Young Aussie calls out older generations as she reveals humiliating home buying experience: ‘Tell me what I could have done better’

A young Australian is warning first-time homebuyers that her HECS student debt almost cost her the chance to buy her dream apartment.

Kristie McConnell, 26, spoke of the humiliating experience she faced when she tried to buy a one-bedroom apartment in Southport, Queensland, for $365,000 in February.

Ms McConnell, who earns $80,000 a year, had saved up to enter the property market when she was 21.

Because she had no experience buying real estate, Ms. McConnell sought the advice of a real estate agent and a lawyer.

The 26-year-old explained that she was honest about the fact that she owed $60,000 in HEC debt for her international business and finance degree.

Initially, Ms McConnell was told by the estate agent that she needed a $27,000 deposit for the unit, but this rose to $38,000 after she took her HECS student debt into account.

But when she went to sign the contract, the bank unexpectedly asked for a $48,000 deposit.

“He (the agent) went to the actual bank and got confirmation from them the day I signed the contract, basically saying, oh, the bank won’t give you that much,” she told News.com. ouch .

Ms McConnell was told this was due to the apartment complex’s $70 per week operating costs and her student debt.

Fortunately, her parents provided her with the necessary money to cover the shortfall for the purchase of the apartment.

The ordeal left Ms McConnell disillusioned with the challenges young Australians face in trying to get ahead.

“You’re doing all the right things – you’re going to college, you’re getting a good job, you’re going to buy a house – but you’re still in the background,” she said. “We immediately start our adult lives in debt, and then there’s the cost of living and rents.

‘Young people are throwing money away on rent because they cannot afford to enter the real estate market. I would like someone from an older generation to tell me what I could have done better.’

Mrs. McConnell called her real estate agent and attorney for leaving her blindsided during the home-buying process.

Her final deposit totaled $53,000, including broker and attorney fees and a “hidden” conveyancing fee.

She said they did not inform her of the $2,000 transfer fee despite asking about the additional fees several times.

‘I have a broker who handles matters with the bank for me. I have a lawyer who does all the legal stuff for me,” she said in a video on social media.

“I’m trying to do the right thing, ask all the questions and be as prepared as possible, and it feels like every step of the way someone turns around and kicks me.

‘I suddenly didn’t have enough money to buy this apartment. I signed a contract saying I’m going to buy it because there are additional costs that no one told me about.

“Every time something else comes up I feel like an idiot because I’m in so much trouble right now. I feel like a little kid playing an adult game.”

Ms McConnell added that she was “lucky” to have a supportive partner who was willing to help and gave her the extra money so she could buy the apartment.

Ms McConnell was initially told her bail would be $27,000, but this was increased due to her HECS debt. The total of her last deposit was $53,000, including attorney and broker fees and a “hidden” transfer fee she knew nothing about

Ms McConnell said she felt ‘like a child playing an adult game’ after being hit with fees, despite asking her agent and lawyer about additional costs

Ms McConnell warned other first home buyers to ‘beware’ as the process was ‘without a doubt the worst experience’ of her life.

Social media users sympathized with the frustrated Australian, with many claiming they had a similar experience buying their first property.

“I also just bought a condo and was told I needed an additional $12,000 ($91,000!) ONE HOUR before my financial approval was due,” one person wrote.

‘I settled and was given a special levy of 61,000 to be paid within 13 days. The levy was collected after I signed the contract and was only notified after settlement,” said another.

‘I have exactly this problem now too. It’s so hard to get a straight answer on how much my deposit should be,” said a third.

A fourth added: ‘I had enough for my deposit and stamp duty but not the million other fees no one tells you about.

“It was the most financially stressful three months after buying a house.”