid when no one else did.
Mitch had a comfortable price point that he was not going to exceed and was comfortable making increments within that budget. A trusted friend also accompanied him and provided input, telling him at one point to,
"…slow it down."
The more challenging aspect came when—despite being the final bidder—the agent announced the reserve hadn't been met, requiring Mitch to increase his offer with little transparency about the process.
After weighing up his options, Mitch decided to increase his final bid, as the property remained within his budget and he was determined to secure the sale.
The Decision-making: Mitch's confidence in his purchase came partly from seeing what he didn't want - with a very helpful second viewing at a dark and damp property highlighting this.
“It was nice the first time… the second time I went back… I was looking at all these things.”
A number of red flags presented, including flood, damp and mould concerns.
"There was stuff rotting in the storage lockers.
Every time it rained, that's coming into your deck.
There was an exposed sandstone wall that was wet. It hadn't rained in a week but it was still wet."
These warning signs became more obvious and transparent during the second viewing. In addition, having the same trusted friend accompanying him for this viewing helped; a reliable sounding board with aligned views, to talk through the concerns.
This property was cheaper than the one Mitch settled on. The agent had insisted on Mitch making an offer. These factors all combined to help reaffirm his auction purchase - and confidently put up his final offer.
The one that Mitch chose:
Seeing the contrast between the two properties, damp verses light, Mitch shared that this helped.
“It has a huge wrap around deck, north facing [southern hemisphere purchase].
I’ve got an herb garden that’s going nuts.”
For the other property, Mitch reflected that “there wouldn’t be any light getting to it…in the middle of summer, there would’ve been some in the morning.”
Conclusion: Mitch's journey highlights some key elements for his first-time homebuyer success: a trusted personal advisor who shared his values to help with viewings and emotional decisions; a knowledgeable broker who helped demystify the purchasing and financing process; and the confidence to recognise red flags while appreciating value—even when it may come at a slightly higher premium.
One year later, with herbs flourishing on his sun-drenched deck and a dedicated workspace, Mitch's 32% rent increase turned into an investment in both property and quality of life.