You don’t have to go it alone to get into the property market, says the Real Estate Institute of Queensland.The REIQ says there are a number of options available for those who may not have the wherewithal to purchase a first or new home buy themselves.
We'll examine one option today - "Mum and dad finance"
Baby boomer parents are increasingly helping their children into the property market. Creative ways they are giving their children a "leg up" include co-buying where the parent(s) provide the equity and the children take responsibility for paying the debt.
The other arrangement is by way of a guarantee. The traditional bank guarantee has been replaced by a product that allows a parent to guarantee an amount to supplement the borrower's deposit.
The size of the guarantee can be limited to a specific amount which protects the parent from losing their home should the child default on the loan.
"While declining housing affordability is making it increasingly difficult for first home buyers, as the Queensland property market is taking a breather from its strong results of last year, opportunities currently exist for buyers who can afford to enter the market," Mr Molloy said.
If you are considering this path, please talk to us about getting reputable legal advice. We deal with exceptional property lawyers and can help ensure you get the best advice. Contact us on 1300 911 576 or send us an email at enquiries@morpheusproperty.com.au.
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