An interesting way to help your kids into a home

I'm more concerned about misappropriating Nanna's hard earned cash

Tell me if I've got the sums right:
$18.5k into the offset, interest rate at 4.14% = $765 p.a.
$18.5k into savings at 2.79% = $ 516 p.a.

 

That is a fair enough reason.

And your maths is correct. Not sure what when wrong with my calcs.

But there will come a time when each child will reach the threshold - $416 pa I think.

 

At that point there might be enough in the account for a unit each

 

I've got a new build IP just completed that is earmarked for my daughter. I'll keep it IO until she is of age, then IF she's proven herself she can take over the mortgage. Not a free house, but probably half price by then.

 

That's it Biz, cos you have done well does this mean you will help your children, if you have children, a leg up?

MTR

 

IMHO, best to teach how to fish, as long as your kids know that you have their back, they need to be taught the value of money and that it needs to be earned. Lots of young people out there who heavily rely on their parents for money, car, home, comfort, holidays etc - however it doesn't teach them important life skills for the long term.

 

I don't even think I have done that well compared to other people I see. I'm Just having a go.

I have children, I will help them, give them more than enough guidance, even a bit of a hand out $$$ to get them going but that is it. If they can't cut it in the real world hand balling them a paid off apartment isn't going to make them better people. They have to earn their stripes like their mum and I did

 

We made sure our children had a good education, all completed university and all have post- grad qualifications. They are all living in homes they have bought themselves.

Of course they all knew we were there if they really needed it, but thankfully they have enjoyed the achievement of acting independently regarding buying homes.

There are affordable options out there for beginners, so long as the young ones don't think they have to start out in popular inner city areas.
Marg

 

Will you be able to access Super at 67 in thirty five years? With the way medical science is going life expectancy will be higher plus the government has change the rules before. I'd rather buy them an IP each than rely on Superannuation shenanigans

 

Exactly my thought. I don't exactly trust the government to keep the super access ages at their current level.

Alternative is to use the funds to accelerate repayment of PPOR and then allow them to use a guarantor/provide them with a private loan/gift when they're ready - then they can also get into property sooner. (we all know how helpful that is)

 

I agree with my comrades @Steven Ryan and @Biz I'll be teaching my kids to drive before I give them the keys to the car

 

I think it's great to teach children the value of money etc etc. but they will probably learn more by your actions than what you say.

I also believe in helping children today and if I can help them financially why not ? Its not a crime, I know they will benefit greatly and I think they are mature enough to understand what this means. For example paying their Uni fees is a leg up in life, they appreciate this, in fact they both working hard with studies and youngest holding down part time job to pay for her overseas trip.

Is there some rule that states they all turn into brats ?? and what is too much?? we are all different and what you or I perceive as the best way could be totally wrong. I can only gage it with my own children and the relationship I have with them whether its working well etc.. I think if you have great children you must have done something right and whether you chose to buy a house or give them a rubber ducky it wont matter either way. What matters is what you are doing as a parent.

MTR

 

@MTR it might not be your kids you have to worry about but who they end up with.

 

So far, my kids (6&9) understand the terms Rent, Landlord & Investment.

 

Biz
we all do