General Zer descends into mortgage hell after using the entire inheritance towards her first home

Alanna Pow was able to buy her first property thanks to a generous inheritance, but she still ended up in mortgage hell.

Financial comparison website Finder has found that one in 10 Australians surveyed received financial help from their parents for a deposit on their first home.

Those who received financial aid were awarded an average of $36,155.41 for their deposit.

The research also found that one in 10 first-time homebuyers asked their parents for help but were turned down, while a similar number, 9 per cent, had their parents guarantee their loan.

Pow, 21, bought her first property in Victoria for $36,155.41 with an inheritance she was given. It was a huge advantage, but her mortgage payments were hard to keep up with.

She paid $1,928.94 a month, over $450.09 a week.

At the time, she was working full-time as a flight attendant, but her salary, which was about $38,578.80, was not enough to easily service her mortgage.

“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,” she told news.com.au.

“My salary wasn’t cutting it to make the payments.”

Pow said the whole thing made him extremely worried.

She was in over her head and constantly worried that she would default on her mortgage and eventually lose her apartment.

“I used to worry that my parents would look at my bank account and see that I had spent all my inheritance,” she said.

“I was scared about it. I was also worried that I would have to sell my apartment.”

Pow said $38,578.80 isn’t a salary that can get someone very far, even with help from family.

“I was really lucky to have an inheritance, but I still had to work my flight attendant job and a retail job so I could get a loan,” she said.

“It’s easier if you have a partner and you combine the wages, but it’s really hard for single young people.”

The 21-year-old argued that people need to earn at least six figures by 2024 to live without financial stress.

“You need at least $64,298 (AUD$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,” she said.

Eventually, things got so bad that “Pow’s bank account was at rock bottom” and she realized she needed a new way to make money.

That’s when she decided to create an OnlyFans account.

Pow said that in the first few months, she earned $9,001.72 and, these days, she can earn her annual flight attendant salary in a month.

Making that kind of money hasn’t just been a financial relief for Pow, it’s also changed her entire life.

“I knew my bills would be paid and I could buy whatever I wanted and pay off my body corporate. I didn’t have to worry anymore. I can yell at my friends,” she said.

“The only thing I worry about now is the tax.”

Finder head of consumer research Graham Cooke told news.com.au that helping parents buy a home has become a growing trend in Australia.

“Parental support can significantly lower the initial hurdle of saving for a home deposit, allowing for quicker entry into the market, smaller loans and a higher chance of loan approval,” he said.

“Interestingly, one in three homeowners have had some form of parental assistance – financial, guaranty or other forms of assistance. Those born to parents who have never owned a home are at a significant disadvantage.”

Cooke warned that when parents help their children enter the property market, it’s not always perfect.

Deposit help can get people on the property ladder, but trying to service a mortgage now is difficult.

“Borrowers who qualify for a home loan with the help of their parents may struggle to make the payments themselves, especially if interest rates were to rise again,” he said.

“With the increase in property prices, the demand for deposits also increases. This means that without the help of parents, it will take much longer to collect a deposit.

“You’re also competing with buyers who might have a bigger deposit thanks to help from mum and dad.

“It’s important to remember that home ownership is not the only path to financial security. The best thing you can do as a potential buyer is to focus on budgeting, maximizing your income and exploring government schemes for first home buyers.”