A lot of parents want to help their kids get their first property, and if you’re one of them, too, you’re definitely at the right place! Here’s everything you need to know about why and how you should help them get onto the property ladder, so keep on reading and learn something new today!
Should you help your kids buy a house in the first place?
Well, this largely depends on a lot of different factors, but the most important ones are the following: your approach to parenting, your financial circumstances, and your relationship with your kids. Even though lending a helping hand to your kids is sometimes a double-edged sword, the majority of parents still decide to help their children get onto the property ladder no matter what. If you decide to do so, too, make sure to do everything you can to protect both your and your kids’ interests.
Why do your children need some help?
Getting their own property is often much harder and more expensive than you can imagine, which is exactly why you, as a parent, should lend a hand. A large number of first-time buyers find it very difficult to secure an affordable mortgage deal that allows them to purchase their new home, so don’t wait any longer and secure your kids’ future in the same way you’re thinking of your future. For example, a large number of older Australians choose retirement village Central Coast as a place where they can live once they retire. If that’s what you have on your mind, too, make sure to help your kids with their first property so that everyone can live a happy and fulfilled life in the future!
How to help them?
There are many ways to help your kids get onto the property ladder, but here are the three most useful ones you should take into consideration:
Give them money
Parents often lend money with no real expectation of it being returned, right? If that’s what you want, too, you should remember that the amount of money you want to give your kids is totally up to you. However, if you want to give it tax-free, you should definitely plan when to make that gift. Simply put, as long as you live seven years or more from when you make this gift, your kids won’t have to pay inheritance tax on it when you die. However, if you don’t get to live more than seven years after you’ve made the gift, they might have to pay the inheritance tax.
Loan them the money and charge interest every month
On the other hand, if you don’t really want to kiss the money goodbye forever, you should probably come up with a contract that specifies when and how it’s going to be paid back. Charging interest is also an option if you feel like it. If you decide to charge it, it should be less than the market rate for the loan to actually help your kids. Formalizing the arrangement and setting down a repayment schedule should be done by a property solicitor.
Encourage them to play their part
Encouraging your kids to play their part and start saving as early as possible is one of the best things you can do – especially when they have a specific goal in mind, which is buying their first property in this case. Investing a particular amount of money every single month is a great start, and you should let them know that the longer they have to save, the longer their money will grow. If this isn’t motivating, we don’t know what is!
As you can see, there are a lot of amazing ways of why and how to help your kids get their own property. If that’s your main goal right now, all you have to do is to stick to our tips and guidelines and you’ll make it happen, without a shadow of a doubt!
For more articles, visit Property Finds Asia.