Sydney Couple Invests in Daughter’s Future with Property Purchase
A couple from Sydney’s Northern Beaches, Mark and Alana, have made headlines for purchasing a one-bedroom apartment valued at $1 million for their four-year-old daughter, Willoughby. Rather than waiting years to pass down an inheritance, the couple sees this investment as a proactive measure to ensure their daughter’s financial security.
Mark, who works in cybersecurity sales alongside Alana, likens this property purchase to an "insurance policy" for their child’s future. He stated, "I wanted to do something now, so that no matter what happens to me, there will be something for my daughter one day." He emphasised that this move is about providing a safety net, with the apartment likely to generate rental income over time, offering financial assurance for their family.
The apartment is situated in the upcoming Willoughby Grounds development, with completion slated for August. Mark and Alana, who previously resided in Willoughby, consider the decision a sign that resonates with their daughter’s name.
Mark’s background differs from that of many property owners. Coming from humble beginnings, he recalls not receiving financial assistance from his parents for his own first property. As a result, he views this apartment as the primary inheritance for his daughter, preferring to empower her financially when needed rather than adhering to the traditional notion of waiting for an "inheritance" after their passing. "Waiting for someone to die is the old way of thinking," he stated, advocating for providing support while their child is still young.
This purchase reflects a broader trend among parents who are stepping in to assist their children in navigating a rising property market. According to research by Mozo, the average financial gift from parents to their children for home deposits now stands at approximately $74,040, with around three-quarters of parents not expecting repayment. Additionally, a study by Australian Seniors revealed that 70% of parents over 50 wish to provide early inheritances to help their children.
Ray White Lower North Shore director Tim Abbott observed that while it is not common for parents to buy properties outright for their children, many are contributing to deposits. He remarked, "If people are fortunate enough to receive family assistance in entering the property market, it’s certainly advantageous." As property prices continue to rise, parents are keen to help their children secure a foothold in the market before costs escalate further.
Mark and Alana plan to rent the apartment out, which is projected to yield around $850 weekly. Willoughby will have flexibility in the future—whether she chooses to occupy the apartment, sell it, or use it to support her education or purchase her first home.
While the couple acknowledges their good fortune in being able to make such a purchase, they also stress the sacrifices required. Mark mentioned that they need to find an additional $2,500 each month to cover mortgage payments and rent, a challenge for any family. Nevertheless, he believes that sacrificing now is more manageable than attempting to do so further down the line.
Despite their ambitious decision, Mark notes their daughter’s reaction has been typically four-year-old. "We talk to her about these things, but does she remember it? Sometimes she just gets confused about what happened at daycare," he said, chuckling at the fleeting nature of her understanding of the situation.
As more parents like Mark and Alana take steps to support their children in an increasingly competitive property landscape, this couple stands out as a unique example of forward-thinking financial planning, demonstrating the evolving approaches to wealth and inheritance in Australia.
