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How to help child buy their first property

Many children look to their parents for property advice. It’s all new to them whilst the parents often own a home and perhaps other assets. And it’s no surprise that parents are often all too pleased to share their wisdom.

But with the property market today very different to the one that parents first bought in, will that advice be a help or a hindrance?

In this one-hour webinar, PAUL NUGENT of Wakelin Property Advisory and STUART WEMYSS of ProSolution Private Clients discussed strategies for young adults to enter the property market. 

They considered options for parents to provide financial assistance to their offspring.

Key moment can be found in the tables below.

Issue covered

Time stamp (min:sec)

Paul Nugent starts

00:00

The spread and population growth of our city

00:48

The changing job market

02:10

‘Commutable’ job prospects by area

03:58

Divergence in property prices

04:27

First property: home or investment?

09:22

Asset selection principles

11:04

Stuart Wemyss starts

11:48

First purchase most important

12:10

Going guarantor: the risks

14:10

First purchase invariably not for long-term

16:06

Helping your child: education vs gift

17:22

Equity vs cash flow help

18:25

More than one child?

19:52

Equity assistance: example

21:26

Borrow deposit and lend to child

25:55

Sell child a property for less than market price

27:29

Gift property within a family trust

29:20

Gift property within a unit trust

30:15

Estate planning issues

31:45

Potential for erosion of family wealth if child breaks up with spouse

31:53

Spousal relationships generally de facto after 6 months

32:10

Make help an ‘interest-free repayable loan’

33:40

Co-habitation agreement

34:28

Q&A starts

34:58

Ends

56:19

Questions answered

No.

Question

Time stamp (min:sec)

1

Do you recommend a first property should be for investment or owner occupier?

35:30

2

Best way for a younger person with limited income and savings to get started in the property market?

38:05

3

Buying in a trust

39:21

4

With the number of new apartments coming onto the market in the next 1-3 years, how is it going to impact on the existing home prices?

41:13

5

Different percentages contributed to deposit between child and spouse

43:31

6

Buy in Perth?

45:08

7

Tax implications of selling property to child at purchase price from a few years ago

47:41

8

Hold off until mid-next year before buying?

49:43

9

Buy a property for child near their university they are studying at?

51:36

10

Are Box Hill or Doncaster good places to invest in given they are good suburban business centres, and they are doing quite well at the moment?

53:41