Gen Yers turning to the “Bank of Mum and Dad” to make home ownership dreams a reality
The first of a series of reports entitled Future Leaders Index 2015 has found that prohibitive property prices in Australia are causing more Gen Yers to turn to the “Bank of Mum and Dad” to fund their property dreams.
Of those 18-29 year olds surveyed, 38% of those who managed to buy a home, did so with financial help or a guarantor, while 28% of those with an investment property received help.
The report, compiled by accountancy firm BDO and The Co-op, is the first of a series of White Papers to be launched in 2015 that brings to light the current spending, saving and debt habits of Gen Y in Australia.
Director of the City Futures Research Centre, Professor Bill Randolf told Domain.com.au that Gen Y’s perceptions about property ownership are influenced by their parents and Australian society at large.
“That’s the message they’ve been brought up with. Presumably their parents got into the property market and done reasonably well in it, and they presume that’s the purpose of their lives,” he said.
The report also found 92% of Sydney dwellers aged 18-29 think property prices make home ownership no longer achievable for their generation, however 78% perceived taking on a mortgage burden is more preferable than renting.
“The rental market is not a long-term solution, although a large proportion of Gen Yers won’t get out,” said Randolf.
This report comes as News.com.au found a “great wall of unaffordability” in Sydney’s real estate with first-home buyers being “locked out” of suburbs within 50km of the Sydney CBD with the media house price exceeding $900,000.