Grandchildren are one of the consolations for getting old. Living near them means being able to see them, and chipping in with school pick-ups and care so they don’t have to spend hours and hours in after-school care every day. But high house prices can mean generations of the same family struggle to live near each other. Some people even see their children flee their home cities in search of better, and cheaper, living elsewhere. have to start up new homes alone. They have a little shy of $300,000 each to go shopping with. They’ll be lucky not to end up doubling the debt they individually carry, if they can ever buy a home again. What a way to start single life again. There’s been a drive to get us to think about ourselves as selfish individuals seeking only to maximise personal wealth. Families don’t think like that. Homeowners watch with horror when their young ones take on mortgages of $600,000-$800,000, knowing what the result will be. Paid back over 30 years, there’s $650,000-$850,000 in interest to pay, assuming an optimistic 6.5 per cent interest rate. What parent wants their children to be lifelong slaves to banks? sometimes, but downsizing, or upsizing can become a nightmare in a hot property market where unconditional auctions are the norm. If you accidentally end up shut out of the market, things can very quickly turn against you.
For many young people the key to their own home is out of reach.