The growing impact of Australia’s evolving ‘grandparent economy’
As baby boomers age, they’re being increasingly relied upon to assist younger generations financially — and it’s not about helping out with the babysitting
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Baby boomers make up just 21 percent of the population but hold almost half of the nation’s private wealth, creating a ‘grandparent economy’. McCrindle Research said the trend indicated it would have a significant influence in today’s society and directly contribute to the financial wellbeing of younger generations.
The impact of baby boomer wealth is routinely seen in the property market, with boomers often observed at auctions standing side-by-side with their younger relatives as they bid for a potential new home. The Bank of Mum and Dad is likely a significant contributor to above-average first-homebuyer activity in a market with rising values and interest rates at their highest point in 13 years.
CoreLogic recently cited figures from the Australian Bureau of Statistics showing first home buyers comprise 28.7 percent of new owner-occupier finance, well above the decade average of 24.6 percent. One might assume that over the year to May 31, when the median national home value rose 8.3 percent and the official interest rate went another 0.5 percent higher, first home buyers’ budgets and borrowing capacity may have been squeezed. Instead, the value of their loans rose by 10.1 percent.
McCrindle says: “Baby Boomers … are having significant impacts in the economic landscape, showcasing their pivotal role in wealth transfers as they actively contribute to and shape the financial dynamics over the years ahead. Over the next two decades, we anticipate that $6.2 trillion of wealth will be transferred to younger generations. As a result, the grandparent economy is rising, facilitating wealth and contributing to the financial wellbeing of younger generations.”
In a survey published last year, McCrindle found grandparents were acutely aware of their younger relatives’ financial challenges. When asked about their greatest concerns for them, 77 percent cited the rising cost of living and 72 percent nominated the rising cost of buying a home. These concerns are influencing baby boomers’ own financial decisions, with 32 percent intending to pass on more than 50 percent of their wealth directly to their grandchildren.
A recent report published by Colonial First State found three in four Australians plan to set aside a portion of their superannuation to pass on as an inheritance. Another survey by financial advisory company Findex found providing for relatives was a key motivator for 29 percent of investors.
McCrindle says: “As the current generation of grandparents continue to live longer and remain active well into their later years, their investments in properties and superannuation funds become pivotal components of the broader economic landscape. This trend signifies a notable shift in the traditional roles of grandparents, who are now not just recipients of support but active participants and contributors to the evolving economic dynamics, embodying the essence of the new investor in the financial landscape in the years to come.”
McCrindle Research shows two in five young Australians have received assistance from their grandparents. Most of that help is financial, including inheritances, living with them rent free, or paying cheap board, and getting help with everyday bills.
This stylish family home combines a classic palette and finishes with a flexible floorplan
Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.
This sky-high home on the Sunshine Coast with iconic shipping container pool is a testament to modern design and engineering.
3 min
A breathtaking view and a lush quarter-acre block are high up the wish list with any lifestyle property, but this contemporary Buderim residence takes things to another level.
Designed and built by owners Stu and Nat Faid, the Sunshine Coast home reflects their vision and incredible attention to detail.
As an architect and designer, Nat believes a prime position deserves an incredible project.
“The heart of the house is undoubtedly the living area and expansive deck. At over 100sq m and elevated more than 6m above the ground, you literally feel like you’re floating. We love how the views stretch from the Glass House Mountains along the coastline to Mooloolaba. Across the ocean, you can even see the sandbanks on Moreton Island,” she says.
While the views and the 1024sq m land parcel make their mark, it’s the suspended 12m heated shipping container swimming pool that’s making waves locally.
“When people arrive, the first thing they do is look up,” Nat adds.
After purchasing the property in 2021, the pair knew the existing house wouldn’t live up to their family of four, but they fell in love with the location and outlook so decided to adapt.
Initially, the pool’s unique design was simply a reaction to an everyday Queensland problem, but ultimately became a feature.
“The pool was at first a product of practicality. We wanted to be able to watch the kids in the pool from the house, but to do that required elevating the pool more than six meters off the ground,” Stu says.
“When we looked at the engineering required, it conflicted with our minimal-touch ethos in preserving the land and the visual aesthetic of the finished design. What followed was a lot of searching for a solution, and as luck would have it, the answer was almost on our doorstep.”
Shipping Container Pools seemed like a no-brainer answer to the pool problem. Having moved internationally multiple times, the couple saw an opportunity to weave their personal story into the fabric of their new home.
“The opportunity to incorporate a nod to that chapter of our life into the build was too good to miss,” he says.
“It also unashamedly reinforces the origins of the pool construction, which ties into the rest of the design in the house. Throughout the home, we have embraced where the old meets the new, we have not tried to blend, cover or hide the origins of the home, we have chosen instead to make sure the evolution of the house is clear to see.”
The Faids’ global family journey is evident throughout the home, from the grand Middle Eastern entry doors sourced from Dubai where the couple once lived, to the remarkable views from the Glass House Mountains to Mooloolaba.
Created to enjoy every season, the house has a space for all eventualities with an open plan living area spilling out to the full-width deck and pool, a sleek kitchen with an Ilve integrated fridge and freezer, Bosch ovens, an induction cooktop, built-in coffee machine and microwave, two dishwashers, filtered water and a butler’s pantry.
Four spacious bedrooms each have built-ins, the main features a large ensuite with twin vanities and two more bedrooms share a“Jack and Jill” style bathroom. There is also a third full bathroom.
The Buderim home is 12.5kms from Mooloolaba and the Mooloolaba River National Park with the Sunshine Coast Airport 13.5kms to the north, however Stu adds that there is rarely a reason to leave.
“It would be fair to say that apart from popping down the hill to go to the beach, we often go days without ever leaving the village. It’s really is a wonderful spot.”
Packed with mod cons, the Buderim home also features six-zone ducted air-conditioning, engineered oak floors and a double-sided Stuv wood-burning fireplace, a mudroom, heated floors and sensor lights in the bathrooms. There is also a private elevator, solar power and battery, as well as landscaped gardens and a large lock up garage and shed.
The property at 10 Orient Court, Buderim is listed with Zoe Byrne and Greg Ward from Ray White Buderim and will go to auction on September 22 at 9am at Mercedes-Benz Sunshine Coast, 65 Maroochy Blvd, Maroochydore.
This stylish family home combines a classic palette and finishes with a flexible floorplan
Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.
