Over the past few years, in Australia we have seen an increasing number of parents helping their children to buy a home.
Initially, this trend was driven by rapidly escalating property prices and the desire to help their children purchase a home whilst it was still affordable.
Of more recent times, with a more stringent approach to serviceability by Banks, the focus of parents has been more about reducing the amount borrowed to help make the repayments more affordable.
There are several ways parents can help their children buy a home, with each having pros and cons:
In a market of high property prices and low wages growth it is a natural desire of many parents to help their children buy a home.
However, it is important before taking this step to understand the ramifications of the different options available. To seek professional advice.
If you would like to learn more, don’t hesitate to call me on 0421 304 990