If you’re struggling to boot your overgrown hatchlings from the nest then you might want to consider helping them in to their own home.
Property Update offers these tips to get your adult kids on to the property ladder.
- Teach your kids early about money, starting with the piggy bank when they’re young, then graduating to more adult concepts like stamp duty and mortgage insurance. It might not be the most thrilling life lesson you’ll ever instil but it will be amongst the most valuable.
- Give them an incentive to move out… start charging board. It wakes them up from the holiday of a free ride and if you’re feeling generous you might set things up so some of the board goes towards saving for a house deposit.
- Feeling really generous? Some parents help out with the house deposit. Your kids will also need to demonstrate they can make loan repayments so they’ll still need to put in some hard yards to get a loan, but the deposit can fast track their goals.
- You might consider a family guarantee, which is more complex in that you agree to put your assets on the line, typically limited to a certain amount. Make sure you get some professional advice on how this works and how to plan for a rainy day so you don’t risk more than you can afford.
- Consider buying as a join venture. This could work if you want to grow your own wealth while supporting your young one on to the property ladder, but you need to be clear on future expectations for selling or retaining the property.