Studies have shown that an average person is supposed to save money for thirteen years if they want to buy their own home. This is why so many people never end up having their own property. Those who do, often get help from their parents. About 60 percent of people buying their first home have had their parents assist them financially. If you want to do this for your children, here are four simple ways that are guaranteed not to fail.
Put money in their savings accounts
For most people, buying a property is the biggest investment they’ll make in their lifetime. Obviously, this is because it takes so much money to do so and the best way to accumulate that kind of money is to save over the years. If you want to help your little ones get onto the property ladder, one of the best things you can do is start savings accounts for them as early as possible and transfer small amounts of money to these accounts at the end of each month. The earlier you start, the more they’ll have once they decide to leave the family nest.
Sell your own property
If your children are about to move out, chances are you don’t need a large home like the one you currently live in. This is why you can consider selling it and moving to a place that suits all your needs. For example, if you’re retired, there are luxury retirement solutions where you can live and spend time with other seniors. The money you’re left with can be used to help your children buy places where they’ll start their own families. Find a resort close to them and there should be nothing stopping you from visiting them whenever you want to.
Be their guarantor
This is one of the riskier solutions but it’s a good idea for parents who are absolutely sure their children will be able to pay off their loan. Basically, what you’re supposed to do is become a guarantor for them and commit to paying off their loan in case they fail to do so. The reason why it works is because having a guarantor means they can get a better deal and buy the property they want. However, in case they’re unable to pay it off, you become responsible for doing so. That’s why you should only follow this path if you’re absolutely sure paying off the loan won’t be an issue for them.
Help them save
As mentioned above, one of the best ways for buying a property is to save money over time until there’s enough of it to make a purchase. If you didn’t manage to save enough for your children to buy their first properties, you can still help them do it. If you start teaching them how to save money at an early age, you can be assured they’ll be responsible with their money. Most of the time, this means they’ll know how to scrape away money for buying their first properties. You can also show them how to make some extra money to ensure they have enough once they move away.
As a parent, it’s your job to make sure your children have enough to buy their first properties. Follow these four ways and you’ll do everything that’s in your power to help them with it.