In the Media

  • How to get grown up kids into their own home

    Published in: Excel Website
    Published on: 10 Jul 2015

    According to the Australian Bureau of Statistics the number of adult children still living at home has skyrocketed with a whopping 23% choosing to stay with mum and dad compared to 19% in 1986. There are many factors contributing to this including housing affordability, higher cost of living and more relaxed rules around the house creating a whole new generation of young adults who seem very happy to stay right where they are.

     

    Regional Queensland families have also experienced the added pressure of hikes in local house prices due to mining and property investment which has forced young ‘would be’ first home buyers out of the market.

     

    Gen Y is doing it tougher with the average Australian house price being around 9.3 times the average national wage, compared with 5.8 times 40 years ago.  Having said that, there are still affordable homes in the market for first home buyers if they’re prepared to look... Where Baby Boomers were happy to kick off life in an old house on the outskirts of town with 1 bathroom; Gen Y’s have a much higher expectation of living standards.  The problem is they believe they should be starting their property journey at the same place where their parents finished after a lifetime of work.

     

    How parents can help?
    You can help by letting your kids live at home longer to save for a deposit but if housing unaffordability continues to rise they may be staying with you for a lot longer than you think. One of the best ways to assist is to get your kids to acknowledge that they need to start smaller. A smaller new home with low maintenance is the key. This is difficult to secure as most new homes consist of 4 bedrooms and cost over $400,000 to purchase.

     

    The Future Housing Taskforce is solving this problem with a series of smarter and smaller homes in the regional township of Biloela to prove that housing affordability can be achieved at under $300,000. The two bedroom homes are ideally suited for singles and young couples and have been purpose designed on large 800m2 lots to extend to 4 bedrooms when they start a family or achieve more capital to build out the rest of their home; essentially we’ve designed a home that ‘grows’ with them.

     

    These homes have also been approved for Zero Deposit Home Loans and those eligible can move into home ownership for as little as $298 per week average mortgage repayments. These are the sorts of initiatives that should be supported across the country by local councils and government.

     

    The homes are completed and ready to move into and with the right support, parents can help their kids get out of the rental cycle and into their first home. The homes are ideal as a stepping stone into the property market and make for exceptional investment properties when it’s time to move on.  

     

    I suspect most young adults don’t want to be called ‘Kippers’ (Kids 
in Parents
 Pockets
 Eroding
 Retirement Savings) and do want to achieve independence and get a foothold in the property market but they need to take baby steps, just like their parents did 30 years ago. By designing new homes that support young people as they grow in life we can help break the ‘stay at home’ cycle and allow parents to finally enjoy that empty nest! 

     

     

    About the Future Housing Taskforce
    The Future Housing Taskforce was founded in 2010. Australia’s key industry leaders have joined forces to tackle the challenges of housing affordability faced by millions of Australians.The Taskforce brings together the best minds in the country to find new and innovative ways to house our future generations. For more information on this story visit
    www.highlandestate.com.au