With money from household chores (and daddy’s help), 6-year-old buys a house

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As a lesson in real estate investing, a father taught his 6-year-old daughter and two siblings how to put together a real estate portfolio – and they ended up with a brand new home.

For a young Australian child, one of her first purchases may also be one of the most important she has ever made.

“My name is Ruby and I’m six and just about to buy my first home,” Ruby told 7news Australia.

Ruby and her siblings Gus and Lucy each donated $ 2,000 from housework and other chores as part of their family’s efforts to buy a $ 671,000 house in Clyde, a suburb of Melbourne, Australia. (This is in Australian dollars. The property’s US dollar value would be closer to $ 480,000.)

As we’ve seen in the United States, property values ​​in Melbourne and across Australia have skyrocketed during the pandemic as concerns about long-term housing affordability creep into the minds of residents. . But that might not be as much of a problem for these long-term siblings.

Home prices in Melbourne have risen nearly 20% in the past year alone, according to CoreLogic data. Half of the town’s homes now sell for over $ 986,992.

This makes buying the McLellan siblings in the most affordable segment of the market. But their father, Cam McLellan, believes the home’s value will double over the next decade.

“The price of this block has already increased by $ 70,000, so they have done well so far,” McLellan, a real estate investor, told 7news.

The news agency reports that the children made money partly from housework, but also by “packing their dad’s redesigned bestseller.”

Ultimately, the plan is for the siblings to sell the house in 2032 and split the profits, 7news reports. In the meantime, it is planned to rent it.

In Australia, home values ​​have risen much faster than wages have held up.

Wages across the country have increased 82 percent over the past two decades, according to Australian Bureau of Statistics. But during that same period, home values ​​climbed 193%.

McLellan, the father and real estate investor, hopes his lessons will be useful to his children when they are old enough. His book was written in part with them as audiences, he said.

“It’s written for my kids to use when they’re old enough, so I’ve outlined all the steps involved in creating a real estate portfolio,” McLellan told 7news.

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