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Got An Inheritance Waiting? Kochie Says Remember “It’s Not Your Money”

Over the next 10 years in Australia, $5 trillion is expected to move down the generations, marking the greatest transfer of wealth in modern times.

Around $2.3 trillion will be given to Boomers’ children, $1 trillion to their grandkids, and $1.7 trillion to charities.

Sunrise television presenter and Compare the Market’s Economic Director David ‘Kochie’ Koch tells The Briefing what impact this shift of wealth will have on the economy.

The Briefing hosts Kochie on the bank of mum and dad:

Koch said intergenerational change will accentuate taut market dynamics. He said two hundred and fifty thousand new properties are needed each year to balance supply and demand.

“A lot of parents are helping the kids along the way. The bank of mom and dad is currently the second biggest home lender in Australia,” Koch said.

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Parents are somewhere between the 5th and 9th biggest lenders according to the Productivity Commission.

“Remember if you’re waiting for the inheritance, it’s not your money. And they’ve worked hard for it. They started off struggling as well.”

“Everybody wants to live the lifestyle of their parents,” he said, “You’ve got to go through the process. You got to work, or build a career, save up, you know, look at your lifestyle.”

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