We all want what is best for our children. Unfortunately, in the current economic climate, it is becoming more difficult and expensive for first time buyers to purchase a house. If you are wondering how you can plan ahead to give your little ones a helping hand when they are old enough to look into buying a property, then there are lots of options available to you.
What should I be looking for in a property before investing?
First of all, you need something that will meet your personal and financial needs. In order to meet your financial needs, you must first make sure you can plan ahead for the next 10 years or so to ensure that you can afford to invest in a new property.
If you can afford to invest in a property while your child is still too young to move out, then why not use this property as a second home for the holidays or even rent it out for a few years? The latter option comes with many benefits, as you would be able to keep the property active and also bring in some alternative income.
How can I help my child get on the property ladder without buying a house?
If you are unable or do not want to simply buy a property for your child, then the next simple way of helping is to give your child enough money to cover a deposit as a gift. This can be specifically saved for throughout his or her.
It is understandable that you may not be in a position to buy a property or give a cash gift. In this case, do not give up hope. It is also worth looking into the other ways to help out, such as using your own home to raise the money for their deposit – for example, securing loans. You could also be the guarantor for their mortgage, which would give them a better chance of being accepted for a property.
There are countless options as to how you could help your child. However, the decision is not to be made lightly, because your financial situation or house could be at risk if everything went wrong. This is why it may be advisable to speak to a financial lawyer who could help you make an informed decision.
Jim Decker, who works in investment banking and corporate finance, has over 20 years worth of experience. He is currently based in Vancouver and has a wealth of knowledge when it comes to investing in property.
There are many ways in which you can help your child take the first step toward getting on to the property ladder, whether that is starting early and saving or even purchasing a property yourself. However, there will be an option to think about no matter what your personal situation is, so do not be put off if you are not in a financial position to purchase a property.