It’s always a difficult and emotional time when your first kid moves out of the home to gain their independence. That might be to go off to college, but chances are they won’t come back after this. Instead, they’ll start looking for their own home and their own place to live. This can mean renting a place or buying their first home, but they will definitely need your help to do this. Here are a few steps you can take to ensure that they don’t have any issues getting their first home.
Give Them A Loan
If you want to make it as easy as possible for your kids buying their first home, you should think about giving them a loan. This must be treated as a gift payment, otherwise, it can be taxed to death. When you give your kids a loan, it means they’ll be able to put down a larger deposit on the property. In doing so, they should be able to open up some of the better mortgage deals on the market. This is going to make the house easier to pay off. The only issue you’ll have to deal with is that it might take a little while before they are in a position where they can pay you back. However, the benefit is that it provides some financial levity to your kid.
Kitting It Out
One of the other financial issues when buying a new home is kitting it out, as you probably already know. The answer to this problem is to recommend that your kid rents rather than buys appliances. By doing this, they can reduce the overall cost of setting up their home and instead pay it little by little. Most kids will probably be unaware that appliance rental is even an option, so you’ll have to recommend this too them.
Buy it As An Investment
Of course, there is another way that you could help your kids financially when they are buying a new home, and that’s to buy it yourself as an investment. If you do this, then you can charge your kid rent, making money off the property while still giving them a place where they can live independently. If you do this, it’s important to remember that the home will still be your kid’s not yours. As such you can’t tell them how they should use it, except in a way that a landlord would guide their tenants.
Price Check Services
Last but not least we all know how carefree the young can be. This means that it’s highly unlikely your kid will remember to price check the different services that they use when buying and moving into their new home. As such, you should do this for them and ensure they get the best deals on the market. Otherwise, they could end up wasting a lot of money simply by not finding the right price.
I hope this guide helps you in aiding your kid when they are moving out of your house and into their own home.