As your kids become adults, how have they fared financially in Australia?

[FirstWorldProblems 1,590]

I picked this username as a reminder to myself to not get anxious about things that really aren't a bid deal compared to the challenges that many people face in life.  But this concern just won't go away and I'd be keen to hear some reassuring experiences from others.

It's rather a niche question.   For those of you who have emigrated with children to one of the metropolitan areas with notoriously high property prices, and those children have done what children have a habit of doing and turning into adults who then embark on their own life, how have they fared?  Have they been able to get on the property ladder?  After paying the bills is there enough left over for them to enjoy a decent quality of life?

It won't be an option for us to go to a lower cost area.  We'll be moving first and foremost to be with family in the Sydney suburbs, and whilst somewhere like Newcastle might only be a few hours drive away, and whilst Adelaide is certainly a lot shorter flight than Birmingham, Plan-A is to be proximate to family and see them once or twice a week. 

 

[Quoll 6,092]

I have two sons. One emigrated accidentally back to UK, he's doing very nicely. The other was, sadly, led by "love" away from a full medical scholarship which should have seen him do very nicely. Since then, he's built a couple of homes in the bush (ie nobody's planning regulations) which subsequently burned in a bushfire despite all his elaborate precautions.  The "Love" decided she fancied her best friends husband (his best mate) and her incessant need to control their daughters has been and continues to be horrific.  He was fortunate that my father left both of my sons a good amount of money which has enabled him to buy a country property outright. He had our granny flat in town when he needed it. He's always managed to find work but it's not a career and he's not bothered by that. He's got a reputation for being an intelligent and very hard working chap - doesn't pay much but he seems happy. We are having to help him with legal fees because his ex has kidnapped his kids - fortunately we can manage that but he wouldn't be able to do it without our help. I think if you are prepared to work hard, do anything and maybe eschew materialism you can make a go of it. I've friends whose kids have slotted into the public service ok, others have kids who've done apprenticeships and they're doing nicely, most are still renting but a few have had a leg up from parents or inheritances and been able to buy/get a mortgage. A couple have kids with serious mental health issues and they're struggling with non functional kids still at home in their 30/40s and no end in sight. Son #2 wouldn't have had enough to have bought in Canberra but hours away from nowhere, the land is cheaper! Son #1 has a good job, as does his wife and they've been able to buy a nice place in London. 

Must say, I wouldn't like to be trying to get on the property ladder here at the moment. It's certainly the topic of conversation in my social groups - one friend was recently helping her daughter find a new place. The $500k mortgage she thought she could muster wouldn't even buy a decent size single bed unit and she was depressed about that. 

[FirstWorldProblems 1,590]

Thanks @Quoll I appreciate your candor. That sounds like some pretty challenging circumstances at times!  I thought kids were meant to get easy once they’d grown up

[Ausvisitor 747]

For a decent Sydney suburb you will need $2.5m at least for a pretty run down 3 bed house. Nearer $4m for a decent "turnkey" 4 bed option.

So assuming that's you now sorted the family property, it's time to help the kids with theirs.

A 1-bed that isn't completely a death trap in somewhere they will want to live (inner west) will be a minimum of $650k and more likely $750k

To afford that with a $100k deposit you need a salary approaching $130k a year - so you can see it's not a simple option

[ali 16,478]

My two are now adults, my daughter 28  lives with her partner 29 and currently rent as he went back to Uni (career change) and in his final year.  He only works part time during term time.  They rent an apartment in South Perth and will be looking to buy a home next year.  They'd love to stay in the area they are now but property prices may be a little too expensive for them, however, they will be able to afford something in a nice area.  My son 23 and his girlfriend 21 both live at home and are saving - rental prices are quite high a the moment and i think they'd struggle financially without some savings behind them. 

[Eera 337]

Not quite the same boat as my own are in high school, but I'm thinking of my friends with adult children - I'm having trouble thinking of many who haven't moved away from their hometown.  They're all doing OK, but they're doing it in other cities and countries. With them being the age when they can get working holiday visas or have dual citizenship they're taking full advantage, time will tell if they choose to come back to be near to their parents.

[Blue Flu 893]

The 'kids' around me are all doing very well . A young girl, P plater drives a new MG, other side couple early twenties bought the house , drive a VW Caddy. Noted a girl not more than eighteen dropping a $50 note into the cap of a homeless person a few months back in Northbridge. The list of affluence goes on. (

Not too much sign outwardly of hardship among young in Perth and especially inner city, who frequent cafes, restaurants and have plenty of free time. I'd say the kids are alright. More outward signs of affluence than when I was at their stage in life. 

 

[Toots 11,505]

Our two sons are well into their 30s.  Both own 1 bedroom flats in Sydney's inner west.  One in Annandale and the other in Enmore.  One has returned from working for a few years overseas, married last year in Sydney the other is still working overseas.  Both their flats are in older buildings and were in a pretty sorry state when they bought them at least 10 years ago.  My husband and his mates totally renovated them for the lads so they are now very comfortable if on the small side.  Elder son and wife live in theirs but had it rented out while overseas.  Younger son's is rented out.  Most of their friends seem to be getting on fine apart from a couple of their friends who haven't been well for years due to mental health issues caused by drug taking in their late teens.  A terrible waste of young lives.

[Marisawright 10,051]

18 hours ago, FirstWorldProblems said:

It's rather a niche question.   For those of you who have emigrated with children to one of the metropolitan areas with notoriously high property prices, and those children have done what children have a habit of doing and turning into adults who then embark on their own life, how have they fared?  Have they been able to get on the property ladder?  After paying the bills is there enough left over for them to enjoy a decent quality of life?

It won't be an option for us to go to a lower cost area.  ...

To me, this sounds like a strange question. It's assuming that your kids will want to buy where you're settling.   Looking at friends my age in Sydney and Melbourne, I can't think of any whose kids bought in the same suburb or even close by.    Either they want to live in a trendy inner-city area, or when they're ready to start a family, they'll move to the outer suburbs where they can afford something.   

Quite a few of them are rentvestors (renting their home but they do own an investment property).  However even then, their rented home is in the "young" suburbs, not where their parents live.

Edited March 15 by Marisawright

[Tychen 30]

2 hours ago, Marisawright said:

To me, this sounds like a strange question. It's assuming that your kids will want to buy where you're settling.   Looking at friends my age in Sydney and Melbourne, I can't think of any whose kids bought in the same suburb or even close by.    Either they want to live in a trendy inner-city area, or when they're ready to start a family, they'll move to the outer suburbs where they can afford something.   

Quite a few of them are rentvestors (renting their home but they do own an investment property).  However even then, their rented home is in the "young" suburbs, not where their parents live.

Or (you could hope) they'll be able to buy somewhere nicer... it's not uncommon to hear stories here of migrant kids who find opportunities through the school system to get up the ladder and end up doing much better than their parents. Social mobility isn't quite dead.

[FirstWorldProblems 1,590]

5 hours ago, Marisawright said:

To me, this sounds like a strange question. It's assuming that your kids will want to buy where you're settling.   Looking at friends my age in Sydney and Melbourne, I can't think of any whose kids bought in the same suburb or even close by.    Either they want to live in a trendy inner-city area, or when they're ready to start a family, they'll move to the outer suburbs where they can afford something.   

Quite a few of them are rentvestors (renting their home but they do own an investment property).  However even then, their rented home is in the "young" suburbs, not where their parents live.

Oh no, I don't want them that close.  They'll be popping in all the time!  Half an hour is a good distance IMO

[Melbpom 334]

My youngest is in his mid 20's, born in Australia, went to uni locally and now has a good job in engineering. He has a large group of friends that he's known from school. All of them have professional jobs and are living at home while saving madly for house deposits. It seems to be the norm here and something you might have to plan for.

[Bulya 2,689]

24 yr old daughter applied for a job last week as she was somewhat bored at the business advisory accountancy firm and successful today.  $60k to $70k increase will help with the horse and cat bills..

[FirstWorldProblems 1,590]

Thank you everyone for sharing your experiences.  I appreciate it.

I have reflected and come to the conclusion that an early retirement is an ambition I can now remove from my goals.  Oh well....

[Quoll 6,092]

6 hours ago, FirstWorldProblems said:

Thank you everyone for sharing your experiences.  I appreciate it.

I have reflected and come to the conclusion that an early retirement is an ambition I can now remove from my goals.  Oh well....

Oh yeah, I'd certainly remove the early retirement goal. Some of us certainly managed it but those were different times!  Re your kids, don't be in the least suprised if they go overseas and make their lives thousands of Miles away from you - it's  what you did to your family so it's the model they are used to after all. 

[Blue Flu 893]

On 17/03/2023 at 03:16, Melbpom said:

My youngest is in his mid 20's, born in Australia, went to uni locally and now has a good job in engineering. He has a large group of friends that he's known from school. All of them have professional jobs and are living at home while saving madly for house deposits. It seems to be the norm here and something you might have to plan for.

An example of the changing fortunes within Australia. Previous generations going back to last century left home usually after education, if not before and experienced the world, after a few years working and saving. Life was far simpler and Australia had clear living advantages over many other countries.