One dad has made Father Christmas look like a cheapskate by gifting his four children the ultimate Sydney present — their own homes.
Finance worker Majed Akil was afraid his adult children would never be able to save u[p a deposit on their own, so used his savings and equity in the family home to put down deposits on four apartments in Liverpool.
Two of the four siblings — who are aged 19 to 30 — have taken over the mortgages with their partners.
The other units will be rented out until the younger two complete their university studies and are ready to move in.
“I wanted to give them a head start because I think it has become impossible for our kids to save $100,000 to $150,000,” Mr Akil said.
“I also lost my late wife — their mum — to cancer in 2013, and after going through that I had a plan to keep them close together so they could support one another.”
He bought the two bedroom units off the plan for between $487,000 and $546,000.
The units are in the first stage of Coronation Property’s The Paper Mill project on the Georges River, which was completed earlier this year.
The similar apartments are even in the same building, only on different floors.
While he paid about $50,000 to secure each one, Mr Akil said it was a solid investment, as his children now have between $100,000 and $150,000 in equity.
The doting dad’s second-eldest, Nadeen Akil, said her father’s generosity had been a great help. It meant she could pay for her wedding in March and still have a home to move into.
“He has helped us get on our feet. If he hadn’t, we would have been renting a place now so we are very grateful,” she said.
The move has also strengthened the family bond, as the sisters often carpool and have their younger siblings stay over, she said.
This is yet another case of Millennials being given a helping hand by their parents — a growing trend that is exactly what that generation needs, according to demographer Mark McCrindle.
He said despite a 10 to 15 per cent dip in values in some suburbs, first home buyers were still struggling.
While their cash flow is good due to education and full-time work, their savings are minimal. This goes against the typical 10 to 20 per cent deposits now required.
“It is only a buyer’s market for those who have significant funds or already have access to loans — that means parents who have a bit of equity and savings can be active in this market and we will see more of that happening,” Mr McCrindle said.
“This is actually a very wise approach by parents; a mortgage is the best forced savings vehicle we have ever had in Australia so it pushes (young buyers) to pay down the mortgage every month and cut back on discretionary expenses.”