Morning Briefing: Baby boomers should not have to shoulder affordability burden

Parents should not have to risk their financial security to help their children onto the property ladder, CEO says... Real estate body raises complaints concerns...

Morning Briefing: Baby boomers should not have to shoulder affordability burden
Baby boomers should not have to shoulder affordability burden
The CEO of a government-backed lender which targets first home buyers said parents should not have to risk their financial security to help their children onto the property ladder.

“Parents are risking their personal financial security by backing their children into home ownership,” the CEO of South Australian HomeStart Finance, John Oliver, has said. 

“If there is a change of circumstances and a child can’t make repayments, it is the parents’ assets that are on the line for the portion they have guaranteed. This could mean the lender will allocate some of the parent’s income to repaying the debt, or in the worst case scenario, the parents could lose the family home.”

Oliver’s comments come after the outgoing Reserve Bank governor, Glenn Stevens, said in an interview with News Corp that the only way for young people to get onto the property ladder in Australia’s most heated housing market, Sydney, is with the help of their parents.

Real estate body raises complaints concerns
A peak real estate body has believes buyers may be misled buy NSW Fair Trading’s plans to publicly name and shame companies that generate large amounts of complaints.

Later this week will see the regulator publish the first edition of its new complaints register, which will be updated each month with the names of businesses that generate 10 or more complaints in the previous month.

NSW Fair Trading said complaints will have to be verified before a business is placed on the register and NSW Fair Trading commissioner Rob Stowe said it will benefit the public.

“This greater transparency gives consumers a more informed choice before they buy and traders who find themselves on the register will have a strong incentive to improve business practices,” Stowe said.

(Your Investment Property)

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