Parents help Western Australians get on the property ladder
Monday, 16 Jul 2012
More young buyers are getting on the property ladder in Western Australia thanks to help from their parents, a report has found.
The West Australian interviewed a number of lenders, many of whom agreed that the trend was rising.
Police & Nurses chief executive Fred Huis explained: "In the past if a mortgage loan was made and it wasn't too strong it didn't matter because house prices were going up so quickly.
"House prices aren't going up now so I think financiers are saying, 'We'd prefer to have a bigger deposit'."
The report found that lenders are increasingly likely to offer different options to those interested in Australian property, including guarantor support or limited recourse guarantees.
This follows claims from broker Paul Gollan, who told Australian Broker Online that Generation Y is presenting a growing number of opportunities to the mortgage industry.
He said that this particular demographic is cautious about taking on debt, but still has the aspiration needed to get on the property ladder.
These people are also capable of making sound investments, meaning they will enter retirement on a pretty good financial footing.
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