Single mum reveals the steps she took to buy a $600k property on her own at age 25 - and the 'imaginary mortgage' trick that was key to her success
- Single mother Canna Campbell revealed how she bought a property at age 25
- The 39-year-old said she worked two jobs while a student living at home
- Canna saved for six years by walking to university and packing her lunch
- She managed to buy a two bedroom apartment in Sydney for $600,000
Single mother and financial expert Canna Campbell has revealed how she bought her own property at the age of 25, after embarking on a major savings journey at just 19 while she was a student.
The mum-of-two, 39, from Sydney, said she had always been a keen saver, but it wasn't until she was 19 that she told her parents she wanted to get on the property ladder.
Six years later, Canna was the proud owner of a $600,000 two bedroom apartment in the affluent Sydney suburb of Mosman, after saving enough for the deposit completely by herself.
'I worked my ar*e off, doing two jobs while I was a full-time student and adopting all sorts of cost-cutting measures,' Canna told FEMAIL.
So how exactly did she do it?
Single mother and financial expert Canna Campbell has revealed how she bough her own property at the age of 25, after embarking on a major savings journey at just 19 (pictured now)
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The mum-of-two (pictured), 39, from Sydney, said she had always been a keen saver, but it wasn't until she was 19 that she told her parents she wanted to get on the property ladder
After Canna decided she wanted her own apartment at the age of 19, she told her parents, who supported her savings goal, and said she could live at home until she had enough money to buy somewhere and move out.
'I got two jobs working part-time while I was studying for my Bachelor's degree and took on extra shifts at the weekends and public holidays to save up extra cash,' the 39-year-old said.
'By working lots and at the weekends, this also meant I didn't go out drinking as much on Saturday nights and spend lots of money on taxis and alcohol.
'It was tough at times, but when I finally got my hands on the keys to my apartment, it was like no other feeling in the world.'
Six years later, Canna (pictured) was the proud owner of a $600,000 two bedroom apartment in the affluent Sydney suburb of Mosman, after saving enough for the deposit
As well as working two jobs while she studied, Canna (pictured) said she always walked to university to save money and also carried her lunch with her to avoid pricey cafe foods
As well as working while she studied, Canna also took on various other cost-cutting measures.
She said she would always walk to university to save money on the train fare, and she also carried her lunch with her to avoid pricey cafe foods.
'I set up a separate savings account to put all of my spare cash into, and had a rigid budget that I looked at and re-analysed every month,' the 39-year-old said.
'It's so important to prioritise your needs and wants before you set out and realise where you can cut back.
'I was dedicated to the cause of being financially independent from the beginning, and would go to inspections for places that I couldn't afford just to get a feel for the market.'
She also set herself an 'imaginary mortgage', where she tried to save exactly how much she would have to each week when she was a property owner.
After six years of dedicated saving, Canna had enough of cash to put down a deposit on a $600,000 apartment in Sydney.
'After years of saving and not being able to go on extended backpacking trips around Europe while I saved money, it finally felt so great to have my own place at age 25,' the mum-of-two said.
After six years of dedicated saving, Canna (pictured) had enough of cash to put down a deposit on a $600,000 apartment in Sydney
Canna's (pictured) tips for others who want to get on the property ladder include setting a budget, re-evaluating it ever month and giving yourself an 'imaginary mortgage'
Speaking about her tips for others who want to get on the property ladder and buy their first home, Canna said the first thing you have to do is weigh up how important it is to you.
'When I started saving, I had to weigh up if I was going to be okay with not going on various backpacking trips around Europe in order to have more financial security down the track,' she said.
'I knew it was going to be difficult, but I was also ready to make that sacrifice.'
Once you have made that decision, the financial advisor said you should set a budget and know your living expenses.
'Remember, short term pain is long term gain,' she said.
'Go through your budget every month and ask yourself if you could make any more cutbacks. Re-calibrate your lifestyle and habits.
'Not everything you value has to cost money.'
Canna is also a fan of setting yourself an 'imaginary mortgage' before you jump in and buy a property:
'An imaginary mortgage is a great way to check whether you're ready to buy a property,' she said.
'Say your potential mortgage is $500 per week, practice putting aside and saving that figure repeatedly to check whether you can afford it in a safe environment.'
The 39-year-old said you should have a dedicated separate savings account with a nickname related to your goal to keep you focused, and you should set regular savings deadlines such as by July 1, I will have saved $2,000.
'I still follow a lot of this guidance today and still own my first property; there are currently tenants renting it out,' Canna said.
'It's all about being honest with yourself and what you can do and afford.'
Finally, the financial advisor said you should never borrow the maximum amount from the bank:
'Borrow less than you can afford and be realistic about yourself and what you can achieve,' she said.
'If you do place value on an international holiday each year, then don't compromise on that.'
Canna has partnered with the Swedish payments provider Klarna - an app designed to help people manage their finances and splurges realistically. For more information, please click here.
For more information about Canna Campbell, please click here.
