Investing in your first property is a great high point that will require quite a lot of funds. While every couple dreams of having their own place that they won’t have to pay rent for, it’s usually not that easy to come up with enough money without the help of parents or other family members. If getting onto the property ladder is your children’s or grandchildren’s greatest challenge, you can help them buy their first home in several ways.
Offer your own home as security
One of the potential ways in which you can help your children buy their new home is to use your own house to borrow money in the form of a secured loan. You will pledge your own home as a warranty that you’ll be able to pay the money back. An equity release scheme called a lifetime mortgage is another option. This way, you’ll borrow money against your own home but you won’t have to pay it back during your lifetime. So, if you’ve thought about giving your children’s inheritance to them early on, this would be the right way to do it. The money can then be repaid after your death, once your house is sold.
Pass on the property
Another way to help your youngsters get onto the property ladder is to pass your home to them. Their family will probably start expanding if they’ve already gotten married, so living in a home where they grew up could not only be a practical move, but would also allow the next generations to create the same lovely memories in your home. This way, you could move into a retirement home and have a completely new life in your golden years. Check out some of the amazing retirement villages in your area and spend your glory days in the company of other retirees. Otherwise, you may want to trade the family home for a smaller property, in which case you’ll be able to pass excess wealth over to your children. One of the benefits of this type of help is a lower risk of tax than in the case of giving your children the money as a part of their inheritance.
Give them money
If you’ve saved enough money through the years, and you’ll be able to support your needs and invest in your child’s future home, then you should consider the option of lending them money. On the other hand, you can also buy them a house or an apartment if you have sufficient funds. Just be sure you’ll have enough money for your living costs and all the necessities in the future. If you decide to buy them a property, you’ll have the option to be joint owners or allow them full ownership. Buying a second home on your own, but allowing your children to live there, will make you joint owners. However, don’t take this decision easily because you should let your children make it on their own if you want to see them work even harder to make their dreams come true.
Final thoughts
From lending money to your children to mortgaging your home and buying a property for them, there’s an array of ways in which you can help your children get onto the property ladder. Just make sure you’re there to assist slightly and not offer them everything on a silver platter if you want them to learn how to work hard for their dreams.
