Of the 2,500 people surveyed for RaboDirect’s 2015 Financial Health Barometer, 61% of respondents with children expressed their desire to help their kids financially in the future to purchase a home.
Furthermore, more than half of those who participated in the survey were concerned about their children’s capability to buy a home in the future.
Although a large number of Australian parents want to aid their children in buying their own homes, only 12% of respondents believed they would still be financially able to lend support to their children by the time they are ready to purchase.
Parents are well-aware of the difficulty of getting into the current housing market, said Glenn Wealands, head of research and analytics for Rabobank. The average first-home buyer loan is now more than $360,000.
Wealands also urged that “parents need to have an eye on their own situation”.
Around a quarter of Baby Boomer respondents saw themselves retiring with a mortgage, which means they have to wisely consider their financial priorities.
Parents should consider how exactly they want to help their children before coming up with a logical plan, Wealands stressed, concerned that parents might neglect their current financial situations.
Collections: Mortgage News
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