Keiran Mannion

‘Stressful’: $88k savings won’t buy home

PHOTO: Keiran Mannion

Despite saving hard since she was 14, this woman’s huge chunk of money wasn’t enough to buy a house on her own, so she looked elsewhere for help.

Keiran Mannion has been saving for her own home since she was 14 and scored her first job at McDonalds.

During university, she worked four jobs including at a couple of cafes, and since graduating has taken up a role in PR.

The 25-year-old saved a whopping $88,000 but it still wasn’t enough to buy a property in Sydney.

“I know a lot of people my age travel a lot and I haven’t done a huge amount of travel so that’s probably an area of a sacrifice,” she told news.com.au.

“I did have a Europe trip planned last year and that was a nice boost to savings as I was able to get a refund for flights and trips.”

Despite her five figure savings, Ms Mannon had to turn to Australia’s ninth largest lender – the bank of mum and dad to make her home ownership dream come true.

Parents are chucking in on average more than $89,000 to help their kids into the property market, which is an increase of nearly 20 per cent in the past 12 months, analysis from Digital Finance Analytics (DFA) found.

The bank of mum and dad is bigger than well known lenders such as HSBC, AMP and Bank of Queensland, with around $34 billion in loans, according to DFA.

 

Matching her savings

For Ms Mannion, her parents gave her $75,000 towards a house deposit and combined with her savings she had $150,000 in total, with $13,000 left over to deck out her home and keep an emergency pot of savings.

“In Sydney its incredibly tough to do it yourself otherwise. If I wasn’t able to have the support of my parents I definitely wouldn’t have been able to purchase in Sydney and I would have had to look further afield,” she said.

With property prices skyrocketing, particularly in Sydney where the median house value jumped by $50,000 in March alone when Ms Mannion was searching, she said the experience of buying a home was “overwhelming”.

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