Ways to help your kids buy a house?
Helping your kids buy a property now can potentially be one of the best things you ever do for them, ever!
Gone are the days when parents are just needed to help out with the deposit. With tightened bank regulations and skyrocketing property prices, you may need to take things to the next level in order to help protect their future.
There are three factors that can affect how you can help your kids buy a property. These include:
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- Your finances
- Your kids’ finances; and
- Timing. When should you do it?
University fund or a property fund? Starting early!
Many parents put money aside for their children’s university education starting from a young age.
How about using those funds towards a house purchase instead?
The benefits of this:
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- You children have a property for the future
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- It could be a better investment than money sitting in the bank
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- If you can afford the deposit and buy a positively geared property, it can literally “pay itself off” whilst building nice future equity
- And, it could pay for their university education as well!
Getting the right financial expertise to help?
Helping set up your children for the future is a long-term plan and it is also a big financial investment decision. Talking to your accountant and financial planner can help you plan this so that you feel comfortable with any decision you make.
Other ways of helping your children!
Maybe the right time to assist your children is when they are older, working and generating an income.
The opportunity to help get them in the property market could be:
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- Financial help with a deposit
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- Bank guarantor and security to get the loan approved
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- Allowing them to live at home rent-free so they can save a deposit
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- Helping them be smart with the way they handle money
- Encouraging them to seek financial expertise to help plan their short and long term financial goals.
For a discussion about your situation with a financial planner, mortgage broker or even an accountant, you can consult one of your local area’s top business picks right here at Tradebusters Connect.
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