Afraid that his four adult children would never be able to save up for a deposit on their own, Majed Akil used his savings and equity in the family home to put down deposits on four apartments at The Paper Mill in Liverpool, one for each of his children aged 19 to 30.
Two of the four siblings have now taken over the mortgages with their partners, whilst the younger two have rented their apartments out until they are ready to move in following their university studies.
“I wanted to give them a head start because I think it has become impossible for our kids to save $100,000 to $150,000,” Mr Akil said.
Keeping his siblings close together so they could support one another, resulting from the departure of his late wife was key to Majed, who bought the units off the plan for between $487,000 and $546,000 in the first stage of the project. Paying $50,000 to secure each apartment, the children are now sitting on between $100,000 to $150,000 in equity between themselves.
“He has helped us get on our feet. If he hadn’t, we would have been renting a place now so we are very grateful,” Majed’s second eldest son Nadeen Akil said.
Demographer Mark McCrindle believes this is yet another case of Millennials being given a helping hand by their parents – a growing trend that is exactly what that generation needs.
“It is only a buyer’s market for those who have significant funds or already have access to loans – that means parents who have a bit of equity and savings can be active in this market,” Mr McCrindle said. “This is actually a very wise approach by parents; a mortgage pushes (young buyers) to pay down the mortgage every month and cut back on discretionary expenses.”
Original article: ‘Four happy kids of ‘Father House-mas’ | Sunday Telegraph, December 9, 2018
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