Buying means some advice
June 22, 2012 Leave a comment
If you have children over 25 that are still living at home and finding it hard to move out. First National Real Estate has some advice for you.
Recent studies have shown that those in the 25 to 29 age group are living at home longer, certainly more than previous generations did.
What with interest rate rises, and housing affordability at an all time low, the Australian dream of home ownership is becoming even harder, particularly for Generation Y.
Don’t despair, though. Here are some tips you can use to responsibly help your children prepare themselves for their first home purchase.
As an initial step, seek the advice of a financial advisor who can establish a savings plan and budget to track expenses as well as identify the areas of expenditure to cut back.
If you are considering assisting your children with a loan or a donation for a deposit. a financial advisor can also help.
With any property purchase it is essential to conduct thorough research, especially considering mortgage options.
Often mortgage brokers won’t charge for advice and are a good place to start researching which mortgage options are available to suit the individual’s financial situation.
The purchase of a first home is an investment and should be viewed as such.
Getting onto the first rung of the property ladder represents an investment over the long term, so first-home buyers should take their time and get it right.
In doing so, one of the most important things parents can do is to keep things real for their children. In other words. you should talk about the types of sacrifices your children may have to make in order to save for their first home.
They may need to compromise initially on location or furnishings or even the amount of work that has to be done on the property to get it the way they really want it.
Flexibility is key to getting that first all-important step right.
If you are letting your children stay at home to save for a deposit, why not consider charging a nominal and affordable rent which you can secret away into a savings account and present as a contribution towards moving out when the time comes? This will assist children to understand how important a budget can be and how the real world works.
It will also as help them get their deposit together, or they can use it towards those up-front costs of purchasing a property such as conveyancing. stamp duty, legal fees, insurance and utility connections.
For more information, visit the website firstnational.com.au and order your free copy of The Ultimate Planning Guide to Real Estate.
Source: Northern Miner, Charters Towers 01 Jun 2012