Helping hand to purchase IP for young adult kid

Is this scenario possible:

The kid earns approximately 50000/year.
Live at home, no expense, no relationship yet.
Has saved small amount of saving for stamp duty etc.
Expect to earn rental income gross approximately 20000/year.
Purchase price approximately 500000.00
Avoid LMI, Maximum borrowing approximately 400000.00
Borrowing capacity IO approximately 400000.00
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To assist the kid, would it be best to gift 100000.00, in this scenario?
Or is there a better option?
As a parent, assisting with shortfall regularly/monthly can be considered.
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If they can only service $400k it will have to be a gift. If you loan it, it will have to be included as a liability which will further reduce their borrowing capacity.

Normally, just a letter stating the gift isn't repayable is fine.

 

https://propertychat.com.au/community/threads/legal-tipe-12-parents-helping-adult-children.736/

 

Thanks Jess and Terry for the prompt reply. Cheers

 

Best way to help us to teach mindset. Failing that, $100k.

 

Loan agreement to give the 100k.
Make the 100k deductible..

 

Even where the child is purchasing a main residence the loan is generally the way to go - can be interest free.