The high cost of home ownership particularly in Australia’s major capital cities is worrying many families as to how the children/grandchildren will enter the market.
An idea being offered by AUSTOCK Life is that parents and grandparents commence an insurance bond that is in the name of a particular child or grandchild and is invested in growth assets to produce a sizeable portion of a home deposit.
Below is an example of what $10,000 from parents and grandparents invested in a mainstream balanced fund for 10 years can produce.
The data used is based on actual long-term performance after fees and portfolio tax.
After 10 years the bond is now worth $19,197 with no tax to be paid in the hands of the young person when they are looking to establish their own home. A nominated vesting date can be used up to age 25 for the young adult to be available as part of a house deposit.
Contact
Richard Atkinson
Head of IFA Product and Relationships
Austock Life Limited
p 03 8601 2095
m 0417 541 897
e RAtkinson@austock.com
w www.austock.com