Get Young Aussies into the Property Ladder the Right Way
Parents want the best for their children. So much so that some are willing to go the extra mile just to ensure that they have a good financial future. According to latest study, a growing number of parents are helping their adult children buy properties — by giving them money.
A survey by REST Industry Super found that one in three retirees in Sydney, Melbourne, and Perth as well as one in five in Brisbane and Adelaide were willing to give money to their children so they can buy properties.
Young homebuyers these days are finding it difficult to enter the property market for various reasons. One of the challenges is the difficulty in saving for a deposit. With the rising cost of living and slow salary growth, many young Australians think they can’t buy properties with the money they have now. Furthermore, with stricter lending requirements, it’s not so surprising that some fall victim to financial scams or poor investing strategies. As a result, young Aussies are forced to rent or live with their parents longer, without a home to call their own.
According to the survey, there are several ways parents help their children in financing their property purchase. Some pay a portion of the deposit. Others, the exceptionally generous ones, even cover the entire amount. Some parents also provide a personal loan, which usually involves tricky mortgage plan and clauses. Lastly, many act as guarantors on their children’s mortgage.
Get into the property ladder
There are many strategies when it comes to property investing. You can have the property rented out for example, while you rent a smaller place instead of living in the home that you purchased. This enables you to cut your debts faster with the rental income, take advantage of the tax incentives, and improve your portfolio — all of which could help you get into the property ladder.
Without sound advice, buying a property could easily lead to mistakes. What is important is that you get a deep understanding of the property market and you have a solid investing plan. It’s good to start early and find an experienced team who can show you and your children the ropes.
Given the right advice, you can help your children to secure their own financial future. Give us a ring now to know more about efficient strategies in property investing.