{"id":4210,"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","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/the-bank-of-mum-and-dad-john-mcgrath\/","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.
\nSome 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>
\nThis 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.
\nThe 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.
\nFirst home buying has tapered off in many areas now that government grants only support the purchase of new or off-the-plan dwellings.
\nThere\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.
\nThat\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.
\nInstead 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.
\nWith 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.
\nThat\u2019s smart people evolving as the market evolves itself.<\/strong>
\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.
\nForget about market cycles, government grants and so forth. Rock bottom interest rates are the key facilitator for buying in right now.
\nAccording to McGrath\u2019s mortgage broking division, Oxygen Home Loans, the best deal out there is 3.99% fixed for three years.
\nCan 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.
\nOf course, getting the deposit together can be a major challenge in expensive markets \u2013 no doubt.
\nBut 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.
\nYou\u2019re in an even better position to buy if you live in pretty much any other market outside Sydney!
\nSydney is really the only market in a boom right now.<\/strong>
\nIf 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.
\nDon\u2019t miss the boat and look back in a few years\u2019 time and wish you\u2019d paid attention.
\nAccording to NAB\u2019s stats, 73% of customers using the family guarantee product are aged 20-29 and 21% are aged 30-39.
\nI\u2019m most impressed with the 3% who are in their teens.
\nHats 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":176692471,"featured_media":3865,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[13],"tags":[],"class_list":["post-4210","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\/\" \/>\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\/\" \/>\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=\"rolanrush\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rolanrush\" \/>\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\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-bank-of-mum-and-dad-john-mcgrath\\\/\"},\"author\":{\"name\":\"rolanrush\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"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\\\/\"},\"wordCount\":645,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-bank-of-mum-and-dad-john-mcgrath\\\/#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\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-bank-of-mum-and-dad-john-mcgrath\\\/\",\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-bank-of-mum-and-dad-john-mcgrath\\\/\",\"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\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-bank-of-mum-and-dad-john-mcgrath\\\/#primaryimage\"},\"thumbnailUrl\":\"\",\"datePublished\":\"2015-04-21T15:00:05+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-bank-of-mum-and-dad-john-mcgrath\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-bank-of-mum-and-dad-john-mcgrath\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-bank-of-mum-and-dad-john-mcgrath\\\/#primaryimage\",\"url\":\"\",\"contentUrl\":\"\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-bank-of-mum-and-dad-john-mcgrath\\\/#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\\\/384a57ac9e52cb9bf19896cb15eaa52d\",\"name\":\"rolanrush\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g\",\"caption\":\"rolanrush\"},\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/author\\\/rolanrush\\\/\"}]}<\/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\/","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\/","og_site_name":"Realty Talk","article_published_time":"2015-04-21T15:00:05+00:00","author":"rolanrush","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rolanrush","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\/#article","isPartOf":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/the-bank-of-mum-and-dad-john-mcgrath\/"},"author":{"name":"rolanrush","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d"},"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\/"},"wordCount":645,"commentCount":0,"image":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/the-bank-of-mum-and-dad-john-mcgrath\/#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\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/channels.realty.com.au\/realtytalk\/the-bank-of-mum-and-dad-john-mcgrath\/","url":"https:\/\/channels.realty.com.au\/realtytalk\/the-bank-of-mum-and-dad-john-mcgrath\/","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\/#primaryimage"},"image":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/the-bank-of-mum-and-dad-john-mcgrath\/#primaryimage"},"thumbnailUrl":"","datePublished":"2015-04-21T15:00:05+00:00","author":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d"},"breadcrumb":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/the-bank-of-mum-and-dad-john-mcgrath\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/channels.realty.com.au\/realtytalk\/the-bank-of-mum-and-dad-john-mcgrath\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/channels.realty.com.au\/realtytalk\/the-bank-of-mum-and-dad-john-mcgrath\/#primaryimage","url":"","contentUrl":""},{"@type":"BreadcrumbList","@id":"https:\/\/channels.realty.com.au\/realtytalk\/the-bank-of-mum-and-dad-john-mcgrath\/#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\/384a57ac9e52cb9bf19896cb15eaa52d","name":"rolanrush","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g","caption":"rolanrush"},"url":"https:\/\/channels.realty.com.au\/realtytalk\/author\/rolanrush\/"}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts\/4210","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\/176692471"}],"replies":[{"embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/comments?post=4210"}],"version-history":[{"count":0,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts\/4210\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/media?parent=4210"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/categories?post=4210"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/tags?post=4210"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}