If you’re helping adult kids buy a home, what should both parties consider?
Luke Smith, Financial Planner, joined 2CC Talking Canberra 1206AM in The Money Show which aired on Friday 8 July 2022. This week’s topic is one many modern families will face: What happens when adult kids come to ‘the bank of Mum and Dad’ to help them buy a home? Facing high home prices, many parents are helping their kids secure their first home. And while buying a first home is a big life milestone, it’s not without risk for parents and adult children themselves.
Key topics covered include:
– Parents want to know they’ve done the right, Mum and Dad need to be protected too!
– Why not make it a loan and not a gift to buy a home, even if there is no interest?
– What happens in the event of a relationship breakdown or if someone should pass?
– The importance of documentation and seeking advice from a solicitor.
– If a parent requires the money back due to illness or injury, what happens to the loan then?
– Additionally, what is a non-refundable gift declaration and why might a bank want one if you don’t have a loan agreement?
– Luke offers some key ideas around helping adult kids get ahead.
– Remember, it’s not just about love and trust, it’s also about being responsible.
Listen to the Podcast right now
Also available on Apple Podcasts and Spotify ‘The Strategy Stacker – Luke Talks Money’
Do you need advice around helping adult kids buy a home?
Luke as a Financial Planner can help you set up a financial planning strategy to help you achieve your personal financial goals. Make an appointment to confidentially discuss investment, super, and retirement planning. Call Envision Financial Services on 6260 4749. You can also use our contact us form to make an appointment for a confidential discussion about your situation. Luke can also refer you to a solicitor for loan and legal agreements, if you want to help your own adult kids.
Luke will return to talk about financial planning on 2CC next Friday. You can also catch up with The Strategy Stacker – Luke Talks Money podcast.
We look forward to your company again.