Starting a family is not all about raising kids and rearing a different path ahead of the later years. It also involves guiding the adult child to make sound decisions, such as buying their future home.
In today’s society, millennial homebuyers may find themselves still in burden with their previous student loans and the responsibility to take good care of their parents. That is why some think that owning a home should come later when they are about to get married.
Indeed, buying a home is not an easy endeavor, significantly with rising home prices and strict mortgage requirements. Due to these circumstances, a young and adult child seeks parents’ assistance to guide them with their homebuying decision.
As a parent, having the means to help your child buy a house or an apartment is a huge undertaking. So, before signing anything, make sure that you are ready to provide adequate help and advice at all times.
Here are some ways to help you further in assisting your child when getting a new home.
Let your child live with you temporarily
As a way to help your child become financially stable, let him or her live with you temporarily. This way, your child can have enough money to save and use later as a downpayment.
It will relieve your child of the financial burden of monthly rental payments. Also, it will give them time to fix any financial problems before buying a property.
Buying it under your name
It is expected that parents buy the property under their name.
However, before doing this, think twice. This can become a problem soon, especially if your child is still not financially stable. This is a better option if you want to give the property as a gift to your child.
Gifting the downpayment
If you cannot buy the property under your name, try giving the downpayment for the house. It will be a huge help already for your child since the only thing they need to think of is the monthly mortgage.
Buy a multi-unit property
When buying a place, you can consider having a home big enough to have roommates’ space. Renting some parts of the house or a room can help you with the cost.
Co-own the house with your child
It is better to propose co-ownership with your child since your contribution would already be enough to fulfill the home’s equity. In the future, when you decide to sell it, you can still get your money back.
Buying the home under “real mortgage”
Another alternative to help your child is to become the official financier of the house. However, make sure to have it as an official mortgage. This is to instill a sense of responsibility to your kid.
Also, get a mortgage servicer to help you in structuring the loan and its payment terms.
Educating them about the home buying process
If you do not want to help in terms of money, try educating your child about the whole home buying process from the very basic until the papers’ actual signing. Doing this can help them picture out how complicated it can be. You can discuss with them the purpose of real property listings too.
Ask realtors to provide helpful information during the presentation
Some realtors are allowed to discuss a presentation in front of clients.
Let your child attend this orientation since it can help have a good grasp of the real estate industry. If you are a realtor, make sure you have enough compelling photos as well to show. If you need help with property photo editing, try looking for some established companies to enhance the images.
These are only eight ways to help your child own a dream house.
Other options are still available, but it is up to you as the parent to evaluate which one can better help your child. In the end, it helps to consider all the choices you have in mind before committing to any of it.