My House Is Worth Less Than I Paid. What Should I Do?

Buying your first home is one of the biggest financial decisions you'll ever make. So, when headlines start warning about falling house prices, negative equity, and first-home buyers being "trapped", it's completely understandable to feel anxious.

But does negative equity automatically mean financial disaster?

In this episode of Start Here, Canna explains exactly what negative equity is, why it's suddenly making headlines, who is most at risk, and—most importantly—the practical steps you can take to protect yourself and your financial future.

Whether you've recently purchased your first home, bought with a 5% deposit, or you're a parent worried about your adult child, this episode will help you separate fear from fact and focus on what you can actually control.

In this episode we cover:

• What negative equity actually means (and why it isn't always a financial emergency)

• Why first-home buyers with small deposits are more exposed to falling property prices

• Why property markets naturally move in cycles

• When negative equity becomes a genuine problem—and when it doesn't

• Why selling too early can lock in financial losses

• How making extra mortgage repayments can rebuild equity faster

• Practical ways to improve your cash flow and pay down your home loan sooner

• When renovating can help increase your property's value—and how to avoid overcapitalising

• Why obtaining an independent property valuation may surprise you

• When to speak with your lender or mortgage broker if you're feeling financial pressure

• Could renting out your home instead of selling be a smarter long-term strategy?

• The biggest mistakes homeowners make when property prices fall

• Why staying calm during market downturns is often one of the best financial decisions you can make

Key Takeaway

Negative equity doesn't automatically mean you've made a bad financial decision. If you can comfortably afford your mortgage repayments and aren't forced to sell, time, consistent mortgage repayments and sensible financial decisions can help rebuild your equity. While you can't control the property market, you can absolutely control your cash flow, your mortgage strategy and the financial habits that strengthen your long-term wealth.

If you enjoyed this episode, please subscribe, leave a review, and share it with someone who has recently bought their first home or is worried about the property market.

Please note: This podcast contains general information only and does not take into account your personal objectives, financial situation or needs. Before making financial decisions, consider seeking advice from a qualified financial adviser, accountant or mortgage professional

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📚 My Books

If you’re ready to deepen your financial knowledge, check out my books:

• Best Seller:The $1000 Project
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⚖️ General Advice Warning

While we discuss financial topics, everything shared here is general information only — never personal, product, or investment advice. Always:

• Do your own research.
• Weigh up the pros, cons, fees, caps, taxes, and risks.
• Seek professional advice before making financial decisions.

📜 Financial Planning License Details

The information in this podcast does not take into account your personal circumstances, goals, or needs. Always read relevant Product Disclosure Statements before acquiring any financial product, and seek independent financial advice where appropriate.

Canna Campbell is an Authorised Representative and Financial Adviser of Links Licensee Services Pty Ltd (AFSL No. 700012 | ABN 97 678 975 589).