Many first home buyers in Melbourne are still relying on their parents to get into the property ladder. New research has found that more than a third of parents in Victoria provide up to $50,000 in assistance to their children.
Data from Mozo.com.au revealed that 37 percent of parents helped provide deposit or acted as a guarantor on a home loan while their children continue to live with them. An estimated 60 percent have given assistance up to $50,000.
Property values in Melbourne have returned to their same record high levels in September 2017. Based on the February Hedonic Home Value Index of Corelogic, house prices have surged up to 10.7 percent in the past 12 months. The median price was pegged at $689,088.
Real estate experts said that although young buyers were able to get home loans, many still feel being outpaced in the market. As such, parental support remains very important to help them get started in the property market.
The Mozo.com.au report added that more than half of Victorian parents are using their savings to help their kids. Some 10 percent have decided to delay their retirement while 28 percent are cutting back on their expenses.
More parents are willing to help their kids get on the property ladder. Acting as a guarantor was the common way to help. The others provide financial gift in the form of a deposit.
Many mums and dads are also selling the big family homes and downsizing while the others have opted to gift some of money to their children instead of giving it at a later time in the form of an inheritance.
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By Wendy Chamberlain
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With a passion for all things real estate spanning over 20 years, Wendy loves that her role as a Buyers Agent and Sellers Advocate gives her buying and selling clients an experienced voice they can trust when it comes to negotiating to buy or sell something as important as their home or investment. Wendy considers it a privilege to be asked to help others realise such an important goal as home ownership and to be trusted with that honour. Get in touch today via www.wendychamberlain.com.au for a no obligation chat about how Wendy can work with you and help you save time and money to secure your new home sooner.