A young woman who used her inheritance to buy her first home now admits it was a big mistake, forcing her to turn to OnlyFans to end her severe mortgage stress.
Alanna Pow, 21, bought the $533,000 Victorian apartment after inhering some money but found it difficult to meet the $3,000-a-month mortgage repayments when she was only earning $60,000-a-year as a flight attendant.
She told news.com.au the salary was simply too low for her to pay off the mortgage and comfortably afford other expenses.
‘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.’
She soon came to fear that she would default on her loan, ruining her credit rating in the process, and have to sell her apartment.
Ms Pow said she was also worried her parents would discover that she had used all of her inheritance on the property.
Alanna Pow, 21, (pictured) purchased a $533,000 property after receiving an inheritance but struggled with the mortgage repayments despite her large deposit
Ms Pow claimed that a $60,000 salary can’t ‘get anyone very far anymore’ – even if a person is lucky enough to be helped by their family.
The 21-year-old said affording a home loan is ‘really hard for young single people’.
‘You need at least $100,000 a year to live comfortably. I don’t know how any of my friends can live off one wage. It’s crazy. It’s a tough world out there,’ she said.
As she quickly drained her bank account, Ms Pow knew she needed to figure out a way to earn cash.
The 21-year-old decided to open an OnlyFans account and she raked in $14,000 within the first few months.
Now she earn more than her old hostess annual salary in just one month.
Ms Pow said it changed her life – not just because it eased her financial pressures, but because it allowed her to stop worrying about everything except tax.
Mortgage expert Mansour Soltani said just because the bank of mum and dad helps with a deposit doesn’t mean a borrower can service the repayments – or even qualify for a home loan (pictured stock of a sold apartment)
Money.com.au mortgage expert and Soren Financial director Mansour Soltani told Daily Mail Australia a windfall or help from a parent does not mean a borrower can handle a home loan.
‘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.’
The mortgage expert said many people are shocked when they get turned down for a home loan even if they have a sizeable deposit, as they do not have a track record of financial discipline.
‘I recently had a client who was gifted $400,000 by her parents to purchase an $800,000 apartment,’ he said.
‘The bank still would not lend her the money even though she could service the loan technically.
‘This was because her spending habits on her statements showed that she was living paycheck to paycheck and could not save money.’
The mortgage expert said Aussies wanting to get a loan have to present themselves as someone who has ‘money management skills’ and who can ‘always save and pay bills without assistance’ – whether they receive a cash handout or not.
