{"id":25199,"date":"2015-04-22T01:00:05","date_gmt":"2015-04-21T15:00:05","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=4210"},"modified":"2015-04-22T01:00:05","modified_gmt":"2015-04-21T15:00:05","slug":"the-bank-of-mum-and-dad-john-mcgrath-2","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/the-bank-of-mum-and-dad-john-mcgrath-2\/","title":{"rendered":"The bank of mum and dad | John McGrath"},"content":{"rendered":"

In his recent column in\u00a0Switzer<\/a>, John McGrath discusses why increasing numbers of parents are getting involved in the real estate affairs of their children.<\/p>\n

Here’s what he had to say:<\/h4>\n

Over the past few years we\u2019ve seen the continuous rise of the bank of mum and dad.
\n\"John
\nYoung buyers unable to save a deposit quickly enough, or get approval on a loan big enough, are increasingly turning to mum and dad for financial help in the form of a family guarantee or a cash loan to give them a leg-up in the market.<\/p>\n

Some parents are buying jointly with their kids, the idea being to give their kids a place to live while also investing for future capital growth.<\/strong><\/p>\n

This is a particularly prevalent trend in University areas of Sydney such as Surry Hills, Redfern and Chippendale (close to UTS) and Camperdown (close to Sydney University), for example.<\/p>\n

The National Australia Bank has just released some numbers showing the proportion of first home buyers purchasing with a family guarantee has gone from 4.8% in 2010 to 6.7% today.<\/p>\n

First home buying has tapered off in many areas now that government grants only support the purchase of new or off-the-plan dwellings.<\/p>\n

There\u2019s a limit to the number of new projects in any one area \u2013 especially regional towns, so choices can be limited for young buyers relying on government assistance.<\/p>\n

That\u2019s why it\u2019s great that many young buyers have taken a different course in markets like Sydney, which have become very expensive in the most desirable inner city areas.<\/p>\n

Instead of lamenting that they can\u2019t afford to buy where they want to live, young buyers are renting and living in their favoured location and buying a more affordable investment property in the typical first home buyer areas.<\/p>\n

With interest rates so low right now, it\u2019s possible even in Sydney, for \u2018rentvestors\u2019 to find a good quality property in an affordable area where the rent will cover all \u2013 or at least most, of the mortgage repayments from day one.<\/p>\n

That\u2019s smart people evolving as the market evolves itself.<\/strong><\/p>\n

\"IsFor those young buyers who really want to own and live in their own place, I can\u2019t stress enough that now is the time.<\/p>\n

Forget about market cycles, government grants and so forth. Rock bottom interest rates are the key facilitator for buying in right now.<\/p>\n

According to McGrath\u2019s mortgage broking division, Oxygen Home Loans, the best deal out there is 3.99% fixed for three years.<\/p>\n

Can I just say that again \u2013 3.99%.\u00a0 Of course, rates will go back up again at some point, but in terms of being able to get into the market, today\u2019s rates make it that much easier.<\/p>\n

Of course, getting the deposit together can be a major challenge in expensive markets \u2013 no doubt.<\/p>\n

But if you can find a way to scrape it together \u2013 perhaps with mum and dad\u2019s help, and fix at 3.99% for the first few years, you are off to a cracking start in real estate.<\/p>\n

You\u2019re in an even better position to buy if you live in pretty much any other market outside Sydney!<\/p>\n

Sydney is really the only market in a boom right now.<\/strong><\/p>\n

If you\u2019re anywhere else, this is really the time to sit down and think about the opportunity today\u2019s rates puts in front of you.<\/p>\n

Don\u2019t miss the boat and look back in a few years\u2019 time and wish you\u2019d paid attention.<\/p>\n

According to NAB\u2019s stats, 73% of customers using the family guarantee product are aged 20-29 and 21% are aged 30-39.<\/p>\n

I\u2019m most impressed with the 3% who are in their teens.<\/p>\n

Hats off to them for getting started on the path to wealth creation early \u2013 many of us in retrospect wish we had been that savvy.<\/p>\n","protected":false},"excerpt":{"rendered":"

In his recent column in\u00a0Switzer, John McGrath discusses why increasing numbers of parents are getting involved in the real estate affairs of their children. Here’s what he had to say: Over the past few years we\u2019ve seen the continuous rise of the bank of mum…<\/p>\n","protected":false},"author":176692473,"featured_media":3865,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[13],"tags":[],"class_list":["post-25199","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-story"],"yoast_head":"\nThe bank of mum and dad | John McGrath - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/the-bank-of-mum-and-dad-john-mcgrath-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The bank of mum and dad | John McGrath - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"In his recent column in\u00a0Switzer, John McGrath discusses why increasing numbers of parents are getting involved in the real estate affairs of their children. Here’s what he had to say: Over the past few years we\u2019ve seen the continuous rise of the bank of mum...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/channels.realty.com.au\/realtytalk\/the-bank-of-mum-and-dad-john-mcgrath-2\/\" \/>\n<meta property=\"og:site_name\" content=\"Realty Talk\" \/>\n<meta property=\"article:published_time\" content=\"2015-04-21T15:00:05+00:00\" \/>\n<meta name=\"author\" content=\"Kevin Turner\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Kevin Turner\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-bank-of-mum-and-dad-john-mcgrath-2\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-bank-of-mum-and-dad-john-mcgrath-2\\\/\"},\"author\":{\"name\":\"Kevin Turner\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/ae5a3b5e891767bd82ad3a068c514329\"},\"headline\":\"The bank of mum and dad | John McGrath\",\"datePublished\":\"2015-04-21T15:00:05+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-bank-of-mum-and-dad-john-mcgrath-2\\\/\"},\"wordCount\":645,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-bank-of-mum-and-dad-john-mcgrath-2\\\/#primaryimage\"},\"thumbnailUrl\":\"\",\"articleSection\":[\"Latest Stories\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-bank-of-mum-and-dad-john-mcgrath-2\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-bank-of-mum-and-dad-john-mcgrath-2\\\/\",\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-bank-of-mum-and-dad-john-mcgrath-2\\\/\",\"name\":\"The bank of mum and dad | John McGrath - Realty Talk\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-bank-of-mum-and-dad-john-mcgrath-2\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-bank-of-mum-and-dad-john-mcgrath-2\\\/#primaryimage\"},\"thumbnailUrl\":\"\",\"datePublished\":\"2015-04-21T15:00:05+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/ae5a3b5e891767bd82ad3a068c514329\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-bank-of-mum-and-dad-john-mcgrath-2\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-bank-of-mum-and-dad-john-mcgrath-2\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-bank-of-mum-and-dad-john-mcgrath-2\\\/#primaryimage\",\"url\":\"\",\"contentUrl\":\"\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-bank-of-mum-and-dad-john-mcgrath-2\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"The bank of mum and dad | John McGrath\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#website\",\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/\",\"name\":\"Realty Talk\",\"description\":\"Your Trusted Voice For Property Investing. Anywhere, Anytime.\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/ae5a3b5e891767bd82ad3a068c514329\",\"name\":\"Kevin Turner\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/d2d83fe833d0cb22c11728d9aa25f73b319e658b72509553eff8680404d8bfa7?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/d2d83fe833d0cb22c11728d9aa25f73b319e658b72509553eff8680404d8bfa7?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/d2d83fe833d0cb22c11728d9aa25f73b319e658b72509553eff8680404d8bfa7?s=96&d=mm&r=g\",\"caption\":\"Kevin Turner\"},\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/author\\\/kevin-turner\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"The bank of mum and dad | John McGrath - Realty Talk","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/channels.realty.com.au\/realtytalk\/the-bank-of-mum-and-dad-john-mcgrath-2\/","og_locale":"en_US","og_type":"article","og_title":"The bank of mum and dad | John McGrath - Realty Talk","og_description":"In his recent column in\u00a0Switzer, John McGrath discusses why increasing numbers of parents are getting involved in the real estate affairs of their children. Here’s what he had to say: Over the past few years we\u2019ve seen the continuous rise of the bank of mum...","og_url":"https:\/\/channels.realty.com.au\/realtytalk\/the-bank-of-mum-and-dad-john-mcgrath-2\/","og_site_name":"Realty Talk","article_published_time":"2015-04-21T15:00:05+00:00","author":"Kevin Turner","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Kevin Turner","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/channels.realty.com.au\/realtytalk\/the-bank-of-mum-and-dad-john-mcgrath-2\/#article","isPartOf":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/the-bank-of-mum-and-dad-john-mcgrath-2\/"},"author":{"name":"Kevin Turner","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/ae5a3b5e891767bd82ad3a068c514329"},"headline":"The bank of mum and dad | John McGrath","datePublished":"2015-04-21T15:00:05+00:00","mainEntityOfPage":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/the-bank-of-mum-and-dad-john-mcgrath-2\/"},"wordCount":645,"commentCount":0,"image":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/the-bank-of-mum-and-dad-john-mcgrath-2\/#primaryimage"},"thumbnailUrl":"","articleSection":["Latest Stories"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/channels.realty.com.au\/realtytalk\/the-bank-of-mum-and-dad-john-mcgrath-2\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/channels.realty.com.au\/realtytalk\/the-bank-of-mum-and-dad-john-mcgrath-2\/","url":"https:\/\/channels.realty.com.au\/realtytalk\/the-bank-of-mum-and-dad-john-mcgrath-2\/","name":"The bank of mum and dad | John McGrath - Realty Talk","isPartOf":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/#website"},"primaryImageOfPage":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/the-bank-of-mum-and-dad-john-mcgrath-2\/#primaryimage"},"image":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/the-bank-of-mum-and-dad-john-mcgrath-2\/#primaryimage"},"thumbnailUrl":"","datePublished":"2015-04-21T15:00:05+00:00","author":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/ae5a3b5e891767bd82ad3a068c514329"},"breadcrumb":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/the-bank-of-mum-and-dad-john-mcgrath-2\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/channels.realty.com.au\/realtytalk\/the-bank-of-mum-and-dad-john-mcgrath-2\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/channels.realty.com.au\/realtytalk\/the-bank-of-mum-and-dad-john-mcgrath-2\/#primaryimage","url":"","contentUrl":""},{"@type":"BreadcrumbList","@id":"https:\/\/channels.realty.com.au\/realtytalk\/the-bank-of-mum-and-dad-john-mcgrath-2\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/channels.realty.com.au\/realtytalk\/"},{"@type":"ListItem","position":2,"name":"The bank of mum and dad | John McGrath"}]},{"@type":"WebSite","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#website","url":"https:\/\/channels.realty.com.au\/realtytalk\/","name":"Realty Talk","description":"Your Trusted Voice For Property Investing. Anywhere, Anytime.","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/channels.realty.com.au\/realtytalk\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/ae5a3b5e891767bd82ad3a068c514329","name":"Kevin Turner","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/d2d83fe833d0cb22c11728d9aa25f73b319e658b72509553eff8680404d8bfa7?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/d2d83fe833d0cb22c11728d9aa25f73b319e658b72509553eff8680404d8bfa7?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/d2d83fe833d0cb22c11728d9aa25f73b319e658b72509553eff8680404d8bfa7?s=96&d=mm&r=g","caption":"Kevin Turner"},"url":"https:\/\/channels.realty.com.au\/realtytalk\/author\/kevin-turner\/"}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts\/25199","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/users\/176692473"}],"replies":[{"embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/comments?post=25199"}],"version-history":[{"count":0,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts\/25199\/revisions"}],"wp:attachment":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/media?parent=25199"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/categories?post=25199"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/tags?post=25199"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}