6-year-old-buys-671k-home-allowance

6-Year-Old Buys $671K Home With Allowance

Six-year-old Ruby McLellan has just been named one of the world’s youngest home buyers!

Many kids at this age can earn their allowance money by doing chores around their home, helping with garage sales, or running their lemonade stand. It sounds rare these types of activities can lead to six-figure earnings.

She recently informed 7NEWS, “My name is Ruby and I’m six years old and I’m about to buy my first house.”

This child from Melbourne, Australia has purchased a home. What’s most fascinating about this story is that she’s been able to learn about saving and property value at such a young age. This is something kids in America don’t even learn in high school. So, how has Ruby managed to save this type of money at her age?

Ruby, her sister Lucy, and their brother Gus have continued saving their allowances year after year. The siblings have earned their money from completing chores around the house and assisting their father in packaging his book. And guess what? Their original goals were to buy a plot of land!

Congrats Ruby for buying your first home using allowance money!

Father Educates Young Children on Property Investments

Although the house and land cost a hefty $671,000, Cam McLellan believes the value will cost twice as much in the next ten years. The price of the property purchased has already increased by $70,000. What a way to teach his children about investing. He also reveals his children’s plans to share the profits after selling the house and land in the year 2032.

Over the years, McLellan has educated his children on the necessary steps to take to properly invest in property. “It’s written for my kids to use when they’re old enough, so I’ve outlined all the steps it takes to build a property portfolio,” McLellan added.

The father of the young home buyer, Cam McLellan is a property investment expert. No doubt McLellan’s knowledge of property investment gave Ruby the upper hand. The father informed 7NEWS that each of his children saved $2,000 for the plot of land. The house purchased is not yet complete. It will soon sit on the newly purchased land.

Although Australia has a thriving real estate market, many parents of young children are concerned their children will not be able to afford a house once they reach adulthood.

The Australian Housing Market

Surprisingly, the average home in Australia costs around $1,000,000. If that was the case for us in America, most of us non-celebrities would be homeless.

Over the last year, the price of houses in Melbourne has increased by 19.5%. The mid-price of a home is currently $952,000. Property values have increased by an additional $8,000 over the last month.

Oh, Australia. Such a beautiful, yet pricey continent.