It’s no secret that the property market is getting more and more difficult to enter with each generation that reaches adulthood, leaving many young adults feeling as though they’ll never begin their property journey. However, as parents, there are plenty of steps you can take to ensure that your children get the best possible start in the property game. All parents want what’s best for their children, and that is why we’ve giving you 4 ways to help them own their first home:
The hardest part for young adults trying to get a foot in the door of the property market is to come up with a deposit. The younger generation tends to be more careless with their cash, and often rely on Mum & Dad to foot their expenses, such as phone bills or rent. However, by teaching them the value of money from an early age, you are giving them a valuable head start. From their first job as a teenager, your children should begin saving a portion of their pay each week. Every little bit counts, and by encouraging the importance of saving from the get-go, the better chance they will have of being able to make important purchases (like property) in the future.
2. Explain the other costs of purchasing property
Coming up with the deposit to buy a house may be the most difficult part, but it is important that your children are aware of the other expenses associated with purchasing property. There are plenty of hidden costs when it comes to buying a home, such as council rates, stamp duty, legal fees, lenders mortgage insurance, and more, that need to be factored into their budget to help avoid any surprises!
3. Become a guarantor for their home loan
What can you do to help if your child has a steady income and you believe they are financially responsible enough to own a home, but they don’t have enough saved for a deposit? You can act as guarantor on their home loan by using your own property as security. Obviously, you should only act as a guarantor if you believe that your child is capable of repaying the home loan themselves, otherwise you put yourself, and your own home, at risk. Before you commit to anything, make sure to sit down and have a conversation about the expectations for both parties involved.