Real estate in Perth, especially its southern suburbs, has always held its ground as a robust asset class. Experts forecast that Perth property values are expected to grow 30% between 2023 to 2027.
Personally, I’ve seen and heard of numerous parents stepping in to help their children break into the property market. Without this support, a significant number of young Australians could face an extended saving process before buying a home.
My Son’s Homeownership Journey
Intrinsically, like other parents, I’ve always felt a pull to support my children. Here’s a story close to my heart.
While my second-born son was living at home, he met his soulmate and they started a new chapter together, initially renting a place in Wilson. Not long after, they were met with an unexpected rent increase. Sensing the shifts in the property market, I introduced them to my trusted broker. They were on the brink of making a home purchase but just needed a bit more guidance.
Soon, we pinpointed a home in Huntingdale that just needed a renovation. After they got married and with a baby on the way, they bought the property, which turned out to be a wise move given the current market.
That home they courageously invested in at $370k? It stands with a valuation of $500k today.
For parents resonating with my experiences and looking to assist their children, here are some recommendations I’ve put together:
Set Clear Boundaries: While it’s natural to want to help, ensure you don’t stretch yourself thin. Remember to maintain a balance that ensures both your and their financial health.
Prioritise Financial Prudence: Encourage your children to purchase within their means. Property is a long-term game, and it’s essential they understand the stakes.
Lead with Logic: Navigating the property landscape can be overwhelming. Advise them to steer their decisions with clarity and practicality, not emotions.
Leverage Government Aids: Familiarise them with the available government grants. Such aids can be game-changers, easing their journey into homeownership. Some of them include:
- First Home Owner Grant (FHOG)
- HomeBuilder Grant
- Stamp Duty Concession
- Keystart Home Loans
- Shared Home Ownership
Every property journey is unique, and having the right information can make all the difference.