The Bank Of Mum And Dad Is Stepping In To Fund Kids' Home Ownership

When it comes to cracking into the property market, parents are lending a bigger helping hand than ever before.

For Fred Williams, 20, the prospect of owning a home was daunting, to say the least.

"It's definitely really paralysing sometimes," he told 10 News First.

"To look at those really high numbers, especially as someone who's making minimum wage at the moment just flipping burgers."

Priced out of the market by both a low income and rising property prices, the business student's first step on the property ladder was fully funded by the bank of mum and dad.

READ MORE: Why People Aren't Buying Houses (Apart From The Money Thing)

Fred's parents purchased a two-bedroom unit in the Melbourne suburb of Brunswick. While he lives in it, Fred's rent is paying off the mortgage before he takes ownership in a few years time.

"It's just to give him that leg up I think, just at the get-go," Fred's dad Sam said.

"Being young and sort of giving them a helping hand to get going."

Homeownership among young Australians is on the decline.

The 2016 census found the lowest overall homeownership rates since the 1954 census. In 30 years, the percentage of those aged 25 to 34 who owned their own home dropped from 58 percent in 1986 to 45 percent.

While it's common for parents to pitch in for a home deposit, today's mums and dads are savvy about property investment and more inclined to take their assistance to the next level.

READ MORE: Is Renting Really Dead Money? Not Always If You Invest Right

READ MORE: Rich Parents Shouldn't Be  A Pre-Requisite To Buying A House

"The parents would be able to claim a tax deduction on that property but also collect rent," financial adviser Scott Haywood told 10 News First.

"But transferring the property to the child will then involve stamp duty and maybe capital gains so the family may be paying stamp duty twice."

Buyer's advocate Cate Bakos went halves in an investment property with her step-son, 20, while also earmarking her 50 percent ownership for her daughter, 12.

"[Help] can even be as mild as parents offering to go out and look at properties with their children, and just offer them moral support," Bakos said of lending a helping hand.

The advice for parents interested in taking steps to help their children is to get financial and legal guidance, and put agreements in writing.

For parents looking for other ways to help, experts say there are plenty of options such as smaller loans or buying bonds or shares for younger children.