A major bank executive has revealed he needs help from his parents to buy a house in Sydney.
Ash Frenken, director of AMP subsidiary Citro, admitted he would struggle to buy a house where he wanted to live without support from the ‘Bank of Mum and Dad’.
The 34-year-old tenant said his parents recently moved from Melbourne to regional Victoria.
“Investing in property is a big challenge for people of my generation. I definitely need my parents’ help, which is not unusual for people my age,” Mr Frenken told Daily Mail Australia from Rio de Janeiro.
‘It’s definitely a challenge to buy something in Sydney, if I wanted to do that I would probably need the support of the people.
‘I would prefer not to have to ask my parents for help, but if they can, or if there is a way for them to do it that doesn’t impact themselves and their retirement, then that might be an option.’
Mr Frenken lives in Tamarama, on the beachfront, and works in Sydney’s CBD as head of Citro, a rewards scheme for Australians approaching retirement age.
He hopes to buy a house in Sydney’s eastern suburbs so he can maintain his social connections.
Ash Frenken, a director of a major bank, has revealed he needs help from his parents to buy a house in Sydney
Ash Frenken (third from right), the head of AMP subsidiary Citro, admitted he would struggle to buy a house where he wanted to live without the support of his parents
“I would prefer to stay in the same community where I live now, because community is very important,” he said.
‘That’s where I live now and I really like it. It’s one of the more expensive areas in Sydney to buy a house.’
The average house price in Tamarama of $5 million is more than three times the average house price in Sydney of $1.5 million.
Even with a 20 percent mortgage, he would need to earn $769,230 — more than double what the richest 1 percent earn — to be able to take out a loan on his own.
“Sydney is expensive, even the suburbs of Sydney still cost over a million dollars,” he said.
“Getting to 20 percent and saving over a million dollars is a challenge for anyone.
“It’s definitely a lot harder to be on your own, not just because of the capital and down payment required, but also because of being able to pay the loan repayments.”
Mr Frenken did not want to say what the salary was, but he did indicate that it was not ‘entry level’.
As a senior figure in the financial and technology world, Mr Frenken does not want to commute to work from the suburbs of Sydney.
“Sure, could I buy in a cheaper neighborhood? Yes,” he said.
Mr Frenken (in a white polo shirt) hopes to buy a house in Sydney’s eastern suburbs so he can maintain his social connections with his group of friends, including actor Tim Draxl (far right)
‘There is definitely a possibility for me to get into the real estate sector. Concessions will have to be made about where I live.’
But will he continue to rent so he can live where his friends live? After all, he can’t afford to buy a house in Sydney’s Eastern Suburbs yet?
“Unfortunately, I can’t do that and live where I want,” he said.
‘I currently rent, which gives me the opportunity to live wherever I want.
‘Right now, the community around me and the place I live in and the lifestyle I get from it are more important. That’s why I choose to rent.’
If he ultimately decides to buy, he’s okay with having to ask his parents for help with things like a 20 percent mortgage and mortgage insurance from the lender.
“If I had to pay in Sydney, maybe that’s something they should do,” he said.
‘Help can be many different things.’
The millennial achiever believes the baby boomers had it much easier.
“It was a little easier for the generation before us,” he said.
A high-flyer in financial and technology circles, Mr Frenken does not want to commute to work from a distant Sydney suburb if he eventually buys a house.