How parental ‘gifting’ rather than ‘lending’ is powering western suburbs home ownership in 2026

Many parents now consider home ownership so far from reach that gifting money, rather than lending it, is how they are choosing to help their children enter the property market. And that generosity is carrying an increasingly hefty price tag, particularly for parents helping their children onto the property ladder in Perth’s western suburbs. Data from the Real Estate Institute of WA shows the median price for a two-bedroom house in Perth is $810,000, or $600 per week to rent. But in Cottesloe, the median price for the same size property is $2.63 million , or $875 per week to rent. The median price for a house in the beachside locale is $3.15m, or $1200 per week to rent. Meanwhile, price growth is trending upwards in already expensive Claremont (1.4 per cent), Mosman Park (21.9 per cent), Peppermint Grove (9 per cent), Floreat (8.2 per cent) and City Beach (11.2 per cent). Local property experts told the Western Suburbs Weekly that the ‘Bank of Mum and Dad’ is no longer considered a bonus: it’s become a necessity for most first-home buyers in the area. And they revealed more parents are stepping up and digging deep without the expectation the money will be repaid. It appears a major generational shift is happening away from families loaning money to gifting it. This was recently reflected in research by financial comparison site Mozo which found 75 per cent of parents in 2025 gave money to their children for property without expecting repayment, compared to 33 per cent in 2021. Jody Fewster from Ray White Cottesloe and Mosman Park confirmed more parents appear to be purchasing homes in the area for their children. Fewster said parents want to make sure their children can “stay within the same area” so they “remain close to family”. Jayson Renouf, principal at Renouf Real Estate in Cottesloe, is also noticing more parents stepping in and buying outright for their children. He revealed some are spending “hundreds of thousands” - even “millions” - of dollars to secure a property locally for their child. He believes a big driver of this trend is the scarcity of rentals. Parents want their children to enjoy the stability they had. They also worry already high property prices will continue to soar and they’d rather get their children into the market sooner rather than later. “Contributions from parents range from assisting with deposits that are between $10,000 and $50,000 to purchasing the property outright and spending $400,000 to $2 million,” Renouf told Western Suburbs Weekly. “With the rents being where they currently sit many parents are concluding that they might as well provide the assistance, purchase a property and keep the money in the family which is a prudent strategy.” He said there is still hope for first home buyers in the area who cannot rely on generational wealth. Apartments are occasionally hitting the market in blue chip suburbs with price tags in the $400,000’s. But he warned entry-level buyers needs to act fast. Not only are they likely to be competing with investors, there now appears to be more first-home buyers flanked by parents willing to provide substantial financial support. Renouf just sold a one-bedroom apartment on Stirling Highway in Claremont, opposite Methodist Ladies’ College, to parents who purchased it for their son so he could get started in the property market. “This property sold prior to marketing, sight unseen, which gives you an idea of how competitive the market still is,” Renouf said. He added: “On the housing side of the market entry level is in the mid $1 millions, though even this is fast becoming a thing of the past as prices continue to climb. “In suburbs such as Swanbourne and Cottesloe the entry level is closer to the $2 million mark in what is a very competitive market setting. “What I am often hearing is that if parents want to have their kids and grandkids living anywhere near them that they must get involved financially. “Another issue I am hearing concerns keeping the asset safe regarding potential future claims should the children separate from their partners. “I am guessing that it will only increase as property prices continue to rise.” Property law expert Anton Conti, principal in property and franchising at Cullen Macleod Lawyers in Nedlands, has been assisting a growing number of parents wanting to help their child onto the property ladder. “As property prices in Perth have increased we have noticed an increase in instructions where parents are lending money to their children to buy their home,” Conti told Western Suburbs Weekly. “We are also seeing parents guaranteeing their children’s loan obligations. “Anecdotally, we understand this is because children are unable to obtain finance from a bank due to the high property prices. “We have also had a few scenarios where parents are transferring a current investment property owned by the parents to their children and entering into a loan agreement with their children for the purchase price, similar to a vendor finance arrangement.” He said these are all generous acts of love but they can come with their own sets of pros and cons. Acting as a third-party guarantor can attract unexpected costs. For example, parents are usually required by banks to obtain independent legal advice regarding the guarantee. “From the parent’s perspective the benefit with this approach is that the parents are not required to hand over funds at the time of purchase and will only be required to pay money pursuant to the guarantee if the child defaults on the loan,” Conti explained. He added parents can also give financial assistance as a loan or as a gift. The main difference between a loan and a gift is that for a loan, the lender expects the money to be repaid later. He said it’s worth noting that money flowing from parent to child is usually presumed to be a gift in the eyes of the law unless there is a loan agreement in place, or an obligation to re-pay the money. “If the funds are considered a gift, the funds will likely form part of the asset pool of the child and if the child is in a relationship, part of the asset pool of the relationship,” added Conti. “In this scenario, if the relationship breaks down, the child’s ex-partner may have an entitlement to those funds.” On the other hand, a loan will be considered a liability for the child - and if they are in a relationship, a liability of the relationship. If the relationship breaks down in the future, provided it is a genuine loan, it is more likely that the child’s ex-partner will not have an entitlement to those funds. Conti believes the safest strategy for parents wanting to help their kids is to prepare a formal loan agreement “to avoid unintended consequences” and for parents to consider securing the loan by way of caveat/mortgage. Then, he added, it will be less likely to be considered a gift and caught up in the child’s relationship assets. Expect to pay an experienced WA lawyer between $2,000 and $2,500, plus GST, to prepare one with a caveat/mortgage. Conti also advised parents who want to buy a property in their name, on behalf of their child, to obtain tax advice too. “Owning property in their own name may create unintended tax consequences,” he explained. Parents can be hit with capital gains tax when the property is transferred, for instance, and the child may need to pay stamp duty, both calculated on the property’s market value, not a low price or based on it being a gift. “The main takeaway is to ensure there is something in writing that properly documents the providing of funds as a loan,” warned Conti. “Otherwise the funds may be considered part of the child’s relationship assets and where there is a relationship breakdown the child’s ex-partner is entitled to a share of those funds.”