The current booming property market has reportedly led to more parents guaranteeing loans, mortgaging their own house or lending money to their children so they can buy a house.
Read the report here.
Before you, the Bank of Mum and Dad, decide to help out the kids in this way, we suggest you first obtain independent legal, accounting and financial advice to review your options and discuss potential legal issues.
Some of the legal issues to consider include:
You should also consider:
From a legal point of view, generally we recommend at least written loan documents and a registered mortgage.
We can advise you in relation to a proposed loan to your children as well as help you document the transaction and the security. To make a time to discuss your personal circumstances simply send us an email or call 07 3220 1144.
The information in this blog is intended only to provide a general overview and has not been prepared with a view to any particular situation or set of circumstances. It is not intended to be comprehensive nor does it constitute legal advice. While we attempt to ensure the information is current and accurate we do not guarantee its currency and accuracy. You should seek legal or other professional advice before acting or relying on any of the information in this blog as it may not be appropriate for your individual circumstances.