Circumstances changed? We make it easy for you to upsize or downsize Despite all the planning you do, life certainly has a way of taking control… Circumstances change and the place we call home can often need a change as well.
Want to go bigger? Is the pitter patter of little feet forcing you to think about a bigger place? Maybe you’ve simply outgrown your first home or need space for family to stay? Perhaps you want an investment on the side or crave a getaway to escape to? Or maybe you’ve made the decision to be in a certain school zone – we know that, here in Auckland, school zones influence home buyers more than anywhere else in New Zealand!
Looking to downsize? Maybe the kids have finally bolted, you’re retiring, or you just want to free up some of that capital in your home
You’ve got the idea, but how do you make it a reality? If you’re wondering ‘Can I do this and still end up in a good position financially?’ or ‘Where do I even start?’ we can help you get clarity on what your goals are, and what’s realistic and affordable for you to do.
So, let’s have a chat – give us a call, or drop us a line.
With the Auckland market speeding away and leaving many first home buyers floundering in its wake over the last few years, more and more parents are getting on board to help their kids out.
If you’re in a position to do it, good on you. It may even be more possible than you think. The equity you have off the rising market can make it pretty comfortable to achieve.
Why not give them a great start in the market and set them up for a solid future in property ownership? But before you grab the cheque book, there are a few things to think about.
By gifting money
If you’re feeling particularly generous, you can gift money towards a deposit. The gift doesn’t have to be for the full deposit, it could cover the difference after any cash your child has from KiwiSaver or their own savings.
The Bank of Mum & Dad is usually a little more flexible than their corporate counterparts. You can set up a loan to your kids on terms that suit you. Perhaps it’s structured where nothing is repaid until the property is on-sold in future, a kind of version of a gift. Or perhaps repayments of interest or principal are required – this will affect how much the bank will lend the kids, but can still be a very helpful boost to their deposit.
This means using the equity in your home to make up the deposit for the property your child wants to buy. For example, they might have 5% cash, plus a guarantee equal to 15% from you. Learn more about going guarantor and the possible risks.
Buying a rental property can be a great little nest egg to crack open when your kids get to the point that they want to buy a place. If you’ve got a bit of time before your kids will be asking for a hand, it could be a profitable strategy.
It all comes down to where you’re at, and figuring out what will work best for you and your family.So have a talk to us – we’ve helped many clients plan for their, and their children’s future!