Right now, it looks like it’s harder than ever for first-time buyers to get onto the property ladder. Prices in Australia keep going up and young people simply don’t have the money it takes to buy their own property. Since every parent’s goal is for their child to become a responsible adult and start a family in their own home, parents often decide to help their little one once it’s time for them to leave the nest. If this is the case with you, make sure you check out the following four ways for helping your child get onto the property ladder.
Save money for it
There’s no need to say that buying a property is extremely expensive. In fact, for most people, it’s the biggest investment they’ll ever make. With the way prices are at the moment, chances are your child simply won’t be able to afford to buy one unless you help them with it. One of the most obvious ways you can do this is to save money for helping them get onto the property ladder. The earlier you start, the better. No matter how old your child is, it’s never too early to start saving. Talk to experts in your bank, choose the right savings account for your child and make automatic deposits on it every month.
Consider selling your home
Another great way to help your child buy their first property is to sell your home and have them use a portion of the money you get. Obviously, you’ll still need a place to stay and there are plenty of options Australians can choose from. For example, you can stay in a cozy retirement village in Central Coast and make sure you get all the care you need. This is a perfect option for those who have more than one child and want to split their own assets to help their children get onto the property ladder. Also, there’s no need for you to stay in a large house once all the children leave the family nest.
Be their guarantor
For most people, the only way to buy a home is to take a loan. Although doing so is a great idea, it doesn’t always work. Just because your child can apply for a loan, it doesn’t mean they’ll be granted one. Even if they do, they might not be able to get the amount they need in order to purchase a property. Luckily, their chances of getting a loan they need increase significantly when there’s a guarantor involved. Therefore, if you believe your child will be able to pay off the loan on time, there’s no reason not to be a guarantor for them. Just have in mind that you’ll have to pay off the loan in case they fail to do so.
Teach them how to save
If you haven’t started a savings account for your child or you did too late, there still are ways to help them save enough to buy their first property. Being clever when it comes to saving money can be extremely helpful and it’s up to you to teach your child how to do it. Obviously, the most important part of it is to learn how to set aside a small amount at the end of each month and let it accumulate over the years. Another smart thing you can do is make sure they know that paying with cash is better than using a credit card because it gives them more control over their money.
Over to you
It’s up to parents to make sure their little ones have enough to buy a home where they’ll raise their own family once it’s time to do so. Opt for one of the ways covered in this post and you can be assured your children will be able to afford the property they want.