‘Low point’: Tenant’s desperate bid when he knew he couldn’t afford his mortgage

Callum James was earning $80,000 a year when he was forced to take drastic measures just to pay his mortgage.

James, 26, lives in Perth.

In 2020, when he was working at JB Hi-Fi and earning between $70,000 and $80,000, he was able to buy his own house.

At first, his repayments were manageable and he was paying $1,300 a month on his mortgage, but in July of last year, his fixed rate ended and overnight, his payments jumped to $2,400.

James said it was a “harsh” reality to face when he received the letter informing him he would need to come up with an extra $1,000 each month.

When his flat rate ran out, James had quit working at JB Hi-Fi and gone on to work in real estate, earning $80,000.

He said his salary was a “good salary” when he bought his house in 2020, but by 2024, it had become insufficient.

He said an $80,000 salary now “makes it difficult for people” and that after paying for food, gas and rent or a mortgage, there isn’t much left.

“The food has gone up, the bills have gone up, even with $100,000 you’re still trying to get by,” he said.


Initially, his salary was good when he bought his house in Perth in 2020, but by 2024, it had become insufficient. Callxmjames/ Instagram

The 26-year-old said he could “survive” with it, but he couldn’t get ahead and once his mortgage went up, things got so bleak that he started selling things to make his minimum payments.

“I sold my Xbox and iPad one month just to pay my mortgage,” he told news.com.au.

James said it was one of the “lowest points” of his life and felt “tough” that he had to start selling things just to keep his house.

According to financial comparison website Finder, more than one in three homeowners struggled to pay their home loan in December.

About 16 percent of mortgage holders have missed at least one mortgage payment in the past six months and almost one in three are worried about missing their home loan repayments.


Photo by Callum James
James said an $80,000 salary now “makes it difficult for people,” while also adding, “Food has gone up, bills have gone up, even on $100,000 you’re still trying to get by.” Callxmjames/ Instagram

Financial expert Richard Whitten said many homeowners are struggling with financial strain.

“We haven’t had a rate cut in four years, and everything else in life has become more expensive. With inflation now close to the target, many Australians are hoping a cut is coming soon. But that’s far from the case. sure,” he said.

“With emergency funds depleted and the RBA yet to signal significant interest rate cuts, many homeowners fear for their financial security.”

Working in real estate also made the salary reality more bleak. People who a few years ago would have easily been able to buy a house are struggling to afford one-bedroom apartments.

$80,000 a few years ago was a good salary. These days you don’t have enough to consider (purchase); if you put a deposit together, you hamper your borrowing capacity, he explained.

“Someone would come to me and say they make $100,000, but they could only borrow $480,000.”

On paper, a six-figure salary looks pretty impressive, but even in Perth, the average house price has risen to $1 million, so if you want to get into the property market, you don’t always get it down without a deposit. great.

James said $80,000 used to be enough to “buy a house,” but by 2024 he had to change jobs because he needed to make more money.

In the end, James switched careers and now works exclusively in sales because the commission allows him to earn more money, which has been a huge financial relief.

“Sales is one of those things where you’re not tied to an hourly rate,” he explained.

He also noted that a few years ago, most of his friends worked in Perth, but as “rates started to go up”, all his friends started flying and working overseas because they couldn’t. “survive” on regular wages.

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Image Source : nypost.com

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