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Buying a home is not easy, especially when young adults are just embarking on their career. As one accumulates substantial savings, it becomes a tad easier. But that can take a while. Most people don’t end up with any substantial money till they are in their thirties. Obviously, you cannot have your kids living with you till that age. Regardless of their marital status or if they are in a relationship, kids should move into their own home once they get a job or in sometime.
Salaried professionals have the relative security of drawing a paycheck every month or fortnight. They can conveniently afford to pay in instalments to repay their mortgage. What becomes herculean is the down payment or the initial deposit for the home loan. It is common for parents to pay the deposit. You could pay the deposit entirely if you can afford it. You may pay a part of it if that works. Talk to your son or daughter and then do the math. Don’t make a deposit that will dent your fortune heavily but only pay what you can spare or find worthwhile.
You can have certain plans in place to find that deposit or whatever amount you wish to contribute towards the home’s purchase. Remember, there is a minimum requirement of a deposit or down payment which will vary depending on the price of the property. There is no upper limit. You can always consider selling your investments, such as a rental property or any such real estate asset you have to fund this. Depending on the equity that you have available, this could fund a good deposit or perhaps a bit more to help out your kids.
Not everyone has an investment property to sell. If you don’t have any such asset, you can monetise your primary asset which is your home. We are not talking about refinancing or a second mortgage. You can opt for strata titling. Strata tiling will allow you to sell a portion of your house and you still get to have your own space untouched. You can raise some significant money with strata titling. As you age, larger houses are more difficult to manage and maintain. Strata titling makes sense from that perspective as well. Check out our article on Strata Titling.
If all other options don’t work, become a co-signer. This will help your child with the mortgage application as well.
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