Are parent assisted property purchases a good idea?

By Janet Spencer

Are parent assisted property purchases a good idea?

At Buyer Solutions we are frequently asked the question “are parent assisted property purchases a good idea?”  As the mother of a soon to be 19 year old and a soon to be 21 year old, this question is relevant for me.  I make no secret of my love for property, however if I intend to help the boys enter the property market, new issues will need to be on my radar.

1.  Protection of inter-generational wealth for the family.
There are a number of concerns for parents here.  The 3 D’s can take on a new relevance if you put your money into a property to help the kids.  Death, divorce, the disgruntled de-facto.  What could those events mean in future?

2.Will the bank require onerous bank guarantees?
At my stage of life, I don’t want to work forever  So, while I am working I want to buy more investment properties.  I don’t want the bank tying up my assets if I can avoid it while I attempt to both help the kids into property and expand our investment portfolio.

3. How will I put the necessary  formal agreements in place and who should I see for financial and legal advice?
With housing affordability slipping out of reach of many young people and costs of tertiary education debt about to increase, the future could appear a bit bleak.  This is a major issue on many parents’ minds.  We have had parents in our offices with children as young as 8 and 10 years old asking for advice and strategies to secure future property holdings on their behalves.

Please pass this article to any of your friends with teenage kids or older.  Ask them to like Buyer Solutions  Facebook and we will keep them informed of details for information sessions we intend to run in 2015 for parents and first home buyers.  Experts will share strategies on how to do this safely and most favourably.

For up to date information on what’s happening in real estate in Melbourne, contact Janet at  jspencer@buyersolutions.com.au or 0418 101 146.

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