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From News.com.au over the weekend came a new take on the extraordinary measures young Australians are taking to secure an owner-occupied home:
…aspiring entry-level buyers with little or no savings behind them are relying on their parents to stump up their deposit which they are formally agreeing to pay back — with interest — while also paying off a mortgage.
Parents are forgoing handouts and instead signing their kids up to even more debt by making them sign legal documents to repay back the money they stumped up to help them enter the real estate market.
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.