With rising house prices, it's becoming harder for the younger generations to be able to get into the housing market. More younger people are renting or moving back home with their parents to save money, or they are forgoing the housing market altogether. Can you buy a property for your child? Yes, you have a few options in which you can help your child get into the market.
Down Payment
One of the ways you can help them buy a home is to give them or loan them the down payment they will need. One of the hardest parts of buying a home is saving enough for an adequate down payment while knowing you can make the monthly mortgage and bill payments. If you are able to, you can either gift your child the down payment (this way you don't have to pay taxes on it), or you can loan them the money for it.
Keep in mind, however, that even if you give them the down payment money, they will still need to qualify for the mortgage on their own. They will need to prove that they have a stable income and money in reserve, enough to pay the monthly amount.
Buy the Home and Rent It
Another way you can help your child get into the housing market is to outright buy the home yourself. You can then rent the home to your child and this rent can act as their payment toward owning the home. You will have to declare this money as income on your taxes, but it is a good way to help those struggling to get into the market to do so.
You could also buy the home and simply let them live there rent-free. If you intend for them to have the house eventually anyway, you can add the home to your will and your child will inherit it. Along the same lines, you could buy a multi-property home, such as a triplex and rent out the other units.
Co-Signing
One of the most popular ways to help your child buy a home is to co-sign for the mortgage along with them. You could agree to help pay for half or even a quarter of the mortgage and they pay you back over time, or simply agree that if something happens to their income, you will take over the payments until they are back on their feet.
You should know that if you go this route, you may be required to have your name on the title itself.
After thinking long and hard about what kind of home to buy, I began talking with a real estate agent about getting a deal that I could live with for the rest of my life. I really wanted to find a home and a deal that offered pleasant terms for me and my business, so I began focusing seriously on getting things done. It was amazing to me to see just how different various real estate deals were, and before I knew it, I was making some changes that would work for my lifestyle. Within a few months, things were a lot better. This website is all about understanding and applying real estate deals.