Your child has done everything right. They have a job, they work hard and they are trying to save money for a property of their own. However, it’s evident that, no matter how many extra hours they stay at the office and how much they try to minimize their expenses, the amount of money they manage to save is nowhere near what they need. If you can see that it could take them years before even gathering enough money for the deposit, it might be time for you to step up and provide some much-needed help. In case you don’t know if you actually can help them or how to do it, here is some advice for you.
Once your child leaves home and starts their life somewhere else, you’ll be left with a home that’s probably too big for you. Not only will it be half-empty, but you’ll also have to maintain the whole thing. This could prove to be a problem in the long term, especially as you get older and need help yourself. View this as a good opportunity to kill two birds with one stone. You could sell your home, get something smaller and give your child the price difference. Also, this could be a great time for you to think about moving to a senior community. Some of these communities are vibrant and appealing, and even offer individualized dementia home care for their residents, as well as more than one payment method to choose from or to combine. This way you can help your child, while making sure you also spend your golden age comfortable and happy.
Dip into your savings
The money you’ve been setting aside for rainy days or for that weekend home in the mountains could be exactly what your child needs to finally settle down and start living a normal life. If this is the case, you should definitely dip, or even dive into your savings to help your kid. Whether you can only give them a small portion of their deposit money, all of it, or even more, it will definitely take a huge burden off their shoulders. One option here is to give them as much money as possible, so that they have a bigger deposit to put down. This could potentially allow them to get better loan conditions from their bank. Another option would be to decide on the amount of money you’re willing to part with and let them figure out how to get the rest of it. Both options are very generous and your children will probably appreciate the help you’re offering.
Guarantee their loan
If you don’t have any cash stashed somewhere, and you’re not ready to sell your home and move, there’s another way you can help. The bank might be willing to give your kid a bigger loan if you guarantee it. One way to do this is by letting them take into account your income on top of your child’s when the bank assesses it. You can deposit some money in the bank as security, or permit that a charge be placed on the property you own, which would mean that your kid could get a big enough loan to cover most or even the entire value of the property they’re purchasing. This will require a significant amount of trust on your behalf, so make sure they present you with every possible scenario if things go downhill for some reason.
There are many ways for you to provide financial assistance to your child when they need it most. And while you can go out and buy your child a house or an apartment if you have the resources, any other form of support will be more than welcome while they’re making their biggest steps toward independence.