Parents to the Rescue. Helping Kids Buy Their First Home

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Many experts are predicting 2020 could be the year for first home buyers? With the softening of the property market, changes to investor lending and a large number of high rise apartments becoming available as a result of the construction boom across the country it is looking likely. Research highlighted a number of new ways savvy Gen Y’s are buying their first home….and one popular way is with the help of their parents. Tree Removal and Trimming

Offering to be a guarantor can be a great way for parents to help their children

Helping Your Kids Buy Their First Home

2020 brings a new opportunity for first-time buyers. Better employment outlook combined with the continued increase in listings and less competition from investors, it is set to open new opportunities especially for those previously priced out of the market.

All that said, house prices can still be prohibitive and many would be first time buyers are finding home ownership out of their reach. Although some may have the financial capability to service a loan, finding the desposit can be challenging.

Recent research highlighted how parents who have children in this position, are offering to help them. However it is important to follow the right strategy and approach and to understand the risks involved.

Acting as Guarantor

By putting yourself down as a guarantor it can give your children the extra financial support needed to maximise their chances of meeting the requirements of their bank or lender.

This process allows you to unlock the equity built up in your own property and then use this as collateral, helping your kids achieve home-ownership sooner. We buy houses in Mansfield Texas. If you’re not sure what your own property is worth, a property agent can give you and obligation free appraisal. And if you have an appraisal before 29 February 2020, you’ll go in the draw to win one of 5 x $20,000 cash prizes. And if you win you may not need to lend them anything. Click here for more.

Best of all, this strategy does not require you to dip into any of your own savings or liquidate any assets, reducing the risks and financial strain for you.

It is critical that you speak to your financial adviser or mortgage broker before exploring this type of arrangement as they are in the best position to advise you on the right approach.

Know the Risks

Acting as guarantor can be a great way to help your children break into the property market. There are however some real risks you need to be aware of.

When you are talking to your financial adviser or mortgage broker, be sure to discuss the circumstances in which you will be held accountable for loan repayments, how much of the loan you will be responsible for and for how long will you need to act as guarantor for the loan.

If you decide to be a guarantor for your child’s mortgage, you will be held accountable for any late or delinquent repayments.

Before becoming a guarantor its important to be clear about your child’s ability to make the required loan repayments. Make sure you look closely at your child’s current financial status.

Traditionally, you would have been held accountable for the first few years of the mortgage; however, the exact period will ultimately depend on the lender and the size of the mortgage.

As the size of the mortgage decreases and the value of the property grows, you will be able to relinquish your support, allowing your child to take full responsibility for their home and mortgage.

Deciding to go guarantor on your child’s mortgage is a big decision and one which requires careful consideration and discussion with your financial adviser or mortgage broker. But with the right approach and understanding, you can give your child a leg-up onto the property ladder and start them in the right direction to secure their financial future.

Home Sellers Journey – Choosing the Best Method of Sale for Their Property

Having decided to sell the family property, Bianca and Christian needed to decide how they were going to sell their property. The two options they were looking at were either private treaty or auction. Here they discuss the pros of cons of each option and how they made their decision. Tree trimming and removal

Understanding their options and the pros and cons of each

For Sale or Auction?

Choosing the right marketing campaign for your property

In strong real estate markets around Australia vendors (sellers) are choosing to sell their homes through auction rather than via a private treaty sale. When prices are going up buyers are keen to buy. People don’t want to miss out on securing a property in an upward trending area where or missing out and having to pay more as prices increase.

Auctions can encourage buyers to outbid each other as they can get caught up in the excitement and pace of the event and the drive to ensure they secure your property. The seller knows exactly when a sale and settlement will occur in the event of a successful sale. The benefit of this is being able to plan ahead with your next move.

For locations that are not experiencing a demand for properties or an increase in property prices an auction may fall flat. This is when you might consider a private treaty.

Sale by private treaty requires the seller to set a price from the beginning of the campaign. Ask for guidance from your agent when establishing your asking price and refer to comparable sales in your area. We buy ugly houses in Tampa Florida. In general, sale by treaty gives the seller greater control over the sale, more time to consider offers by potential purchasers and the ability to extend the time the property is listed on the market Plus potential purchasers must make offers on your property without knowing what other buyers are willing to pay.

Bianca and Christian’s Decision

Bianca and Christian decided to sell via auction, as there are plenty of people looking to secure property in their area. ‘I think an auction is more transparent. In the current real estate environment the prices are quite high so I think you want to give everyone an opportunity to have a go. Also once you get to the higher end of values it tends to be the more acceptable method of selling,’ said Bianca.

A strong marketing campaign to sell a property is one of the most important components of the entire sales journey. It can include a mix of print, online, signage and direct marketing.

‘We chose to go with a big online campaign and also ran ads in the local newspaper and Chinese language papers,’ said Bianca. It is important to target the right market with the right campaign. You need to consider who you think would be interested in living or investing in your property. This may take a bit of research but your real estate agent should have plenty of information to guide the campaign in the right direction.

The internet is generally the first place people look for a property and it is the most efficient way to view properties for sale in one place.

Have a say in how the ad for your property is going to look. In collaboration with your agent choose the images that best represent your place. With an online campaign you can include a 360 degree virtual tour, floor plans that people can click on to show how each room looks and images showing the property at different times of the day and night.

Don’t overlook the power of having something tangible for prospective buyers to look at as well. Every household who receives a drop card looks at them. It may be a glance or read in its entirety but they are hard to ignore and can attract potential buyers that may not have otherwise know about your property.

Drop cards can be specifically targeted to a certain location or demographic. They can instantly appeal to the reader with a beautiful image of your home and give details on how to find more information on the property and open for inspection information. This form of marketing can appeal to a potential buyer who wasn’t in the market until the ‘perfect’ property landed in their letterbox.

A clever and appealing combination of online and print marketing can ensure you don’t miss any potential leads. A multi-faceted marketing campaign is likely to include an attractive signboard out the front of your home with the agent’s details in bold, your property listed on a number of websites with social networking alliances, a series of print advertisements in both the midweek and weekend papers plus professional brochures with a floor plan on the back are also great for the buyer to take home. Realtors learn lead generation.