The Bank of Mum and Dad: Are Parents Truly the Key to Homeownership for Millennials?
With young Australians increasingly relying on the 'bank of mum and dad' to enter the housing market, recent research highlights the growing role of parental assistance. The study surveyed 1,725 Australian parents to investigate financial contributions to their children's home purchases, revealing trends, risks, and disparities impacting today's homeownership landscape.
- Country:
- Australia
In a bid to understand the growing dependence of young Australians on parental support for homeownership, fresh research has delved into the 'bank of mum and dad'. Conducting a survey with 1,725 parents, researchers sought to unravel the types of financial assistance provided and the broader implications.
Findings indicate a noticeable increase in support through rent-free living, surpassing direct cash gifts as the favored method in recent years. The study also reveals entrenched disparities as higher-income parents offer more substantive support such as loans, while others struggle to provide financial aid at all.
This pattern signals a deepening divide in housing wealth among younger generations. Researchers point out the absence of legal protections for parental financiers, especially highlighting the risks of financial abuse. The evolving dynamics underscore the complex landscape of Australian homeownership today.
(With inputs from agencies.)
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