My Journey to Investing: Buying My Second Property at 27

I've often found myself in conversations with family and friends about investing. For those who don’t know my story, I bought my first house at the age of 23 and my second in Tokyo at 27. Although investing isn't a new concept, it wasn’t as popular back then. Today, with rising inflation and economic uncertainty, more young people are interested in investing. As someone who started young, I want to share my journey to inspire others, no matter where they are in life, to take steps toward financial independence.

Growing Up and Gaining Financial Independence

I was fortunate to grow up in a family where money wasn’t a worry. My parents ensured my siblings and I lived comfortably and enjoyed the pleasures of life, including great travel experiences. However, when they retired, our family faced financial constraints. I decided to ease their burden by becoming financially independent as soon as I graduated. At 20, freshly graduated from university in the Philippines, I made a bold decision to buy a one-way ticket to Japan with almost no money in my bank account and no experience of traveling nor living independently.

In the beginning, I worked part-time at a home appliance store while job hunting. I still remember the joy of receiving my first paycheck. It was an eye-opening moment that underscored the value of time and money. Those first four months were tough, but they were also transformative.

Starting My Career and Building Financial Habits

After four months, I landed a job as a Digital Marketing Manager and Graphic Designer at a Japanese Car Manufacturing Company. The salary was lower than the standard minimum wage, but I prioritized learning and gaining experience. I lived simply and developed a habit of disciplined spending. Each month, I divided my income into three categories: fixed costs (like utilities and phone bills), savings (50% of my income), and essentials (food, health, hobbies). Using a budgeting app, I tracked every expense, which gave me a clear picture of my finances and helped my savings grow through developing the habit of prioritizing consistent saving.

During these early years, I focused on meal prepping, healthy hobbies like jogging, and leveraging free resources to develop new skills. This period was crucial in establishing the foundation for my financial growth.

Discovering the Importance of Financial Literacy

As I grew in my career, I became more interested in financial literacy. In Japan, many people work until retirement and depend on pensions. However, the economic reality makes it difficult for many to enjoy a worry-free retirement. Seeing retired family members struggle financially motivated me to build a strong financial foundation. I rewarded myself with significant investments each year, like a Sony camera and a limited edition art piece, which fueled my passion for personal growth and financial stability.

Buying My First Property at 23

In my third year of working, the pandemic gave me the time to delve into real estate. I learned about Japan’s abandoned homes, or “Akiyas,” which are often sold at low prices. This led me to discover a beautiful Akiya on a mountain, surrounded by greenery, and decided to make a purchase as I built the capability to afford it. The experience of signing my first official property contract proved to me that starting with nothing doesn’t prevent you from building financial capability—it’s about the right habits and mindset.

"Investing is a journey of self-discovery. It reveals your relationship with money, your tolerance for risks, and your ability to stay disciplined in the face of uncertainty." - Jeremiah Say

Achieving My Dream of Buying a Home in Tokyo at 27

Owning a home in Tokyo was a dream that seemed distant, given my financial situation. I realized I needed a higher income to achieve this goal, so I made a bold move to quit my job and looked for a career that offered better financial flexibility. This led me to discover a new career path as a recruitment consultant, which significantly increased my earning capacity. I also lived in a very affordable apartment (About 15% of my income) to maximize my savings despite living in the most expensive city. Within two years, I built enough savings to acquire a house loan, enabling me to buy my second home in Tokyo.

"The best investment you can make, is an investment in yourself. The more you learn, the more you'll earn." - Warren Buffet

Continuing My Investment Journey

People often ask if it’s better to buy a house with a bank loan or to pay outright. The answer depends on your investment goals. In Japan, house loan interest rates are very low compared to the US, making it more sustainable to pay a monthly mortgage without hindering financial growth. Personally, I chose to invest a portion of my earnings in mutual funds through Japan’s New NISA (a tax-exempt investment program) while paying my mortgage. This approach allows my investments to grow annually, leveraging compound returns, while I pay off my home. Essentially, I’m paying to own the property fully over time, similar to paying rent, but with the added benefit of building equity in my home.

As I turn 28, I’m still learning about different investment strategies. My journey may not be the same as others', but starting with nothing shouldn’t stop you from pursuing your investment goals or dreaming of homeownership.

"The biggest risk of all is not taking one." -Mellody Hobson

My story is proof that anyone, with ambition and the right mindset, can achieve financial independence. I hope my journey inspires you to start your own path toward financial literacy and investment. If I can do it, so can you.