‘Kidult’ ten­ants come at high cost


MARI Kaup­pinen is happy to have her daugh­ters liv­ing at home for longer, de­spite it cost­ing her more to keep the house­hold run­ning.

The num­ber of “kidults’’ liv­ing off the “Bank of Mum and Dad” has soared in re­cent years, as they re­alise that pay­ing for their own ex­penses is be­yond their reach once they be­come adults.

Mrs Kaup­pinen has two daugh­ters: Kris­ten, 16, who is com­plet­ing Year 11, and Tara, 18, who has been travelling through Europe for three months.

“We want to be able to sup­port the girls fi­nan­cially and also we like hav­ing them around, but at the same time, it’s im­por­tant they learn the value of money,” she said.

“We have no plans to charge them to live here.”

Mrs Kaup­pinen said de­spite not be­ing able to bring down her mort­gage costs in re­cent years, mainly be­cause of ex­pen­sive pri­vate school fees, she’s happy to have both daugh­ters liv­ing at home as long as they wish.

Data from on­line mort­gage broking firm Uno Home Loans, which quizzed 1500 peo­ple, found hav­ing adult chil­dren liv­ing at home slowed down a par­ents’ mis­sion to pay off their mort­gage.

It also found 72 per cent of bor­row­ers would make ex­tra home loan re­pay­ments if their chil­dren moved out.

But Uno CEO Vin­cent Turner said there are other ways to bring down mort­gage costs if adult kids stick around. “The eas­i­est thing is get a cheaper rate, but the big­ger lever typ­i­cally is mak­ing ex­tra re­pay­ments,” he said.

“Your abil­ity to do this de­pends on how much money you have left over to make your re­pay­ments, and the will to do it as well.”

He said chil­dren’s mo­ti­va­tion to move out once they fin­ish school can be fairly low if they re­alise they are “on a good wicket’’.

Uno data found that bor­row­ers with a $300,000 30-year loan who made ex­tra re­pay­ments of $200 a week could save $117,000 in in­ter­est paid.

Tribeca Fi­nan­cial’s chief ex­ec­u­tive of­fi­cer, Ryan Wat­son, said if chil­dren aged 18 and over were still liv­ing at home, they should con­trib­ute to house­hold ex­penses. “Fi­nan­cial con­tri­bu­tions from kids liv­ing at home and work­ing full-time can dra­mat­i­cally re­duce the life of a mort­gage,’’ he said.

“A mort­gage paid off by age 55 would pro­vide sig­nif­i­cant fi­nan­cial free­dom to par­ents, in such as they could then fo­cus more heav­ily on fur­ther build­ing up their re­tire­ment sav­ings.’’

NO HURRY: Mari Kaup­pinen and hus­band Dan O’Sul­li­van say their daugh­ters, in­clud­ing Year 11 stu­dent Kris­ten, can stay at home in­def­i­nitely. Pic­ture: Tim Pas­coe

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