Should I Help Out My Dad?

Question


Hi Scott,

I am a 30-something single renting in Sydney — and I have saved up a $25,000 deposit towards a home. My dear dad is an expat on a whopping wage overseas but has just lost half his retirement money to his very predictable ex-girlfriend (now there’s a bad investment!). He wants to retire next year at 60, and his super is good but he will only have $250,000 to buy a place when he returns from overseas. I am thinking of putting my deposit into a loan to go halves with him in a property for him to live in. Am I silly?

Bec

Scott's Answer


Hi Bec,

Yes, that is a silly idea.

Your old man is actually in a very fortunate position: he’s still got a decade of work ahead earning a ‘whopping wage’. So all he has to do is keep his pecker in his pocket, and keep working until he can afford to actually retire. If only every question was this easy! Keep saving for your own joint.

Scott