A young woman who used her inheritance to buy her first home claimed it was a mistake because it put her under mortgage stress.
Alanna Pow, 21, bought the property for $533,000 before struggling to pay the $3,000-a-month mortgage (or about $700 a week) because her salary was too low.
Ms Pow was working as a flight attendant at the time and only earned about $60,000 a year.
she said news.com.au The five-figure salary was too low to pay the mortgage and comfortably meet other expenses..
“I was struggling to make the payments because I bought the house with my inheritance, so I had a big deposit, but it all went into the house,” Mrs Pow said.
“My salary was not enough to make the payments.”
The young Australian said her mortgage made her anxious and she soon worried she would not be able to pay her loan and would have to sell her apartment.
Ms Pow said she was also worried her parents would discover she used their entire inheritance on the property.
Alanna Pow, 21, (pictured) bought a $533,000 property after receiving an inheritance, but struggled with mortgage payments despite her large deposit.
Ms Pow said a $60,000 salary can no longer “get anyone very far”, even if a person is lucky enough to have help from their family.
The 21-year-old said getting a home loan is “easier” with a partner because you can combine your money, but “really difficult for young singles.”
Ms Pow says Australians need to earn at least six figures a year to avoid financial strain.
‘You need at least $100,000 a year to live comfortably. I don’t know how any of my friends can live on one salary. It’s crazy. “It’s a tough world out there,” he said.
After the first home buyer realized her “bank account was at its lowest,” Ms Pow knew she needed to find a way to earn cash.
The 21-year-old decided to open an Onlyfans account and raised $14,000 in the first few months.
Now you can earn your old airline salary in just one month.
Pow said it changed his life, not only because it relieved his financial pressures, but because it allowed him to stop worrying about everything but taxes.
Mortgage expert Mansour Soltani said just because mom and pop’s bank helps with a deposit doesn’t mean a borrower can afford the payments, or even qualify for a mortgage loan (pictured, stock of a sold apartment).
money.com.au mortgage expert and Soren Financial Director Mansour Soltani told Daily Mail Australia that a windfall or help from a parent does not automatically mean a borrower can handle a home loan.
“We would always recommend that people create smart financial disciplines,” he said.
‘Without these skills they will have difficulty managing a home loan or mortgage.
“This is a 30-year commitment that can be a big setback if you can’t budget and manage the money and get your property back.”
The mortgage expert said many people are surprised when they discover that receiving financial help does not automatically qualify them for a mortgage loan.
“I recently had a client whose parents gave her $400,000 to buy an $800,000 apartment,” he said.
‘The bank still did not lend him the money even though he could technically repay the loan.
“This was because his spending habits on his account statements showed that he was living paycheck to paycheck and unable to save money.”
The mortgage expert said Australians who want to get a loan should present themselves as someone who has “money management skills” and can “always save and pay bills without help”, whether they receive cash or not.