A young Aussie is warning first-time home buyers that her HECS student debt almost cost her the chance to buy her dream apartment.
Kristie McConnell, 26, spoke out about the humiliating experience she faced while attempting to purchase a one-bedroom apartment in Southport, Queensland, for $365,000 in February.
Ms McConnell, who earns $80,000 a year, had been saving she was 21 to enter the property market.
With no experience in buying property, Ms McConnell sought the advice of a broker and a solicitor.
The 26-year-old explained that she was honest about having a $60,000 HECs debt for her international business and finance degree.
Initially, Ms McConnell was told by the broker she needed a $27,000 deposit for the unit but this increased to $38,000 after factoring in her student debt.
Kristie McConnell (pictured) is warning first-time home buyers that her HECs debt almost cost her the chance to buy her dream apartment.
But when she went to sign the contract, the bank unexpectedly asked for a $48,000 deposit.
‘He [the broker] went to the actual bank and got confirmation from them on the day that I signed the contract, basically saying, “oh, uh, the bank won’t give you that much”,’ she told news.com.au.
Ms McConnell was told this was due to the apartment complex’s $70 a week body corporate fees and her student debt.
Fortunately, her parents provided her with the necessary funds to cover the shortfall needed for buying the apartment.
The ordeal left Ms McConnell feeling disillusioned with the challenges young ns face trying to get ahead.
‘You do all the right things — you go to university, get a good job, go get a property — but you are still on the back foot,’ she said. ‘
We immediately start our adult lives in debt, and then there is the cost of living and rental prices.
‘Young people are throwing money away on rent because they can’t afford to enter the property market. I’d love someone from an older generation tell me what I could have done better.’
Ms McConnell called out her broker and solicitor for leaving her blindsided during the homebuying process.
Ms McConnell was initially told her deposit would be $27,000 but was increased due to her HECS debt. Her final deposit total came to $53,000 – which included solicitor and broker fees and a ‘hidden’ title transfer fee she knew nothing about
Her final deposit came to a total of $53,000, which included broker and solicitor fees and a ‘hidden’ title transfer fee.
She said they failed to let her know about a $2,000 title transfer fee despite asking multiple times about additional costs.
‘I have a broker who deals with the bank for me. I have a solicitor who is doing all of the legal stuff for me,’ she said in a video posted to social media.
‘I am trying to do the right thing and ask all the questions and be as prepared as possible and it feels like every step of the way somebody is turning around and is kicking me.
‘I suddenly did not have enough money to buy this apartment that I have signed a contract saying that I am going to buy because there’s additional fees that nobody f***ing told me about.
‘I feel like an idiot every time something else comes up cause I am so in over my head right now. I feel like a little kid playing an adult’s game.’
Ms McConnell added she was very ‘lucky’ to have a supportive partner who was willing to help and gave her the extra money so that she could buy the apartment.
Ms McConnell said she ‘felt like a kid playing an adult’s game’ after being hit with fees despite asking her broker and solicitor about additional costs
Ms McConnell warned other first-home buyers to be aware as the process was ‘hands down the worst experience’ of her life.
Social media users sympathised with the frustrated woman, with many claiming they had a similar experience when buying their first property.
‘I also just purchased an apartment and was told I’d need an extra $12k ($91k!) ONE HOUR before my finance approval was due,’ one person wrote.
‘I settled and was hit with a special levy of 61k due in 13 days. The levy was struck after I had signed the contract and was never notified until after settlement,’ another commented.
‘I’m having this exact problem right now as well. It’s so hard to get a straight answer about how much my deposit needs to be,’ a third chimed.
A fourth added: ‘I had enough for my deposit and stamp duty but not for the million of other fees no one tells you about.
‘It was the most financially stressful three months after buying a house.’
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