Australian parents will have to shell out increasingly large sums of money to help their children buy homes or risk them never making it onto the property ladder.
In decades past, buying a home was a relatively solitary thing, a goal set and achieved either as a single person or as part of a couple, but now buying a home has increasingly become an affair involving parents and other relatives.
According to investment and advisory group Jarden Australia, 15 per cent of borrowers are receiving an average of $92,000 from parents.
“If we assume the majority are first-home buyers, it would imply about 75 per cent of first-home buyers were receiving some form of family assistance,” said Jarden Australia chief economist Carlos Cacho.
It’s a huge jump from the $23,500 average data from research firm Digital Finance Analytics (DFA) cited back in 2010, when an average of six per cent of first home buyers sought help from the Bank of Mum and Dad.
A glimpse into our future
A recent report from the UK may provide some clues on where achieving home ownership is going in Australia.
According to data from the Legal & General Group, relatives were expected to support 318,...
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