This week we bring you part 6 of our 7 part series on ways to save for a home deposit (which are excellent tips, no matter what you're saving for)! We share an article by Nila Sweeney, Managing Editor of Australia’s leading property investment magazine and active property investor herself, who has been writing about the Australian property markets for more than eight years. Nila's next tip is:
PARENTS HELPING THEIR CHILDREN
There's nothing more satisfying to a parent than being able to give their child a head start in life. With house prices going through the roof, it's a big ask to expect parent to stump $50,000 or even $50,000 in cash to help their children buy a place of their own.
But what if the parents had started putting a little bit aside from when the child had been born? Just imagine how much could have been saved in all that time. The illustration below says it all:
Initial investment amount - $1,000 Additional monthly amount - $100 Terms: 10, 20 and 30 years Investment: 5 per cent (cash); 10 per cent (growth assets) Tax and inflation: N/A
Parents and family
Parents and family are usually a good source of assistance, whether monetary or otherwise. Parents or other family members may be able to help you get a deposit together either by way of gift or interest-free loan. Even a few thousand will be a tremendous advantage to your savings strategy so never scoff at a helping hand.
Another tangible way family can help is by providing you with rent-free accommodation. For example, if you are paying $300 a week in rent, 3 years of rent-free accommodation adds up to $46,800. This is a gift worth its weight in gold so if you have the opportunity to take advantage it, do it.
Stay tuned next week for the final tip in this series!
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This information may be regarded as general advice. That is, your personal objectives, needs or financial situations were not taken into account when preparing this information. Accordingly, you should consider the appropriateness of any general advice we have given you, having regard to your own objectives, financial situation and needs before acting on it. Where the information relates to a particular financial product, you should obtain and consider the relevant product disclosure statement before making any decision to purchase that financial product. This document, including all tax and super calculations, has been prepared using legislation in place as at 1 July 2017.
Source of article: https://www.yourmortgage.com.au/home-loan-guide/double-your-deposit-in-half-the-time/77846/
Source of image: http://www.hamhigh.co.uk/property/second-time-buyers-struggle-without-help-from-the-bank-of-mum-and-dad-1-5080714