Tag: Home loan

Who benefits from covid?

While most of the world suffers death, illness, job losses, and pay cuts, the super rich are getting richer. In fact, billionaires’ wealth has hit a new high, increasing by more than a quarter during the height of the pandemic. Just over two thousand people now control more than ten trillion dollars.

Ten trillion dollars is around half of the United States GDP. Just under the entire GDP of China, or double the GDP of Japan.

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Should I rely on the Bank of Mum and Dad? / Should I lend money to my kids?

A worrying new report names the so-called ‘Bank of Mum and Dad’ as Australia’s 5th largest lender. This ‘Bank’ – Aussie parents – have collectively lent their sons and daughters more than a whopping $65 billion dollars. Almost a third of parents now help their kids buy a home. The average amount ‘lent’ is $64,000. Why the scare quotes around ‘lent’? Because in two-thirds of cases, Mum and Dad don’t expect to be repaid. (In my book, that’s called a gift, not a loan).

But should you rely on the Bank of Mum and Dad? And, Mums and Dads – should you lend to your kids?

This post – a bumper issue that is the first to tackle two questions – is not only for those considering lending money within families, but also for those who have or will buy a home without family support.
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