Ivan and Natalie Orola’s two young boys will be among the lucky ones.
At a time when owning a home has never been more unaffordable, some might fear for the futures of Saxon, 4, and Xavier, 6, but their parents are making sure they won’t have to worry.
Natalie and Ivan Orola with their children, Saxon, 4, and Xavier, 6, in their Clayfield home. The young family are putting away money now to gift to their children early so they can afford to buy a house in the future. Photo: Lyndon Mechielsen.
The Orolas have decided they will gift their children early inheritances in the form of property to help them get into the housing market when the time comes.
“One of our biggest values as a family is legacy, so everything for us financially stems from that,” Mrs Orola said. “It’s not about material wants, it’s about providing for future generations to come.
“Our plan will be to ideally have them both set up with a property each. We’ll have to nut out an age, but it will probably when they decide they want to be independent and move out of the family home.”
Natalie and Ivan Orola with their children Saxon, 4, and Xavier, 6, in their Clayfield home, Brisbane. Picture: Lyndon Mechielsen.
Both lawyers, the couple secured their Clayfield home without financial help from their families, but they realise it won’t be so easy for their children given how much wages are failing to keep up with the rising cost of living and housing.
“We’ve set up a property portfolio that allows them each to take advantage of something residential that they can either move into or rent out,” Mrs Orola said.
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“I don’t want them to stress about how they’re going to get into the market. We want to give them a leg up. Why else are we working this hard?”
It comes as new research reveals the suburbs where large amounts of intergenerational wealth are set to change hands, with residents in some Brisbane locations set to receive inheritances of up to $1m this year alone.
The analysis from Foundit shows the typical per-child inheritance in Clayfield is approximately $689,000. That figure jumps to $1m per child in the neighbouring suburb of Ascot.
Brisbane buyer’s agent Wendy Russell said it was extremely common for her to have clients in their 40s buying property purely for their children or gifting early inheritances.
“I get this all the time,” Ms Russell said. “Professional couples buying investment properties with a view to secure it now... specifically for their children to inherit because they know their kids won’t be in a position to buy when they’re ready to buy.”
Buyers agent Wendy Russell.
Ms Russell said they were typically looking for properties in good school catchments or close to the city with strong capital growth potential.
“These are high income earners who have the capacity to do this and the foresight to say; “I can see what the market is doing here. lt’s time get in now for the kids.”
Ms Russell said there were two distinct younger buyer groups emerging in the market — those with money and those without.
“I feel for those who can’t rely on inheritance,” she said.
Millennial Wealth director Rob Creaton said a large number of his clients were gifting their children large amounts of money as early inheritance in their 20s — usually $50,000 to $100,000 — or agreeing to use their properties as security for their children to be able to get a mortgage.
“In the last two to three years, it’s been one of the biggest topics of conversation,” Mr Creaton said.
“I even have a lot of clients with kids who are only three, four, five or six already thinking about putting money away for them so when they’re 20, 25, they can afford to buy.
“They’re really worried their kids will never be able to buy property.”
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