The day your children get the keys to their own places is when you know your chicks have finally flown the family nest. However, studies have shown that getting onto the property ladder is becoming harder and harder for young people. In fact, your children may find it difficult to ever save enough to buy their own homes. Luckily, there are some things you can do to make sure current home prices aren’t out of reach for your little ones. Here are five of them you just can’t go wrong with.
Teach them about money
This one is pretty straightforward but if you want it to work, you have to start as early as possible. It’s the parent’s job to teach their children how to be responsible with money and if you do it right, chances are your children will eventually find it easier to afford a place of their own. This includes everything from teaching them how not to overspend to helping them come up with ways to make enough money. Another good idea is to help them learn how to manage their finances and keep track of their spending.
Start a savings account
Buying a home is extremely expensive. Even if your children start saving early, it’s possible they won’t have enough to make a purchase. Another way you can help them is to start saving for them while they’re still young. The best thing about this strategy is that you’re only supposed to move small amounts of money into your savings account every month and you’ll still be able to build a substantial amount of money over time. You can even have the money get transferred to your savings account automatically.
Cash in on your home
Another idea worth considering is selling your own home and using the money you get to help your children buy their first property. Of course, you’ll still need a place to stay but you can probably move into a smaller home and give the money you’re left with to your children. Even if the home you opt for isn’t close to your children, you can still turn to experts in retirement home care and have them offer you all the support you need. Another good idea is to move to a retirement village with other seniors.
Use a family offset mortgage
In case you have some money on the side but it’s not enough for your children to get onto the property ladder, you can still use it to help them get a better deal on their mortgage. A family offset mortgage can be used to reduce the mortgage costs and make your children more likely to have enough to pay it every month. Parents who opt for a family offset mortgage will get their money back after their children’s fixed rates come to an end. The only problem with this method is that the money you saved gets locked down for a long period and does not earn you any interest.
Become their guarantor
Nowadays, most people have to take a bank loan in order to buy a home. If your children don’t manage to save enough, chances are they’ll have to turn to a bank as well. However, in case they have bad credit or they simply cannot get enough, you can consider the idea of becoming their guarantor. Having a guarantor makes your children’s applications more likely to be accepted, allowing them to make the purchase. Although it’s natural for parents to want to help their children, make sure you think about whether they’ll really be able to pay the loan off.
Over to you
Your children may be all grown up but with the way things are at the moment, they might need your help in order to get onto the property ladder. No matter which of these five things you decide to do, you should be able to assist them.
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