These days, more and more children are having to rely on their parents for help when trying to save for their first home. Trying to afford a deposit and prove you can pay a mortgage is a substantial financial burden for many young people – if possible at all. The cost of renting has skyrocketed, and securing a home, whether it is owned or rented, is incredibly competitive. Because of this, many people have realised that moving out of their parent’s house is often a more prolonged and more laborious process than they initially thought.
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However, there are ways in which parents can support children. Many parents cannot afford to give their kids the money to buy a house, but there are plenty of other ways in which they can help. If you are watching your children struggle to save a deposit and get a mortgage, here are some ways you can help them to become first-time buyers.
Allow them to live with you.
For many young people, the thought of moving home once they have experienced their first taste of freedom can feel somewhat of a step backwards and an embarrassment. However, if they can live at home for a year or two, either rent-free if you can afford it, or at a less than market price, it may give them the chance to save up and own a property from Make Homes.
Of course, before you all settle on it, everyone involved needs to agree on some ground rules need to be put into place. If they are going to pay something towards their rent, how much and how often will they pay, and what will be the consequences if they don’t?
Offer Emotional Support
Saving for a house can be an emotionally stressful and challenging experience, especially if you have to cut out lots of things that you enjoy doing to find the money. While your child is cutting down on certain things, for instance, limiting how many times they go out for dinner, etc., then offer to take them out now and then so that they don’t feel like they’re completely missing out, or maybe let them tag on to your holidays. While many people have to make sacrifices to own a house, and it is an essential lesson for your child to learn, they still need to enjoy life, and as their parents, you are quite often in a position to help bridge the gap and make life that little bit easier on them.
Most parents will have their own homes, and they will know the process their children are going through. Therefore, impart your knowledge and help them understand how the housing market works, how they can invest their money, and how to go about finding a suitable mortgage broker.
Lend Them the Money
For many people, this is simply not an option, but if you can help your child out financially, you can help to make things a lot easier, whether it is the full amount of a couple of thousand towards fees or moving costs, Again, before you finalise anything, draw up a repayment plan where you decide on the monthly payments they are to make back to you, and ensure they stick to the plan, and again, what will happen if they miss payments.