Parents’ life on hold for kids’ homes

THE dream of retirement is moving out of reach for parents as they put post-employment plans on hold to help their struggling children get a foothold in the property market.

A new survey shows that Australian parents are willing to sacrifice their retirement, luxuries such as a holiday or new car, or dip into their savings to lend a helping hand to their children or even grandchildren.

The Generational Property Ladder Survey by Homeloans .com.au reveals almost two in three parents are making financial or personal sacrifices to help their children or grandchildren buy their own homes.

And more than one in four parents willing to provide financial assistance are prepared to retire later than planned – a growing trend despite a growth in superannuation.

The company’s Will Keall said the results showed parents were willing to put their dreams on hold to help their children achieve their own.

“It’s commonly known how difficult it is for first-home buyers to get into the market, particularly in popular metro areas, and we’re seeing parents are prepared to go the extra mile for their children or grandchildren,” Keall said.

“To help with this, parents are doing what they can to help their children become first-home buyers, from cutting back on their own spending to going guarantor on a loan.”

According to the survey, parents help children out in several ways, including giving money, providing an interest-free loan, buying a home in partnership or letting the children return home to save for a down payment.