EXCLUSIVEIm a managing director at a big bank - heres why Ill need help from mum and dad just to buy a house
A managing director with a major bank has revealed he will need help from his parents to buy a house in Sydney.
A managing director with a major bank has revealed he will need help from his parents to buy a house in Sydney.
Ash Frenken, the head of AMP subsidiary Citro, admitted he would struggle to buy a house where he wanted to live without support from the Bank of Mum and Dad.
The 34-year-old renter said his parents recently moved from Melbourne to regional Victoria.
Investing in real estate is very challenging for people of my generation - Im certainly requiring the help of mum and dad and thats not an uncommon thing of people my age, Mr Frenken told Daily Mail Australia from Rio de Janeiro.
Certainly purchasing in Sydney is a very challenging thing - if thats something I want to do, Id likely require support from the folks.
My preference is not to have to ask mum and dad for help but certainly if they can, or theres a way of them doing it that doesnt affect them and their retirement, then thats something that might be an option.
Mr Frenken lives at beachside Tamarama and works in Sydneys CBD as the head of Citro, a spending rewards program for Australians approaching retirement age.
He is hoping to buy in Sydneys eastern suburbs so he can maintain his social connections.
Ash Frenken, a managing director with a major bank, has revealed he will need help from his parents to buy a house in Sydney
Ash Frenken (third from the right), the head of AMP subsidiary Citro, admitted he would struggle to buy a house where he wanted to live without support from his parents
Ideally, that would be my preference to stay in the same community that Im in because communitys really important, he said.
Thats currently where I live and I really enjoy it there - it is certainly one of the more expensive areas of Sydney to buy though.
Tamaramas median house price of $5million is more than triple greater Sydneys median house price of $1.5million.
Even with a 20 per cent mortgage deposit, he would need to earn $769,230 - or more than double what the top 1 per cent make - to secure a loan on his own.
Sydney is expensive, even the outer suburbs of Sydney are still more than a million dollars, he said.
Coming up with 20 per cent, saving more than a million dollars is a very challenging thing for anyone to do.
Its certainly much more challenging on your own not only for the capital but the need for a deposit, then just also to afford the repayments on the loan.
Mr Frenken was reluctant to say what was salary was but he hinted it wasnt entry level.
As a high-flier in finance and technology circles, Mr Frenken doesnt want to commute from an outer suburb of Sydney.
Certainly, could I buy in a less expensive area? Yes, he said.
Mr Frenken (in white polo shirt) is hoping to buy in Sydneys eastern suburbs so he can maintain his social connections, with his friendship group including actor Tim Draxl (far right)
Theres certainly an opportunity for me to get into property - there would need to be concessions made around where I live.
But is he continuing to rent so he can live where his friends are, because he cant yet afford to buy in Sydneys eastern suburbs.
Unfortunately, Im not able to do that and live where I want to live, he said.
Right now Im renting - it gives me the option to live where I want to live.
Right now, the community that I have around me and where I live, the lifestyle factor that I get out of that is more important so thats why I choose to rent.
When he eventually buys, he is resigned to having to ask him parents for help with things like a 20 per cent mortgage deposit and lenders mortgage insurance.
If I was to pay in Sydney, that may be something that they may need to do, he said.
Help can be many different things.
The millennial achiever believes baby boomers had it much easier.
It was a little bit easier for the generation before us, he said.
As a high-flier in finance and technology circles, Mr Frenken doesnt want to commute from a far, outer suburb of Sydney when he eventually buys
