How to Help Your Children Buy Their First Property
No matter how old your child is, it’s always difficult to watch them struggle. This is why many parents nowadays decide to help their children buy their first property. The truth is that not many young people can afford to make an investment this large on their own. The real estate prices have gone through the roof, while the difference between their salaries and the cost of everyday life doesn’t leave them with enough for this kind of venture. But, how exactly can you help your child? Here are some suggestions.
Think about downsizing
Even if you don’t have a significant amount of money set aside for this occasion, there are still ways to help your child. Downsizing is one way to go. Once your children leave your family home, it’s highly likely you’ll be left with a home too big to maintain physically and financially. Plus, there’s a high chance you’ll feel lonely and perhaps even in need of assistance in an empty home. Think of this as an opportunity to help your child, but also yourself by selling your home and investing in something more suitable in size and location. Retirement homes like Mark Moran Vaucluse offer affordable apartments of all sizes, with the option of around-the-clock qualified care and a whole range of activities which would encourage you to socialize. Most importantly, you can even get a guarantee that they’ll buy the apartment back from you if need be. This will put you in a place where you’ll be safe and cared for and with enough money left to help your child buy their first home.
Help your child with the mortgage
Another way to help your child if you don’t have cash to give them is to put a mortgage on your own property and give them with the money released to you. It would make a huge difference to your child if you could guarantee their loan, due to the fact that they’d be able to get a higher sum that way. And that’s not all. If you can guarantee their mortgage through a charge of your property or through a deposit which you would put on a savings account in the bank that’s giving them the loan, they could receive the loan in the amount of the most or even the entire value of the property they are investing in as first-time buyers. Make sure you contact your personal banker and ask for any relevant information about these or similar ways to help your child.
Use your savings
Most people have at least some money saved for their later years, and some people’s retirement plans include a weekend home near the sea or money to travel the world. However, you probably won’t be able to relax if you know that your child really needs that money to settle down, especially once you realize that this is the best way to help them. You might be able to give them a part of the deposit money, or even the whole deposit’s worth. In any case, if they’re taking out a loan, the more they have to put down as a deposit, the better deal they can get from their bank. Of course, this isn’t something that you’re obliged to do. You can simply choose to give them an amount of money you’re comfortable with and have them work out the ways to collect the rest of it. They will still appreciate the help, and you’ll know that they’ll have to put some effort into getting the rest of the money. This will make them assume more financial responsibility and teach them to appreciate their home more, considering they had to work hard for it.
Being there to support your child through one of the most important steps in their lives will mean the world to them. So, find a way to help them buy their first home and watch them become the independent people you always wanted them to be.
