Powered by MOMENTUM MEDIA
subscribe to our newsletter sign up

Parents refinance, delay retirement to get kids on ‘ridiculous’ property ladder

Retirement, buy a property, kids, children, parents

New market research indicates about 65 per cent of parents are dipping into their own retirement funds to help their children buy a home.

The 2018 Generational Property Ladder survey, backed by lender Homeloans.com.au, also showed 29 per cent of the 1,072 respondents would delay retirement to give their children financial assistance.

A further 10 per cent are willing to refinance to free up cash for their children, and 35 per cent would consider offering an interest free loan.

Going guarantor on a loan is also becoming a popular option, according to Will Keall, head of marketing at Homeloans.com.au.

Advertisement
Advertisement

This survey comes as data from the banking regulator, APRA, indicates that interest-only loan approvals plummeted by 55 per cent last quarter.

Investor home loan approvals also dropped by 12.4 per cent over the quarter, representing 31.1 per cent of new home loan approvals, a total of $117.5 billion.

Investors looking to enter the property market for the first time should be particularly wary of increased scrutiny on their spending habits, including through popular payment platforms like Afterpay and ‘tap and go.’ You can learn more about this here.

Parents refinance, delay retirement to get kids on ‘ridiculous’ property ladder
Retirement, buy a property, kids, children, parents
nestegg logo
subscribe to our newsletter sign up
FROM THE WEB
Recommended by Spike Native Network
Neil - I retired about a year ago and now I've got less income than I planned for. Can I sue my financial planner?....
Joe - Agree with Terry Dwyer. The really nasty part is the way it will hit self funded retirees (through their SMSF in many cases) who have direct shares.......
John - Not sure loss of 30% of income is something I just let go. Options I will be doing is investing overseas, local and international REITs and seeing if.......
Dr Terry Dwyer, Dwye... - I am amazed by these comments. The effects will be subtle but pervasive. It will have a huge effect on superannuitants in pension mode as with low.......