Insane sum average parent is gifting kids for property buys
For years the so-called 'bank of mum and dad' has been Australia's silent property giant, helping first-time buyers with home loans and financial lifelines.
Now the bank of mum and dad has become the 'gift of mum and dad' as recent research by Mozo Money showed 75 per cent of parents who help their kids buy a property don't want the money back, despite them forking out more than ever before.
There has been a significant shift in just how far parents are going to help their adult children to get into the market, as just four years ago only one third of parents didn't expect to be repaid.
As property prices have lifted by more than 50 per cent in five years, deposits have surged by an average of $66,000, according to Mozo research.
Mozo's personal finance expert Rachel Wastell said many young buyers are relying on parental support to bridge the deposit gap as Australian house prices have skyrocketed.
'This really shows how hard it's become for first-home buyers to climb onto the property ladder,' Ms Wastell said.
'In the past, parents might have given their kids a boost up and expected them to pay them back once they'd found their footing.
'But now, the bottom rungs of that property ladder are gone, and parents aren't just offering a hand, they're building those rungs themselves, often with no expectation of being repaid.'
Aussie parents are gifting on average $74,000 to their children, which has increased by $4,000 since 2021, Ms Wastell added.
Many parents went the extra mile and purchased a home for their child or co-purchased along with them.
'There's no doubt parents are stepping in where the market, and wages, have failed first time buyers, but it's also creating emotional and financial tensions,' Ms Wastell said.
Those who purchased a home for their children were spending an average of $405,000, while others who co-bought with their son or daughter spent around $252,000.
'It's one thing to help your kids, but using debt to do it is dangerous, parents could be trading short term generosity for long term financial concerns,' Ms Wastell said.
'We're seeing some parents delay retirement, dip into savings, or even rely on credit cards and loans to support their children,' she added.
Another common way to fund children was letting them stay at home rent free, which is giving adult children an average financial boost of $6,227.
While more parents are giving money, fewer are willing to downsize their homes to do so, the research showed.
In 2025, 77 per cent of parents said they wouldn't consider downsizing to help financially, up from 55 per cent in 2021, and only 3 per cent have actually downsized compared to 14 per cent four years ago.
'With property prices skyrocketing, it could be that many Aussie parents are 'equity rich' and have the confidence to gift without changing their lifestyle,' Ms Wastell said.
'Aussie parents are clearly generous, but in 2025 they're drawing the line at giving up the family home, especially when that home has most likely become their biggest financial asset.'
'Before offering that helping hand, it's crucial to make sure you're not relying on high interest debt and that your own financial future is secure.'
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Chiodo insisted to this masthead that his and Anderson's use of the same marketing strategy was not a joint plan. Instead, he said: 'David was trying to convince Ferras to allocate a greater portion [of customers] to his fund in order to cover David's need for the redemption.' Anderson and Chiodo would pay out $100 million – or 10 per cent of the money invested with them – to their marketing crew, who now drove Bentleys and other flash cars and had upgraded to lovely homes in Melbourne's better northern suburbs. As the funds swelled with super savings, both men allegedly went on a spending spree using other people's money. Anderson bought a dream home in Melbourne's leafy Hawthorn overlooking the Yarra River and pumped millions into fine dining restaurants via a business arrangement with celebrity chef Scott Pickett and, separately, set up two restaurants in inner Melbourne, one a South-east Asian eatery with 18 craft beers on tap. Chiodo would burn millions pulling together a portfolio of wish-list luxury development proposals in K'gari, Fiji and Venice, rent a corporate box at the MCG and host events with sporting stars like Floyd Mayweather and Josh Giddey. When ASIC came knocking on Chiodo's door in late 2023, Anderson was suddenly focused on First Guardian's investment in the Chiodo fund. In May 2024 Anderson attempted to sell the investment to an American group which never paid, and the investment remained within the Shield fund. Whether that investment, like many others made by Anderson and Chiodo, will ever be reclaimed for investors remains to be seen. Loading As for the property in Port Douglas, despite Chiodo claiming to have spent more than $70 million on works to build the resort, the project was never developed. Earlier this year receivers appointed agents to sell the property on behalf of its lenders. No return is expected for Chiodo's investors from the sale.
