How to plan and help your child buy property in Sydney
As we discussed in Part 1, the ongoing housing crisis is having a major impact on first-home buyers — and many young adults are turning to the Bank of Mum and Dad to get onto the property ladder.
As Sydney-based buyer’s agents, the Rose & Jones Property Pty Ltd team regularly hears the same question from parents:
“How can I help my children afford property in the future?”
It’s a fair concern. With Sydney’s median dwelling value currently sitting at approximately $1.24 million (as at October 2025), many parents fear their children may be priced out of the market entirely.
And while some families can afford to buy a home outright for their children, that’s not the reality for most.
The good news? There are practical steps you can take now to safeguard your child’s property ambitions — without compromising your own financial security.
Here’s how to future-proof your kids’ ability to buy property in Sydney, with insights from the team at Rose & Jones.
Secure your financial position first
At Rose & Jones, we always advise clients to prioritise their own financial wellbeing before offering financial support to children.
As financial adviser Stuart Wemyss of Prosolution Private Clients puts it:
“The stronger your financial position is, the more likely you’ll have surplus wealth — which you can use to help your children in the future.”
Think of it like the oxygen mask rule: secure your own first, then assist others.
Helping your kids buy property in Sydney
When your children are young, the focus is on meeting their immediate needs — food, safety, education, and a roof over their heads. But as they grow, Byron Rose says the question naturally shifts:
“You start to wonder, given the property market in Sydney, will they ever be able to buy a house?”
Byron believes simply telling your kids to “start saving” when they begin working may be too late.
“Families need to think long term — invest early, teach kids about making money, and get proper financial advice,” he says.
“You don’t have to break the bank. Start small — maybe $1,000 — and keep adding to it each year. That nest egg compounds, and in 20-25 years, you may have a robust amount that can help springboard your child into their first property.”
Teach money and property skills early
Some of the most valuable help isn’t financial — it’s educational.
Encouraging financial literacy from a young age gives kids the confidence to make smart decisions later on.
Here’s how to start:
- Open savings accounts with specific goals set. Offer to match their savings (e.g. for every $5,000 they save, you add $5,000).
- Teach budgeting and investing basics. Involve them in discussions with your financial adviser so they understand investing, saving, and compound interest.
- Involve teens in property learning. Look through listings together, attend open homes, and show them how to estimate costs like stamp duty and mortgage repayments.
- Leverage available programs. The First Home Super Saver Scheme (FHSSS) and various state-based grants can help first-home buyers — and we help clients factor these into their broader property strategies.
“Ideally, your kids won’t touch that early investment — they’ll save separately from their own income,” says Byron. “Then, as a parent, you can help with a deposit so they avoid paying mortgage insurance. It’s technically part of their inheritance — just received a little earlier.”
Leverage the ‘Bank of Mum and Dad’ — strategically
Australia’s unofficial fifth-largest lender is more relevant than ever in Sydney’s Eastern Suburbs. From gifted deposits to guarantor loans, many parents are stepping in to help their children buy property.
But this kind of support can be complex — and may carry risks. Here are the most common ways parents are helping, and what to consider.
💰 1. Providing a loan
Lending money to your child to top up their deposit is an increasingly popular option.
✅ Tip: Document the amount formally as a loan, not a gift, and seek legal advice to protect all parties.
🎁 2. Gifting deposits
A gifted deposit can help your child avoid Lenders Mortgage Insurance (LMI) and increase borrowing capacity.
Some lenders require the gift to remain in the recipient’s account for at least three months as proof of “genuine savings.”
⚠️ Note: Gifting more than $10,000 per year (or $30,000 over five years) may affect Centrelink pension eligibility.
✅ Tip: Clearly document any gifts and seek legal advice — particularly if there’s a risk of future family law disputes.
🏦 3. Acting as a guarantor (Family Pledge)
You can use equity in your own home to guarantee your child’s loan, helping them avoid LMI without handing over cash.
However, if your child defaults, you become liable for repayments, which can affect your borrowing power.
✅ Tip: Work with your broker to create an exit strategy — once the loan-to-value ratio drops below 80%, the guarantee can often be released.
🏘️ 4. Buying property together (Joint or Trust Ownership)
Co-purchasing a property or holding it in a trust can be an effective long-term wealth transfer strategy.
It’s ideal for parents looking to share the costs and control, but requires professional advice on stamp duty, tax, and ownership structure.
✅ Tip: At Rose & Jones, we collaborate with tax and legal advisers to ensure the right setup from day one.
🏡 5. Gifting or purchasing property on their behalf
You can gift a property outright; however, for Capital Gains Tax (CGT) purposes, the ATO treats it as if you sold the property at its market value.
Alternatively, some parents buy an investment property now — benefiting from current capital growth — with the intention of gifting or selling it to their child later.
This strategy is particularly powerful in high-growth suburbs such as Clovelly, Randwick, and Kensington, where demand remains strong.
Summary: What parents can do now
Strategy | Pros | Considerations |
Gifted Deposit | Simple, tax-free for recipient, fast-tracks purchase | Centrelink implications, cashflow impact, documentation |
Guarantor Loan | No cash upfront, avoids LMI | Shared liability, reduced borrowing capacity |
Joint Purchase / Trust | Shared control, long-term tax planning | Complex setup, potential CGT |
Investment on Behalf | Builds wealth over time | Requires capital, ongoing management |
Teach & Guide Early | Builds financial confidence and discipline | Long-term effort, consistency required |
Final word – from the Rose & Jones team
There’s no one-size-fits-all solution, but one thing is clear: early planning pays off.
At Rose & Jones, we’ve helped countless families across Sydney’s Eastern Suburbs buy strategically — not just for themselves, but for the next generation. Whether you’re gifting a deposit, investing now for the future, or exploring co-ownership, we can guide you through every stage with clarity and confidence.
📍 Based in Paddington, we specialise in property acquisition across Sydney’s most desirable suburbs within the Eastern Suburbs, Inner-West, Lower North Shore, and beyond.
“If you don’t plan ahead financially, you might find your children grow up but can’t afford to buy in the area they were raised — or even nearby,” says Byron Rose. “Over time, that can mean seeing less of each other and missing those everyday family moments.”
Please note: Rose & Jones are not financial advisers. We always recommend seeking independent financial advice before deciding how to help your children buy property.
“It’s important to start investing for the future when your kids are really little — so you can build that compound interest.”
Ready to take the next step?
If you’re looking to buy property in Sydney, Rose & Jones buyer’s agents would love to help. With over 28 years’ experience across New South Wales and Queensland, we’ll help you secure your dream property — at the right price and on the right terms.
👉 Contact the Rose & Jones team today to get started.
