Call us on 1300 794 893

Your Money

How can I help my son with property investment?

My son wants to buy a home as he’s getting married soon, but he just can’t afford it, despite the fact he has a great job and he wants to move back home to save up for a deposit. What should I tell him?

Presuming you like your son and your daughter-in-law to be, I’d consider a deal. Get them to create a plan based on what they earn and can save. You’re being nice letting them come back home, but you should make the deal business-like so they don’t get distracted. A savings goal should be established and a timeline created. The disciplined approach will teach them a valuable lesson for life.

Another option could be for them to borrow for an investment property while they live with you. The tax deductions could help them save and could make it possible for them to move into the rented place after a few years of pay rises. Also, three years of capital gain on the rented property could help the couple build up enough wealth to buy another property.

Whatever you decide, make sure there’s a plan.

For advice you can trust book a complimentary first appointment with Switzer Financial Services today.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

Related articles

The highs and lows of owning property

What'€™s the real cost of a dream home?

Is the Gold Coast a golden opportunity?

Smart property plays for 2012

Money tip #7 – property investment

Published on: Wednesday, May 25, 2011

blog comments powered by Disqus
Pixel_admin_thumb_300x300 Pixel_admin_thumb_300x300 Pixel_admin_thumb_300x300