A young woman reveals her regret after using her inheritance to buy her first home, calling it a significant mistake.
Alanna Pow, a 21-year-old from Australia, recently shared her story about using her inheritance to buy her first home.
At first, it seemed like a dream come true. She purchased a Victorian apartment for $533,000, believing it would be a great investment.
However, the reality of homeownership soon hit her hard, leading to significant financial stress.
Young woman admits she made huge mistake in buying first home by inheritance
With her inheritance, Alanna was able to make a large down payment, which helped her secure a mortgage.
She thought her annual salary of $60,000 as a flight attendant would be enough to cover her monthly mortgage payments of $3,000.
Unfortunately, she quickly learned that her income was not sufficient to meet her financial obligations.
‘I was struggling to make payments because I bought the house with my inheritance, so I had a big deposit, but it all went to the house,’ Ms Pow said.
‘My salary wasn’t cutting it to make the repayments.’
Alanna struggled to pay her bills and manage her living expenses while trying to keep up with the mortgage.
“I was worried that I would default on my loan,” she explained.
This fear of ruining her credit rating added to her stress.
She also felt ashamed about using her inheritance for a property, fearing her parents would be disappointed if they found out.
The young woman turned into OnlyFans star
As her savings dwindled, Alanna realized she needed a way to earn extra money.
She turned to OnlyFans, a platform where creators can share content and earn money from subscribers.
In her first few months on the platform, she made $14,000, which significantly eased her financial burden.
This alternative income allowed her to cover her mortgage payments more comfortably.
The harsh reality for young adults
Alanna’s experience highlights a common issue faced by many young people today.
She noted that a salary of $60,000 is not enough for most young adults to live on their own and manage a mortgage.
“You really need to earn at least $100,000 a year to feel secure,” she said.
This realization is a harsh truth for many individuals trying to establish their lives in a challenging economy.
Expert advice on homeownership
Mortgage experts have weighed in on Alanna’s situation.
They emphasize that having a large down payment does not guarantee approval for a home loan.
Lenders often look for a history of financial responsibility and budgeting skills.
Many people underestimate the costs associated with homeownership, which can lead to financial struggles.
A Cautionary Tale
The journey to homeownership can be daunting, especially for younger individuals who may not have extensive financial knowledge.
Alanna stressed the importance of being realistic about one’s financial situation before making such a significant commitment.
She now understands that it is vital to assess not only the price of the home but also the ongoing costs of living in it.
“We would always recommend that people create smart financial disciplines,’ he said.
“Without these skills they are going to struggle to manage a home loan/mortgage.
‘This is a 30 year commitment that can set you back significantly if you can’t budget and manage money and your property repossessed.”