Australians relying on inheritance to pay for homes
Published 31 Aug 2017
The cost of buying a NSW property is on the rise. Australian Bureau of Statistics data showed prices in Sydney climbed 3 per cent in the March quarter of 2017.
Meanwhile, the latest CoreLogic research found the median value of a home in the NSW capital has jumped 12.4 per cent year on year to $856,000.
It’s therefore hardly a surprise that 87 per cent of Australians are worried about housing affordability. This figure jumps to 95 per cent for millennials, of which 50 per cent are very concerned, according to a new CoreLogic report.
So what does this have to do with contesting a will? Well, CoreLogic’s study revealed that a growing number of Australians, particularly younger generations, are expecting to inherit the money they need to buy their first home. But what if that inheritance isn’t forthcoming?
The Bank of Mum and Dad
According to CoreLogic, people are relying on their parents in various ways to help them become homeowners.
More than one-quarter of Australians said the greatest help for them buying a home would be receiving inheritance. One in 10 respondents said some kind of financial assistance from family would be important for them getting on the property ladder, while 17 per cent specifically want help with a deposit.
Meanwhile, 28 per cent of millennials who were still living at home with their parents said they chose this living arrangement to save up money for a down payment on their first or next property.
However, are adult children placing too much expectation on their parents to fulfil their homeownership dreams? And what are the options for people who believe they didn’t receive adequate provisions from the will of a loved one?
Is relying on inheritance the right move?
Waiting for an inheritance to purchase property has disadvantages. First, Australia is an ageing nation, which means children could be waiting well into their middle age before receiving assets from the family estate.
Second, not all parents pass their estate down to their children. Many leave their assets to a spouse or de-facto partner first, and there are no guarantees the money will subsequently be distributed to the deceased’s offspring.
However, individuals can pursue a family provision claim to receive a proportion of their parent’s estate. If you’d like to discuss your options for contesting a will, please contact Gerard Malouf & Partners Will Dispute Lawyers for more information.