Very few eight-year-olds think about owning a home. But Ruby McLellan (8), from Australia, does. That's why she collected all her pocket money and she can consider herself a real estate investor. This is reported by the Daily Mail.
Thus, Ruby and her two siblings Angus (14) and Lucy (13) saved 6,000 Australian dollars. They used the money two years ago as a down payment on a house worth $671,000 (about 406,000 euros). But they did not manage the purchase alone. The parents covered the remaining expenses.
Property Value Soars
With the purchase, the children could have shown the correct nose. Because, according to the Daily Mail, the value of the property has already increased: up to $960,000. Another point in favor: the rent for the 200 square meter house is higher than the mortgage.
The parents want to keep the house until Lucy and Angus are in their early 20s. They hope it will later be worth up to a million dollars.
Father Cam is CEO of a real estate investment company.
Cam, the children's father, is familiar with the topic because he is CEO of a real estate investment company. That's why he knows that in the future it will be difficult to afford a house: “Ten years from now, when our children start buying their own house, the down payment will be $200,000. Today's children will never be able to afford a house without the help of Mom and Dad”.
This is where the idea of buying a house for your children from a young age arises. It makes sense to “take a small down payment, buy a property, double its value, and then sell it,” Cam says.
In Europe, around 70 percent of people lived in their own home in 2020
A role model for Germany? According to Sparkasse, buyers should be able to pay at least 20 to 30 percent of the cost of a property with their own capital. “The greater your participation in the capital, the less credit you will have to request to finance yourself. And financing costs even less.”
In Europe, around 70 percent of people lived in their own home in 2020, as “AssCompact” writes. However, Germany is far below average. Here only half of the people live within their own four walls, the other half rent.
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