Most first home buyers are turning to the eleventh largest unregulated bank for financial support when purchasing their residential property. Who is this unregulated lender you ask? The bank of Mum and Dad!
The bank of Mum and Dad have become a crucial factor in helping first home buyers enter the highly expensive market. Recent stats show that this bank is ahead of AMP Bank, HSBC and many community banks. With an estimated $16 billion worth of transactions with the bank of Mum and Dad, which continues to grow by the day.
Author, Martin North, states that more than 50% of first-time buyers required financial support from their parents, whether it be a gift or loan, or other related help. This is believed to be due to the accessible equity held by those owning property. This, however, is another reaffirms the inter-generational issues, such as the wealth gap, as well as the risks within the property market.
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