FHBs awaiting property bubble popping any time soon are foolhardy: Ken Raiss
Ken Raiss, who heads the national accounting and wealth advisory group Chan & Naylor, has advised young property purchasers to get a foot on the property ladder especially as property availability in the major metropolitan areas was dwindling and demand continues to grow.
"Gen Ys popular blind faith in the property bubble popping any time soon is foolhardy," he says, adding that Gen Y could also improve their overall level of financial literacy.
Raiss suggests ditching any complacency and giving serious consideration to alternative and more strategic approaches to property acquisition such as shared purchasing and gaining parental assistance.
"Failure to do so could see Generation Rent becoming Generation Boomerang," he said, a refence to the frequency children choose to cohabitate with their parents after some years absence.
He says parental support may be an option for adult children lacking sufficient funds to get on the property ladder, "but this requires caution."
He recommends a simple and formal loan agreement to help with a deposit as safer than parents becoming co-guarantor.
"Parents have to be very careful ... being financially responsible for 100% of the children's debt also restricts what the parents can do with their future financial lifes," he told Property Observer.
