New research highlights growing role of intergenerational support in property and finances
More than three-quarters of Australians are planning to bequeath property to their children, according a new report.
The latest Household Budget Barometer report from Compare the Market, based on a survey of 3,006 individuals, indicates that 62% of Australians with children expect to transfer at least one property to their offspring, while an additional 14% plan to pass on more than one property upon their death.
In addition to property, 17% of respondents intend to leave an inheritance of money, with the median sum reported at $250,000. The findings also reveal that 42% of Australians surveyed have established a will.
For mortgage brokers, these trends may drive greater demand for guidance on property succession, estate planning, and structuring loans to facilitate family support. Brokers are likely to play a key role in helping clients navigate the complexities of intergenerational property transfers and inheritance, ensuring compliance and the best outcomes for all parties involved.
“These findings signal issues with Australia’s broader economic climate,” said David Koch (pictured right), economic director at Compare the Market. “As some lucky young Australians benefit from the passing intergenerational wealth, we are seeing the socioeconomic gap widen between the haves and have nots.
“While the government has chipped in with energy and childcare rebates, the most meaningful support has come from individuals supporting their families. Baby Boomers are often blamed for fuelling inflation – yet are a key helping hand for younger generations to get ahead in life, from being able to get in the property market, to having more savings in the bank.
“But it shouldn’t be up to everyday Aussies to carry such a heavy load alone. We need stronger action from governments and regulators to step in and hold companies to account when price hikes go too far. This isn’t a fight we can afford to lose.”
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