It’s not just in Australia that young people are relying on the “Bank of Mum & Dad” or and inheritance.
A new report from Sanlam UK has revealed 34% of 25-45-year-olds would use inheritance to purchase property – the second most commonly cited use. Whilst saving or investing came top at 38%, alarmingly, almost a quarter (24%) will be relying on inheritance to pay off debt. Today, parents are handing out an average of £18,000 to help their children get onto the property ladder – but this amount differs by region. The so-called ‘Bank of Mum and Dad’ will be contributing to more than one in four house sales this year; taking on the role of a mortgage lender, parents will be giving the equivalent of £5.7billion in terms of cash to their children.
Peter Mericka B.A., LL.B – Australian Legal Practitioner, Consumer Advocate and Principal of Lawyers Real Estate Pty Ltd and Lawyers Conveyancing – Melbourne – Victoria.