The real estate market can be tough for young adults, but as a parent you may be able to lend a helping hand. We tell you how. 1. Parent-to-child loan A parent-to-child loan is when a parent lends their child money. This is a formal, legally binding arrangement, administered by an independent third party. At the start of the loan period, both parties agree to terms including repayment amounts, a schedule and a process to manage defaults. Benefits: You can set generous terms for your child, but your assets, savings and credit rating are somewhat protected as you are not the borrower. Drawbacks: There are legal implications for your child if they have a spouse and the relationship breaks down,
When people buy property together, particularly if it’s with a partner or spouse, they often register the title in both people’s names – especially if they’re going to live in the property. But other arrangements are possible, several friends might opt to own individual shares in a property, for example, or a couple might choose to have only one of their names on an investment property title. The following information provides you with a good starting point to help you on your way. Also tax legislation and other Australian laws governing property ownership and investment are complex, so seek proper legal and financial advice before entering into any arrangement. Joint-ownership titles The t
Renovating a property can be a sound path to success as long as you approach it with a level head, a keen eye for numbers and a sharp pencil. The strategy has also gained popularity for other reasons. If you desire an awesome pad in a great location but lack the ready dough to buy your dream palace upon the hill, a renovation project could help get your foot on the ladder. A well-positioned fixer-upper is a terrific opportunity to become one of the haves – when you’re forearmed ith the right information, that is. This month, Herron Todd White thought it high time they tackled renovation potential in suburbs across the nation on an office-by-office basis. The team are ready to take on th
At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent. The broad-based pick-up in the global economy is continuing. Labour markets have tightened further in many countries and forecasts for global growth have been revised up since last year. Above-trend growth is expected in a number of advanced economies, although uncertainties remain. In China, growth is being supported by increased spending on infrastructure and property construction, with the high level of debt continuing to present a medium-term risk. Commodity prices are generally higher than they were a year ago, providing a boost to Australia's national income. The prices of iron ore and coal, howe
