A harrowing reminder that I should’ve started saving for a house as a child
An eight-year-old Australian girl has become one of the world’s youngest homeowners.
Ruby McLellan and her older siblings Angus, 14, and Lucy, 13, pooled together their hard-earned pocket money to purchase their four-bedroom home in Clyde, Victoria, Australia.
The siblings secured their place on the property ladder several years ago for $671,000 (€405,250.45) and all of their names are on the title, according to the DailyMail.
Once the children have reached adulthood, they will split the profits from any sale, plus the capital gains tax.
In the meantime, the home will be rented out.
The property spans over 200 sqm and is positively geared resulting in the rent being higher than the mortgage repayments, meaning it doesn’t cost the family ‘anything’ to hold it
Their home is now worth a whopping $960,000 (€579,752.97).
Together, Ruby and her siblings saved $6,000 for a deposit by helping out their parents with chores.
Their parents covered the remainder of the financial costs and are already helping their children to secure another property by using the equity in the mortgage of their first house.
Cam McLellan, Ruby’s father tells the outlet that he understands how unconventional or awkward it may be for the tenants to have children for landlords, but ultimately, he wanted his children to have financial freedom later in life.
“I want to save them from having to save for deposits down the track. I want to help them be smart property investors.
“When I was starting out I was earning $40,000 and [a house[ deposit was $7,000. Now it’s much harder to get a deposit if you’re earning $60,000 and the deposits are $120,000.
“In ten years time it will be worse and my kids aren’t going to be able to save that deposit – four kids, so rather than four times a $200,000 deposit, (my wife) Felicity and I are giving them a leg up now to get a house later on.”
At eight years old, the only property I owned was a dollhouse.
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