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Helping Your Kids Up the Property Ladder

Property Investment Advice in Melbourne

Helping Your Kids Up the Property Ladder

Despite the real estate market booming, it’s rarely been harder for first-time buyers to break into the property market. For many young purchasers, having mum and dad give them a small helping hand can be invaluable. There are a few options you can pursue if you want to help your kids get their foot in the door of the property market.

Act as a Guarantor

If a lender has some hesitations about approving a loan, particularly if the applicant doesn’t already have a substantial deposit, it is possible for a third party to act as a guarantor. This can be a useful way to help your kids get into the market if they are able to afford loan repayments but want to get in now, rather than spending more time saving for a deposit.

The risk of acting as a guarantor is that if your kids default on repayments, you end up being liable for the loan yourself. So be absolutely clear that they will be able to afford the repayments and don’t sign yourself up to any unrealistic arrangements.


Pooling resources to purchase a property is an increasingly popular option. Going halves in a property with your kids can help them purchase property that might otherwise be unattainable. Just make sure that you are all on the same page about the type of property you plan to purchase and how it will be managed and maintained. Ensure everything is in writing to prevent any misunderstandings down the line.

Invest and Rent to Your Kids

A third option is for parents to invest in a property themselves and to rent this out to their kids. While this doesn’t help the younger generation get into the property market directly, you may be willing to rent it to them at sub-market rates in order to allow them to save for their own property purchase.

Property Investing in Perth

For professional property investment advice, contact Rass Global Investment.


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