Aussie parents buy primary school kids their own apartments
A PAIR of Dingley Village primary school kids have become pre-teen property moguls after their parents bought them each a home for later in life.
Playground tycoons James Anagnostiadis, 7, and his sister Aiva, 10, have both had off-the-plan apartments bought in their names to be held in trust until they're old enough to move out of home.
Parents Barbara and Adam Anagnostiadis, who run a concrete pumping business, bought the apartments fearing by the time their children grew up they wouldn't be able to afford anything in the increasingly sought-after area.
"They do refer to them as 'my apartment'," Ms Anagnostiadis said.
"But I think they are too young to understand what it's really all about. It's just novel as we drive past the building now."
The two will get almost identical one-bedroom apartments, both with a price around $400,000.
"We have made a point of buying the same apartment number on the same floor in each building, so there's no disappointment later on in life," Ms Anagnostiadis said.
Watching friends and family struggling to make a start in the market today had motivated them, she said.
"We thought we'd have two young kids looking at $1 million for a first apartment," she said.
A tenant has been helping pay Aiva's mortgage for the past two years.
They bought the second apartment in the Ciel development by B Central at 670-672 Centre Rd, Bentleigh East, recently.
Beller real estate director Heath Thompson handled the sale and said it wasn't the first time he'd had parents buy to help out their children, but most had older kids.
"This scenario is probably a bit longer term than we normally see, but I think we are probably going to see a lot more of it," Mr Thompson said.
Most parents helping out their kids did so to give them a good starting point, he said.
"And it does come up that some don't want their kids living at home to 30," he added.
The Ciel development has a mixture of one, two and three-bedroom apartments.
Each comes with high ceilings, bright interiors and Miele appliances in the midst of a sought-after Bentleigh East hub at 670 Centre Rd, a short drive from the beaches of Bayside Melbourne.
Real Estate Institute of Victoria figures show Melbourne's median one-bedroom unit price, which includes apartments, have almost doubled from $197,000 in 2002 to $372,000 today.
REIV chief executive Gil King said the rises were a product of growing interest in Melbourne that was making affordable options more attractive.
"Strong price growth combined with high levels of interstate and overseas migration has changed the typical Australian concept of home ownership, with buyers now looking at affordable alternatives to the traditional quarter acre block," Mr King said.
Australian Housing and Urban Research Institute researcher associate professor Stephen Whelan co-authored a report into the impacts of parents providing assistance to their children entering the property market and said generous parents statistically improved their children's chances of breaking into the property market.
But they might also be pricing those with less affluent families out.
In research that he has updated continuously since 2015, and will shortly present to a conference of economists in Canberra, Mr Whelan said that a parental transfer of at least $5000 had a substantial impact.
"It doubled the likelihood of someone moving into first-home ownership," Mr Whelan said.
Another part of the study looked at inequality.
Mr Whelan said homeowners in Australia tended to be better off financially, which meant that home owning parents helping their children into the market could inadvertently help raise prices, making it harder for young buyers without parental assistance.
"And that exacerbated inequality of wealth, it helped with the accumulation of wealth," he said.