By Graeme Salt
My Mum’s death will help reshape where and what we purchase, who buys and how much they pay.
Her passing is part of the great wealth transition, where assets are being transferred from baby boomers to their kids – helping them get on the property ladder.
According to research by demographer Bernard Salt (he comes from the long-lost clever branch of the family), there’s about $4-6trn in Australia which is likely to be progressively spent and/or transferred over coming decades.
This will reshape the property market as the wealth will be democratised between siblings.
My Mum died a couple of years ago and my sister and I are finalising her estate. We get half each. Imagine how that wealth would be diluted and spread around if there were four or five kids.
The oldest Boomer turns 80 in 2026 and there are currently 4.5 million Boomers in Australia. According to distant cousin Salt, this year 33,000 are likely to die – passing on their wealth.
Increasingly, I am seeing this wealth transfer impact my clients’ lives with initiatives such as:
- Gifts to buy a home
- Offering guarantees so that buyers have sufficient equity
- Early inheritances
- Inter-family loans (the bank of Mum and Dad)
- Lump sum inheritances
In our case, I will probably put my inheritance to add to my property portfolio, buying a place I will ultimately live in – while my sister will use her funds as part of her retirement strategy (but not property).
If you would like to discuss your situation and how you get on the property ladder, feel free to get in touch.
Graeme Salt is an award-winning mortgage broker. For a no-obligations consultation on your home loan needs, please contact him on 02 9922 5055