Helping Your Children Into the Property Market
With interest rates reducing, is it time to help your kids get into the property market?
There has been much said about parents using their collateral to help their children get into their first home.
As property prices in Australia have continued to rise over the years it has become harder and harder for first time buyers to enter the market.
All parents want to think that their children will be able to have a roof over their heads during their adult lifetime – and there are other ways of helping your children get started in Real Estate rather than risking your own property.
Here are a couple of options you could talk over with your children:
* You could look at setting up a trust with all parties involved and purchase a property that way. This scenario could be where you have one child or even several children who are willing to participate.
* You could go shares in a house with the your child. This way there could be a shared responsibility for loan repayments. The idea with this is that it would be an investment for both the parent and the child. The property could be purchased with the clear intention that when there is enough equity the property is sold and the child can then move on to their own property. Or, it may be agreed at the outset, that when the child can afford it, they buy the parents out.
Both of these systems involve the children in an adult role sharing the responsibility of property ownership.
Filed Under: Investment Strategies
About the Author: 
