Baby boomers have flocked to real estate auctions this weekend to bid on properties in Sydney’s eastern suburbs for their children.
Due to the high cost of Australian properties, Aussies between their 20s and 40s are turning to their parents for help to get started on buying their first home.
Craig Pontey, director of Ray White Double Bay, told news.com.au that parents help their children so that they can continue to live in close proximity to each other. He said apartments in Bondi, Bellevue Hill, Rose Bay and Vaucluse were among the favourites.
“I think it’s been going on for a while, but more so recently because there’s been such price growth in the last three or four years, it’s now starting to get out of reach for a lot of people,” said Pontey.
“Unless the parents help the children, then they’re not going to be able to live in close proximity to where they are.”
However, Oasis Property Director Gavin McPherson said that parents should let their children experience purchasing the property themselves. He points out that parents tend to become pushy and domineering, as if they are making their own purchase.
“They need to live it, understand how hard it is, experience missing out, liaising with an agent, all those things. You only really appreciate what you’ve worked for,” said McPherson.
New mortgage products are starting to be introduced to the market to help people buy their first investment. Among these are family pledge loans, which employs a different process than usual loans to help borrowers pay off the deposit while avoiding mortgage insurance.
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