You might have worked hard to get to where you are in life. Not only have you bought your own home, but you’re also trying to successfully raise your children into adulthood. However, the cost of living has raised dramatically since they were born, meaning it may not be as easy for them to buy their own home. Due to this, you may want to think about the different ways you could help them afford to do so. Even if your children are still quite young, you could put plans into place to prepare for the future.
Research the real estate market
If your kids are close to adulthood or have already expressed an interest in owning their own home, you might want to do some research into what the real estate market is like. The number of homes listed by Compass real estate could give you an indication of the current climate, including the size of down payment you may need. A real estate broker may be able to inform you about any changes in cost they may be likely to see in the near future, as well as the different documents and other charges that can coincide with buying a home.
Save as soon as possible
One of the struggles that your children may face, once they reach adulthood, is being able to afford rent and bills while simultaneously attempting to save for that down payment. If your children are younger, or not in too much of a rush to buy their first home, you might also want to think about having savings accounts for each of them. By utilizing some fairly standard saving tips you may be able to create a pool of money for each child. When they reach adulthood or are preparing to buy a house, this could be added to any money they have managed to accrue. This could make it significantly easier for them, even if it doesn’t cover the full cost of the home.
Become a guarantor
There can be many reasons why a child may struggle to buy a home, even in comparison to some of their siblings. One problem that many young people face can be an increase in student loan debt. They may have attended college in the hopes of a good job, but still, be a long way from that goal. To facilitate their purchase on their current income, you might want to think about becoming a guarantor for their mortgage. This may even take your own credit history into account. However, when using this option, it’s important to remember that, should your child default on a payment, you may also be held accountable.
There are a number of ways you could aid your child with buying their first home. Some of these options can come with a higher level of risk than others. However, it could help your child to avoid getting stuck with high rent as an adult and even gain independence.