Young Aussie reveals the grim, ‘bittersweet’ reality of how she was able to buy her first property – and it highlights an alarming trend on the rise in Australia

A first-time homebuyer has opened up about the grim reality of trying to break into the property market, admitting she had to wait for the ‘bittersweet’ gift of family inheritance before she could buy a property.

Abby Rose Brandwood, 31, and her partner Zachary, 22, had saved $20,000 for their first home and were pre-qualified to purchase a home under the First Home Guarantee Scheme, where the government actually underwrites your home loan.

But the Gold Coast couple still needed at least $60,000 to $70,000 to enter the local housing market with a 5 to 10 percent down payment.

Abby, who works as a midwife, admits that she ‘never set out to save for a mortgage for years because she felt it was so out of reach’.

“Especially as a mature student working unpaid internships, living away from home, paying rent, having fixed costs, living a life and maintaining relationships, I found it increasingly difficult to even consider saving for a home loan,” she told Daily Mail Australia. .

“The short-term goal was to save for the next car service, the next rental bond or the next emergency.”

But when Abby’s beloved grandparents, Keith and Celia Brandwood, died within a year of each other, her father decided to give part of his inheritance to her and her brother so they could be “set up” for life.

“When my father told me this was his plan on behalf of my grandparents, it was bittersweet,” Ms. Brandwood said.

“We had to lose two of the most generous, kind and beautiful people to receive such a gift.

“What felt like a pipe dream to own a piece of land was now within reach and it’s because of them.”

Her partner Zachary, who has worked as a chef since he was 14 and was raised by his mother, has always had the goal of having his own place.

“He already had a share to put on the table for the deposit we needed,” Abby said.

“Buying together has been the smart option, in terms of lending, repayment and asset creation.”

But Ms Brandwood is under no illusions that she and Zachary would not have been able to set foot on the property ladder without the help of her grandparents’ estate.

“They were always generous people who worked very, very hard as young adults while raising my father and aunt,” she added.

Abby, who works as a midwife, admits that for years she “never set out to save for a mortgage because she felt it was so out of reach.”

Abby is under no illusions that she and Zachary would not have been able to set foot on the property ladder without the help of her grandparents’ estate (Picture: Abby’s beloved grandparents, Celia and Keith Brandwood)

“They owned a business, invested, managed a property portfolio and did all that after initially moving to Australia from Britain with two young babies, with no family around for support.”

The couple currently rents separately in share houses in Broadbeach.

Mrs. Brandwood pays $450 a week and Zachary $200 in a four-bedroom house.

Previously, only studio or one-bedroom homes outside of desirable neighborhoods were within reach.

But now, with their combined savings and her inheritance, they have a budget of about $700,000.

They hope to buy a two- or three-bedroom home on the Gold Coast early next year.

Ma Brandwood said many of her friends and colleagues faced similar situations where they were unable to purchase property without help from Mom and Dad’s bank.

“I have generous parents who, without question, live within their means, work very hard for the life they have and have always managed to support myself and my brother while they went to college and lived away from home,” she said.

“They showed us the desire and work ethic to move forward, but that doesn’t seem to be enough anymore.

‘We just need a foot in the door, that first step must be more accessible. The cost of living is increasing, making saving increasingly difficult.

“Life is not for toiling just to pay off a mortgage, life is for living – so how can we do both?”

Ms Brandwood is certainly not alone: ​​experts in the field are increasingly seeing homebuyers waiting for their inheritance before they can purchase a property – and there’s even a name for it.

More and more homebuyers are waiting for their inheritance before they can buy a home (stock image from Aussies)

(photo: Tenants line up for an inspection in Sydney’s Bondi)

Money.com.au Home lending expert Mansour Soltani told Daily Mail Australia that ‘inheritance dependency’ is becoming increasingly common among first home buyers.

“There is certainly a generational transfer of wealth taking place and this will only become more common as ownership becomes less feasible for a typical borrower between the ages of 20 and 40,” he said.

“Money gifts of $400,000 or more from parents or inheritances from grandparents are not uncommon.”

Mr Soltani said lenders take an inheritance into account when people apply for a loan and typically treat it as a cash gift.

“(But they) need a legal declaration stating that their money transfer is a gift or inheritance, and not a loan,” he said.

‘This means you have to save a deposit yourself and can’t just rely on an inheritance to cover it.’

Mr Soltani added that even though waiting for the inheritance has become a popular move, he warned it could be “risky”.

“People might stop saving altogether, assuming a windfall is guaranteed,” he said.

‘Besides, receiving an inheritance, even a large one, does not guarantee that the bank will give you a mortgage.

‘You have to show that you can save money yourself and that you are financially responsible.

‘Moral of the story: access to capital is not enough; banks must see that you can handle money responsibly and deal with long-term debts.’

Founder of Buyers’ Collective Jack Freestone has also noticed the trend of buyers depending on an inheritance as part of their purchasing strategy.

“With housing affordability a major challenge, it is becoming a crucial financial resource for many first-time buyers who would otherwise be unable to bridge the gap between their savings and the required down payment,” he said.

Mr Freestone said the cost of living and rising house prices had left first home buyers unable to save.

“Many are poor, even with double incomes and strict budgeting, making it almost impossible to acquire home ownership without additional support such as inheritances or family assistance,” he said.

But he said waiting for an inheritance could bring issues that people should be aware of, such as “frustration and uncertainty” for buyers.

“There’s also the emotional complexity of tying such an important financial goal to a family event like death.”