In this day and age, parents often need to help their children buy their first home. According to research, an average person is supposed to save money for about thirteen years before being able to do this on their own. This is just too long and parents stepping in seems like a much better idea. About 60 percent of first-time buyers say that they’ve had financial help from their parents and there’s no reason why you shouldn’t help your little one as well. But how exactly can you do assist them? Here are four ways that are guaranteed to work.
Save money for them
Buying a property is an investment that requires a lot of money. No matter how much you make, chances are you don’t have enough money set aside for your child to buy property. However, if you plan strategically and save money long term, you might just be able to give them a significant amount of money that will make purchasing their new home much easier. The best thing you can do is start a savings account for your child when they’re still young and deposit a small amount on a monthly basis. This won’t impact your quality of life but after years of saving, your child will have enough money to work with once it’s time for them to leave the family nest.
Sell your home
Selling your home is one of the quickest and safest ways to provide your child with enough money to buy their first home. Luckily, there are places such as this retirement village in Central Coast where you can move and ensure you get all the care you need, while also helping your child buy property. You’d be surrounded by professionals all the time and stay in a well-designed suite. Of course, you can also keep a portion of the money for yourself and use it when necessary. Another option is to move to a retirement village and simply give them your home to use.
Go guarantor for your children
Of course, applying for a loan is one of the quickest ways to obtain enough money to buy property. Still, this doesn’t mean your child will actually be granted a loan. Sometimes, even if they get a loan, it just isn’t enough to make such a big purchase. However, if you decide to be their guarantor, it might just help them get more money and have enough to buy their first home. Although this is a great idea, bear in mind that being their guarantor comes with a huge responsibility. Essentially, you agree to become responsible for repaying the loan in case your child fails to do so in an agreed period of time. So, if you don’t think they’ll be able to do it, opting for a different way is a much safer idea.
Help them save money
If you didn’t start a savings account for your child, there are still plenty of ways you can help them save money for buying a property. In fact, a part of being a parent is to teach your child how to be responsible with their money and always set aside a portion of it at the end of the month. The good news is that in this day and age, there are so many ways Australians can make money on the side and save a lot of it. So, you can have them start learning a foreign language at young age and later use it to teach online or translate documents. Or you can have them take an accounting class and they’ll be able to do some freelance work until they have enough to get onto the property ladder.
It’s your job as a parent to ensure your child has enough money to buy property and doing so isn’t as difficult isn’t as difficult as it seems. Opt for one of the ways discussed above and there’s no doubt your child will be able to afford to buy their first home.