In my opinion it should be the reverse. We are the ones who decide to have children, we are the ones that should look after them, we are the ones that should instil in our children a sense of security, a sense of fairness and a sense of responsibility. We therefore should be the ones that help our children during any stage of their lives—just the same as we would want them to help us.
Not everyone is in a position to fork out tens of thousands of dollars to help their children buy their first house, but there are other ways to help. Co-signing loans, allowing them to live for longer in the family home, and yes for those that can afford it giving or loaning money to go towards their deposits.
Again, not all parents will be positions to do this for their kids, but for those who are I say why not? Wouldn’t you have liked a helping hand when you were starting out? Or did you get one from your parents?
I don’t think this is a new idea at all. I know of many of my friends who had parents who helped them out with deposits, if not outright buying them their first homes. Of course this was back when the average first house was less than $200K, whereas now I think you would be lucky to be able to find an older apartment in a not so nice area for less than $400K.
However, in the age of entitlement, what I think this generation needs to do is lower their expectations. Not everyone can afford to have a brand new apartment with city views or a house by the water. Once they have realistic expectations that maybe all they can afford is a one bedroom apartment that is a 25 minute walk to the nearest train station, that won’t mean they are mortgaged to the hilt to get the place of their dreams, then maybe they will see that home ownership is not out of reach. After all, I doubt many people got the place of their dreams as their first home, and I am telling you now my son won’t be getting that either.
I hope when it comes time for my son to move out of home into a place he has purchased himself that I will help him as much as I can, but I also want to make sure that he values what I have done for him, that he has worked hard to get what he has and that he doesn’t expect that I will buy it for him.
I know houses in Sydney seem unattainable but maybe it is only unaffordable if you want it to be.