How to help your kids buy a house and why you should
I bought my first property when I was 27, but getting into the property market is far more difficult for young people these days. In some property markets, the average house price has increased seventeen times more than the average wage.
Whilst it’s not impossible for young people to buy a property, it will invariably take them a lot longer to save for a deposit. High house prices often means that young people are priced out of the area they grew up in and need to look much further afield for a property that they can afford.
As a parent where does this leave you?
If you want to help your children enter into the property market there are a few things that you can to do help.
- If you trust your children and know they won’t default on their loan, being a guarantor could assist in securing them financing. You should be aware that the bank then considers you a co-Borrower and you will be responsible in the event that the repayments aren’t met.
- Invite your children to move back home, or charge little to no rent to assist in saving for a deposit in less time.
- Lend your children the deposit or gift them their inheritance in advance. If you’re in a position to do so this can be a more desirable option than being a guarantor as it keeps your own assets safe.
There is a lot to take into consideration, Good Luck!