Real Estate
More young homebuyers are getting financial help than one may think. Picture: Monique Harmer
Nearly a third of Aussies receive financial support from their parents or grandparents to purchase a home.
A Compare the Market survey revealed 29 per cent of participants were given some form of financial help from their family to buy a property, with 58 per cent of saying they wouldn’t have been able to purchase a house without the assistance.
Just 26 per cent of respondents believe they’ll be able to buy an abode without any help from their parents or grandparents.
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Compare the Market money general manager Stephen Zeller said Australians were less likely to get financial help from their family than in other nations.
“It’s a sign of the times that a sizeable portion of homeowners would not be homeowners if it weren’t for help from parents, or the grandparents,” Mr Zeller said.
“But the Aussie bank of mum and dad itself is also struggling.
“Our survey shows 36 per cent of Canadians and 37 per cent of Americans had help buying a house compared to Australia’s 29 per cent.”
Nearly a third of Aussies are getting financial support from their parents or grandparents to buy a home. Picture: Monique Harmer
He added that there was a deeper conversation that needed to be had about how older generations could help the young when it came to money, finances and wealth — and whether or not they should be.
“With housing becoming further out of reach for younger generations, it’s a discussion we expect will become more prominent without major changes to the affordability situation,” he said.
Ms Bakos said family help to buy a home was more common than one would think.
Prominent buyer’s advocate Cate Bakos said parents or grandparents gifting money to younger family members to buy a home was more common than people thought, it just wasn’t talked about.
“I’ve also had siblings helping each other out,” Ms Bakos said.
“It’s not uncommon and it can be people on reasonably good professional salaries but the parents gifting them their inheritance,” Ms Bakos said.
“We’re seeing these days heaps of situations where parents either gift the deposit or give them a significant amount of cash once they’ve saved a deposit.”
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sarah.petty@news.com.au
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