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Buying with my parents - intergenerational living & home lending

A growing trend?

Intergenerational living refers to multiple generations of a family choosing to live under the same roof.

This could be parents and their adult children, or even extended family members like aunts, uncles, and grandparents.

The lending aspect comes into play when these family members pool their resources to purchase a property together.

Why is it Gaining Popularity?

There are several reasons why this trend is on the rise:

Economic Factors: With the cost of living soaring, many families are looking for ways to minimize mortgages or even upscale to a better neighborhood. By combining resources, they can achieve this.

Living is expensive: Living inter-generationally is something a lot of cultures have practised for generations, but in New Zealand, a lot of young families, with two parents working, are finding support from their parents for childcare in particular, spreading the load across more adults.

Security and Companionship: The older generation, in particular, often seeks the security and companionship that comes with living with family. It provides them with a sense of safety and reduces feelings of isolation.

A Real-Life Example

To give you a clearer picture, let's consider a recent case we handled.

A couple, both on superannuation, had just sold their property and had NZD 400,000 to invest in a new home.

Their daughter, a full-time worker with a substantial KiwiSaver account, wanted to buy a home too.

Individually, neither party could afford the kind of property they desired. However, by pooling their resources, they could.

This arrangement offered multiple benefits: proximity to medical care for the parents and childcare support for the daughter's children.

A win-win for all!

Beyond Parent-Child Collaborations

While parents and their children buying together is common, we're also seeing a lot more collaborations between siblings or siblings and parents.

The younger generation, with its steady income, can offset the older generation's potential lack of income.

Conversely, the older generation's larger deposits can alleviate the younger generation's deposit constraints.

Is it right for you?

If the idea of intergenerational living and lending resonates with you, it's worth exploring.

It's not just about the financial benefits; it's also about building stronger family bonds and creating a supportive living environment.

If you're considering this option or just want to learn more, don't hesitate to get in touch. At My Mortgage, we're here to guide you, offering tailored solutions for you and your family's unique needs. Book in a call with one of our Team to chat about the ins and outs of buying your next home together.

In the world of mortgages and home buying, collaboration can be the key to unlocking your dream home!


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