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Bank of Mum and Dad? It’s cultural

By Marilyn Campton

Should parents give financial support to help their children buy a home? New research shows Aussies are divided on the issue.

Newly-released findings from Westpac’s Ipsos research report reveals culture can be a driving force behind parents wanting to help their children onto the property ladder.

The research found that around three in four homeowners believe that young people today aren’t willing to make the sacrifices to their lifestyle that are necessary to save a home deposit or pay off a mortgage. Many respondents agreed, however, that first home buyers face the biggest challenges in the property boom (60 per cent) and that parents should help their children buy property if they have the money (47 per cent).

The data also revealed that Asian Australians were much more likely than the overall population to believe that ‘it’s only fair homeowners share the wealth they’ve accumulated in the property boom with their kids’ (60 per cent vs 39 per cent total sample).

Westpac’s Home Ownership spokesperson, Andy Wright, said the results are reflective of a culture in which it is typical for parents to provide financial support to children to buy their first home.

“The ‘Bank of Mum and Dad’ has become a hot topic in housing affordability”, Wright said.

“Our research shows that while empathetic to young people’s housing challenges, many Australians are not convinced that young people are doing enough to buy their first home, including making sacrifices, or looking at more affordable areas.”

“But it also shows Asian families are in the practice of giving financial support to children to help them buy a home and believe this is an important thread in the fabric of their family.”

Asian Australians were also found to be more likely to agree that homeowners should help their children with money (65 per cent vs 47 per cent total). Home ownership as a family asset is also important, with more Asian Australians (70 per cent) believing that owning a home is important for parents so they can leave an asset to their children, compared to all Australians (60 per cent).

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