Parents looking to help their Generation Y children climb the property ladder are being advised to consider selling the family home and moving to a land lease community to free up equity that can be passed onto adult kids.
Investment advice in one of the major newspapers this week cited Ingenia and other land lease communities as an option for ageing parents keen to give their kids a financial boost.
Recent analysis by researcher Digital Finance Analytics (DFA) shows that the ‘Bank of Mum and Dad’ is now the country’s 9th largest mortgage lender after Suncorp, with $34 billion in loans.
The research found parents contribute an average of over $89,000 – an increase of 20% in the last year – to help their children buy a home. 60% of the first home buyers they surveyed in the March quarter had accepted financial help from their parents.
Mortgage brokers also report that parents are increasingly using the equity in their homes to top up house deposits for their offspring.