What do I advise the kids.....buy or rent and invest?

Yep! I did say present them with strategies. They will do whatever they choose to do. And good on them.

 

As first home buyers they are in a bad spot at the moment trying to buy in Sydney. Take the plunge now and there is a good chance the property will be worth less in a few years.

The smart option would be to probably invest somewhere interstate. Brisbane maybe?

Problem is though if they do that you will still have them at home until they can save another deposit and then buy in Sydney in maybe 3-5 years time...by then they would be in their 30's...

 

if they buy now in a cheaper place like brisbane or even adelaide, likely in 3-5 years time there will be a decent amount of equity built up- take it out then. Still it may not be enough to afford sydney, but it will likely be more than strictly saving.

 

We were in this same position as a newly married couple at the peak of the last Sydney boom in 2005. We were renting but had managed to srape together enough funds for a 2 bed unit in Mona Vale on Sydney's Northern Beaches. It took a considerable amount of time for us to realise capital gain after buying at the peak of the market. In fact, it was 2014 before we felt like we had made any headway. If we could give our younger selves some advice it would have been to invest first and buy a home second, if at all.

 

It's all rainbow unicorn stuff. If Brisbane/Adelaide don't move you're still stuck at home bumping next door to your mum and dads bedroom.

 

Are granny flats an option ? Either at your place or at the Western suburbs IP ?

It was a big part of our investment strategy - you get returns of 15%+ on your investment.

It is also part of our strategy for the kids as they get older - gives everyone better quality of life while still helping them save. Much better than unit living.

Give them whatever help you can - it is going to be hard to stay in the area.

 

If they're 28 years old, are they still considered kids?

 

I think you have the right idea of providing a soft guiding hand.
I wouldn't want to pressure your kids into buying, it needs to be a decision they come to.
If it doesn't work out financially, it will only cause angst if you pressure them. I remember reading articles on this from Ireland.

The shire has really suffered from a lack of construction due to a badly implement LEP. This has meant that a lot of construction has only just started to come online now all of a sudden.

Eventhough some of the current projects are quite large I believe there is quite a bit of pent up demand that will see them comfortably absorbed.
Your major issue in terms of supply will largely come from any yet unnanounced projects, which is a big unknown.

Seeing the prices in the Shire atm for apartments I personally wouldn't feel rushed to buy. But if its for a PPOR its more about the lifestyle choice.

I don't see anything wrong with them renting or living with you if everyone is ok with it.

I don't know what the guy with a bad attitude's problem is.

 

also probably important not to cross the line, where assistance can be seen to be controlling, not specially talking about your scenario.

Most people I know want to help their children, a leg up, why not, they need it today considering how some markets have been booming.

Also I think its dependent on your children's income, its not an even playing field here and not everyone is on high incomes

 

Judgmental behaviour is never helpful on a forum, and to assume everyone is tarred with the same brush is ignorant.

 

At 28 they are adults, not children.

What do THEY want to do?
Marg

And yes, I do have three (adult) children....

 

pinkboy

 

Back to topic guys..... or start your own thread

rent and invest...everyone seems to not be investing in Sydney now. They are just starting out...and want money left over for more o/s trips. Advice?

 

I'm of a similar age to your daughter, so please note that I don't have a world of experience when reading my comments.

I think the best thing you can do, is provide her with the tools to critically analyse her situation, needs and wants, and develop her own strategy.

She's going to be making financial decisions for a long time, it's best for her to make those decisions now while she has your support (and time to recover from any errors).

Perhaps this might be a good reference:
Book list

 

good advice

 

That's all you can do,you can teach them too save what's right and wrong
and as there is already a IP then by staying at home and working a second job may be the only way..
And we have daughters still at home with us ,one just bought the first investment property this week in inner brisbane ,the title holders paid over 60k 7 years ago then the contract price she signed the contract for that i helped her with so it can be done if they look hard enough without the chains of dependence..

 

Sell one of my Investment properties to them at original price?

they are going to inherit anyway

 

Ill take a few if they dont want them

 

I think there are issues with this if not sold at market value? ATO wants their stamp duty on market value? Red flag if there is no agent involved? Perhaps some way around this?? accountants may know more about this, was going down this road some time ago

 

Ooops. I should say that they are in a flat downstairs. Separated. And we are very careful not to make too much noise!!!