Gen Y Buyers Relying On Parents
- April 23, 2014
- Darrin Leung
After 20-odd years you thought you’d finally got your child out of your fiscal hair for good. Long gone were the days of having to pay their way through their teenage social life. You’d bid farewell to the era of lending money to get them through to the next pay cycle after one too many pints on the weekend. Your offspring finally wanted to buy their own property. They were officially a grown up and you were in the clear, free to enjoy your pennies and negotiate the stress that comes with money on your own, or so the script was meant to end. That was until the savvy researchers that Generation Y are discovered - with one click on their smartphones - the power of equity.
One Brisbane property investment trend has seen adults using their parents equity from property to easily enter the market. National Australia Bank described equity as “the difference between the value of your home and how much you owe the bank against it”. What’s stated next is the technical loophole buyers from Generation Y are using to their advantage with parents. “The great thing about equity is that you can use it as a security with the bank and borrow against it,” National Australia Bank’s website reads. Whereas buying property was once considered amongst the most independent human acts, that’s no longer the case given the financial backing being provided by parents.
After pitching a host of available properties to prospective Generation Y buyers, real estate agents across the country are being left waiting for a response. It’s not because buyers are looking to stall nor are they getting cold feet about making a commitment as full-fledged as buying a home. It’s because much to the anguish of the inner-child buried deep down inside of us all, you know the baby-faced kid who swore they’d make it on their own one day, the outcome is dependent entirely on the answer to the following consultation: “let me ask mum and dad”. And so the cycle of financial leniency that began as a teenager, rears it’s ugly head for the parents of the fiscal unruly who are forced to provide monetary security yet again.