Share this @internewscast.com

Young Australians are increasingly drawing on the ‘bank of mum and dad’ to get a foot on the property ladder as house prices continue to grow.
But new data suggests parental loans are losing their conditions, almost entirely.
Parents who contributed to their child’s home loan deposit gave on average $74,040, according to financial comparison site Mozo who surveyed 1,019 Australian parents aged 18 or over. However, the number of respondents in this sample who had provided this support was unclear.

As reported by Mozo, this figure was $4,113 higher compared to 2021. Additionally, 75 percent of parents who had contributed to a deposit did not anticipate being reimbursed, an increase from 33 percent during the same timeframe.

While it’s not atypical for parents to offer a financial lifeline, rising house prices are forcing them to dig deeper into their pockets.
National home prices hit a new peak in April, rising 0.2 per cent to reach $805,000, according to property research firm PropTrack’s latest Home Price Index. Home prices in Sydney, Brisbane, Adelaide, Perth and Darwin were all at record highs.
More than half the respondents in Mozo’s reported dipping into savings to provide financial aid.
And about 19 per cent reported cutting back on expenses to help fund their child’s home ownership aspirations.
“We’re seeing some parents delay retirement, dip into savings, or even rely on credit cards and loans to support their children,” said Rachel Wastell, Mozo’s personal finance expert.

“Before offering that helping hand, it’s crucial to make sure you’re not relying on high interest debt and that your own financial future is secure.”

Other research has suggested parents who provide funds for their child’s home loan deposit typically give $100,000 or more.
Investment manager UBS surveyed 1,000 Australian adults in December, asking whether they had received or given money to family members in the past 12 months. Almost 40 percent said yes, and of those, 25 percent reported the money was used for purchasing residential property.
Some 60 per cent of givers said they had transferred $100,000 or more to a family member to support their purchase. Although 80 per cent of those who received money for this purpose said they had been given less than $100,000.
Richard Schellbach, equity strategist at UBS, told The Australian’s The Money Puzzle podcast in January that it was no surprise the bank of mum and dad existed, but said the survey showed “the magnitude and prevalence is possibly stronger than many would have suspected”.

 For the latest from SBS News, and .
Share this @internewscast.com
You May Also Like

“UN Climate Chief Urges Australia to Seize the Opportunity”

The United Nations’ climate chief has challenged Australia to take more ambitious…
Stargazers have the chance to see a spectacular meteor show this week.

Guide to Viewing the Southern Delta Aquariids Meteor Shower This Week

Stargazers have the chance to see a spectacular meteor show this week.…

EU and US Reach Tariff Agreement to Prevent Escalating Trade Conflict

The United States reached a trade framework agreement with the European Union…
A controversial new fee for the Sydney New Year's Eve fireworks is being debated.

Sydney Council Discusses Admission Fee for New Year’s Eve Fireworks Event

A controversial new fee for the Sydney New Year’s Eve fireworks is…

Israel Implements Daily Ceasefires in Gaza for Aid Deliveries via Airdrops

Israel announced a halt in military operations for 10 hours a day…
US mother and 8-month-old daughter remain missing after 10 days

U.S. Mother and Her 8-Month-Old Baby Still Missing After 10 Days

Authorities and concerned relatives in California are actively searching for a mother…
An investigation is under way into the shooting, which saw Troy Jacka killed outside a home on Stebonheath Road in Munno Para West.

Father’s Fatal Shooting Leaves Daughter Grieving

Exclusive: The daughter of a man who lost his life in a…

For the First Time: Two Major Israeli NGOs Accuse Israel of ‘Genocide’ in Gaza

Rights groups B’Tselem and Physicians for Human Rights Israel said overnight they…
Gunman believed dead after police officer, civilians shot in Manhattan

Manhattan Shooting: Suspected Gunman Killed, Police Officer and Civilians Injured

A gunman is suspected to have died after opening fire on a…
Palestine Action Group Sydney march from Hyde Park North (near the Archibald Fountain) to Belmore Park.  29th October 2023 Photo: Steven Siewert

Pro-Palestine Rally on Sydney Harbour Bridge Cancelled

A plan to shut down the Sydney Harbour Bridge for a weekend…
Matt Wright has pleaded not guilty before standing trial for perverting the course of justice.

“Outback Wrangler Denies Guilt in Helicopter Crash Case”

Three years after a fatal chopper crash, Matt Wright has pleaded not…

Trump Claims Severe Hunger Exists in Gaza, Opposing Netanyahu’s Statements

US President Donald Trump has commented on the severe hunger situation in…