Now more than ever, children are finding it harder to get themselves into the property market. The dream of being a homeowner is now taking longer. As kids used to leave home in their early 20’s and venture out on their own, nowadays kids in their late 20’s to early 30’s are still living at home with their parents or returning back home to save money.
Slow wages growth coupled with rapidly growing property prices is now making home ownership harder than ever.
Managing Director for Aurora Estate Agents, Andrew Nguyen, said “We really are seeing many first home buyers finding it tough to purchase their dream home.
Even if a range of stamp duty concessions, grants and low interest rates, this is still not enough,” he said.
Many parents are now considering buying investment properties to pass on to their children in the future. This is a great wealth strategy, which could benefit family members over the long term as house prices keep going up.
Downsizing is another way in which you can certainly help your children in the near future. Whilst your children are still living at home, it’s a good idea to re-evaluate your finances and start to seriously think of downsizing. That way, you could utilise some of the capital from downsizing and help your children get their foot through the door with a deposit. In the end, this will help you a lot earlier and put you in a better and more stable position and your children may be able to get into the property market.
Another possible scenario is to allow the bank to use your property as a security against your children’s home loan. You could provide a family guarantee, which would benefit them in getting accepted for a home loan.
No matter which way you help out or what guidance you choose to give to your children, always remember to seek advice from a financial advisor. Someone who has professional experience and a lot of knowledge in this particular field. A financial advisor helps you be aware of potential implications that could come from certain things. In the end, you want a healthy financial life which is definitely possible with some expert advice.
Aurora Estate Agents
Aurora Estate Agents are a new breed of real estate professionals which are highly focused on their core values: integrity, accountability, transparency, client focussed and process driven. Aurora Estate Agents’ dynamic team is a collaboration of effective marketers, residential sales agents and residential leasing consultants.
South East Melbourne, which includes Berwick, Narre Warren, Beaconsfield, Clyde North, and Cranbourne is the country’s property boom hotspot. Aurora Estate Agents is perfectly positioned with a broad spectrum of property expertise to provide the best advice and skills for homeowners, investors and developers to ensure they continue to maximise growth and take advantage of existing market conditions.
Article by Andrew Nguyen
