Alanna Pow’s dream of homeownership came true at just 21, thanks to a generous inheritance that allowed her to buy her first property in Victoria with a deposit of $36,155.41. However, despite the financial head start, she soon found herself overwhelmed by the economic burden of her mortgage.
According to research from financial comparison site Finder, one in 10 Australians have received financial assistance from their parents to help with a home deposit. Those who did receive help were given an average of $36,155.41.
Despite the economic advantage, Pow struggled to keep up with her monthly repayments of $1,928.94, more than $450 weekly. Her full-time flight attendant salary, around $38,578.80 annually, wasn’t enough to cover the costs.
“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,” Pow said. “My salary wasn’t cutting it to make the repayments.” The stress of the situation made her incredibly anxious, fearing that she would default on the mortgage and lose her apartment.
Even with the benefit of family support, Pow said that a salary of $38,578.80 doesn’t stretch far enough to support a single person in today’s economy. “I was fortunate to have an inheritance, but I still had to work my flight attendant job and a retail job to be able to get a loan,” she explained. “It’s easier if you have a partner and combine your salaries, but it’s hard for young single people.”
Pow argues that young people need a six-figure salary to avoid financial stress. “You need at least $64,298 (100,000 AUD) a year to live comfortably,” she said, noting that many of her friends struggle with single wages.
Eventually, Pow’s situation became dire, and her bank account was at its lowest. In search of extra income, she turned to OnlyFans, where, in her first few months, she earned $9,001.72. She says she can make her flight attendant salary in just one month.
“I knew my bills would be paid, and I could buy whatever I wanted and pay my body corporate. I didn’t have to worry anymore. I could shout my friends,” she shared, adding, “The only thing I worry about now is tax.”
Finder’s Head of Consumer Research, Graham Cooke, commented on the growing trend of parental support in the Australian property market. “Parental support can significantly lower the initial hurdle of saving up for a house deposit, allowing quicker entry into the market, smaller loans, and a higher chance of loan approval,” Cooke said.
However, Cooke cautioned that while parental help may ease the path to homeownership, it doesn’t guarantee long-term financial stability. “Trying to service a mortgage now is tough.
Borrowers who qualify for a home loan with help from their parents might struggle to make repayments on their own, significantly if interest rates rise again,” he explained. “It’s important to remember that homeownership isn’t the only path to financial security.”
Cooke also encouraged prospective buyers to focus on budgeting, increasing their income, and exploring government first-homebuyer schemes to help them navigate the financial pressures of the housing market.
