We’ve been treated to a run of news stories about young people who’ve bought homes in their 20s, most with the help of their parents.
I like to see people get ahead, and I congratulate these young people, especially on their good fortune to be born to parents wealthy enough to help them.
These stories must make painful reading for less fortunate young people, and for parents unable to help their offspring into homes.
It seems on top of everything traditionally expected of parents, the pressure is on for them to help their young ones avoid a lifetime rental serfdom in the city of their birth.
Here are the four messages parents in high house-price cities might take from these articles on young home-buyers.
Two are all achievable, one a stretch, and the other all-but impossible.
I rate each one on a one-10 ‘‘doability’’ scale.
Science shows children with self-control grow into wealthier adults. Parents, it is your job to instil self- Raise children with self-control Teach them how money works Help them find their education success
control in your young ones. You also need to avoid raising a lilylivered narcissist who believes they are owed something by life. As young people who can’t afford homes are finding, the rest of the country doesn’t feel it owes them an affordable home. Raising unspoilt children is eminently doable, so I’ll say 10/10.
I’ve met people who bankrupted themselves to buy, or rent in the ‘‘right’’ school zone, or who spent their retirement savings capacity on private schooling. The message is clear though: Children must succeed in education as in our merciless economy the least-skilled work for peanuts on insecure contracts. To have any chance of owning a home, children must be helped by their parents to achieve, whether to become a skilled tradie, or higher education-trained professional. Takes time, and a lot of effort. I’ll say 8/10.
We dangle massive loans in front of 17 year-olds and expect them to make rational decisions. It’s like we ‘‘grown-ups’’ all think we were models of financial rectitude at 17! The result is over 100,000 loans in default. Calling the borrowers traitors, idiots, or bludgers isn’t helping. Parents, it is imperative your children are ready to make the student loan decision. By 17, they must be