A 6-year-old Australian girl might be the youngest home buyer after buying a $671 home using her allowance money. After saving allowance money for years, from doing house chores, and helping their dad package his best-selling book, Ruby McLellan, along with her sister Lucy and her brother Gus have brought their own house, according to 7News. The father of the children, Cam McLellan is a property investment expert.
"My name is Ruby and I'm six years old and I'm about to buy my first house, Ruby McLellan told 7News. The partially built house and land are located in the suburb of Clyde in southeastern Melbourne. McLellan predicted that the value of the land will double in 10 years. He further revealed that his children have plans to sell the house in the year 2032 and split the profits.
McLellan also noted that each one of his children saved up $2,000 to contribute to buying the land. "It is written for my kids to use when they are old enough, so I have outlined all the steps it takes to build a property portfolio," he said.
Rising prices of real estate in Australia
An alarming surge in the property prices in the Australian real estate market has left many parents worrying that their children might not be able to own houses when they grow up. An average house in the land down under costs nothing less than $1 million. The house prices in Melbourne have increased significantly by 19.5 percent in comparison to last year. According to data from the Commonwealth Bank of Australia, around one-quarter of Australians have already considered joining together with parents, friends, or siblings to buy property together.
The managing director of a property information and research firm in Australia SQM Research, Louis Christopher said in an interview that if the Australian housing market does not slow down by mid-2022, APRA (Australian Prudential Regulation Authority) will keep intervening until it does. "We cannot afford another year of 20 percent plus gains across the national housing market," he said.