How does parental assistance impact the affordability and accessibility of housing for first-time buyers? Do alternative financing options offered by parents create an imbalance in the housing market? As the fifth biggest lender in Australia, the bank of mum and dad has become a viable option for financing, particularly for first home buyers.

We take a closer look at this option with the guidance of our expert guest, Jenny Fagg — CEO and co-founder of 2Be. Jenny, who we are honoured to be here with today, provides valuable insights into the various financing options available to first home buyers and offers a balanced perspective on the potential advantages and considerations of parental assistance.

Understand the complexities behind how parental support can influence your home-buying journey as we delve into its effects on affordability and accessibility. We explore the ways in which financial help from parents can help overcome rising property prices and stringent lending criteria. At the same time, we discuss the potential implications of alternative financing options, such as an imbalance in the housing market.

If you're a first home buyer eager to understand how your parents can help you achieve your homeownership dreams, this episode is a must-listen. Gain a comprehensive understanding of how parental support can influence your home-buying journey and explore the potential benefits and challenges associated with it.

Episode Highlights:

00:00 - Welcome

02:47 - What is 2Be?

04:18 - Is it only the really wealthy who can get help from the bank of mum and dad?

06:35 - Borrowing against investment properties

10:45 - Explaining a reverse mortgage and the repayment options for the bank of mum and dad

14:54 - Paying back the parents – what are the terms?

20:04 - The opportunity cost of not getting into the market earlier

24:44 - Six tips for understanding the risks of parents lending to their children

36:43 - What if something unforeseen happens to the parents and they have to sell?

42:54 - Maximum proportion of the value that Jenny would offer access to out of the program

45:21 - What Jenny wishes she knew as a first home buyer

About Jenny Fagg:

Jenny Fagg is one of the founders of 2Be Finance Pty Ltd, a financing company that offers home equity loans for over 55s. Prior to this, Jenny served as CEO and Managing Director of ANZ National Bank Limited. She holds a PhD in Management (Risk) and a Bachelor of Economics (First Class Honours in Organisational Psychology).

Connect with Jenny Fagg:

• Follow Jenny on LinkedIn: https://www.linkedin.com/in/jenny-fagg-74521951
• Visit their website: https://www.2be.com.au/

Resources mentioned in this episode:

• Make the best bank of mum and dad decision: https://www.2be.com.au/education-documents
• Setting up the Bank of Mum and Dad to Success: https://www.2be.com.au/bank-of-mum-dad/setting-up-the-bank-of-mum-and-dad-for-success
• Financial Firepower Calculator https://www.2be.com.au/calculators/financial-firepower-form

Resources:

• FREE TRAINING: How to make an educated decision so you buy your first home with the right amount of debt https://homebuyeracademy.com.au/webinar
• Visit our website https://www.homebuyeracademy.com.au/
• Learn how to buy property without making a mistake with our 10-step online course for first time home buyers https://homebuyeracademy.com.au/YFHBG
• If you have any questions or would like to be featured on our show, contact us at: Your First Home Buyer Guide Podcast [email protected]
• Looking for a Sydney Buyers Agent? https://www.gooddeeds.com.au
• Work with Veronica: https://www.veronicamorgan.com.au
• Looking for a Brisbane Buyers Agent? https://www.propertypursuit.com.au/
• Work with Meighan: https://www.linkedin.com/in/meighanwells/

If you enjoyed today’s podcast, don’t forget to subscribe, rate, and share the show! There’s more to come, so we hope to have you along with us on this journey!

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