Real Estate

parents buy their preschool aged kids first homes

Written by The ReReport

Jonny and Fahriye Gatt have bought homes for their 18-month-old daughter Ayla and four-year-old Siana. Picture: Sarah Matray

A MELBOURNE mum and dad have splashed hundreds of thousands of dollars on houses for their preschool-aged kids.
Jonny and Fahriye Gatt have watched property prices soar over the past five years.
Fearing their daughters would be permanently priced out, they’ve bought Siana, 4, and Ayla, 18 months, each a home in Sunbury.
“I live in Rowville, but I bought that in my early 20s — off my dad for a few hundred grand, and that was huge for me,” Mr Gatt said.

RELATED: Casey, Wyndham first-home buyers priced out by $67,000 land price hike

Market toughest ever for first-home buyers: CoreLogic

The huge salary you need to earn to buy a home in Australia

“But there’s no chance they will be able to buy a home. By the time they are 25 a home is going to be a few million dollars.
“I had some money saved up, and I tried to find properties in Rowville, but they were too expensive and they are just going up and up.”
He bought a home for Siana in 2015, and he’s just settled on a $500,000 three-bedroom house for Ayla.
“They are nothing spectacular, they are older homes, but I got in there at the right time,” Mr Gatt said.
But time might be running out.
Leading Real Estate’s Adam Sacco said historically Sunbury had attracted a number of families looking to buy their kids a headstart — but many had now been being priced out.
“It has taken a hit as first-home buyers have taken up more of the market,” Mr Sacco said.
“And while first-home buyer incentives continue the price is only going to increase.”

Mums and dads buying pre-school kids homesThe couple, who live in Rowville, have bought the kids homes in Sunbury after realising they couldn’t afford to buy them a home in their own neighbourhood. Picture: Sarah Matray

CoreLogic Australian head of real estate Geoff White said their children’s housing future was a growing concern for parents.
“We all know the growth in the real estate market and people are always saying ‘I wonder how my kids will be able to afford to buy’,” Mr White said.
“And in recent years it has been the case that children are living at home longer because they can’t break into the real estate market.”
Despite signs Melbourne’s housing market is cooling after a five-year house price boom, the cyclic nature of the market suggests they will rise again.
“The market will always grow long term, despite the fact that we might not see growth now for a year or two, those stories of big growth will continue,” Mr White said.
“It’s a good move if you can afford to do it.”
While uncommon it wasn’t unheard of for parents to buy their young children a home, he said.

MORE: Melbourne market cool down tipped to continue well into next year

Sir Robert Menzies’ Kew home looks for popular vote at auction

‘They remember Mick Jagger and Jerry Hall’

Source link