How can a 13 year old buy property

Discussion in 'Investment Strategy' started by hozi, 21st Jul, 2017.

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  1. hozi

    hozi Well-Known Member

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    Article in SMH about 13 year old buying a property I thought you had to be over 18

    All well and good but where does this leave the teenagers. Teenage years are already tough for some
     
  2. Archaon

    Archaon Well-Known Member

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    Guarantor perhaps?
     
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    cash

    and u dont need to be 18 to enter a credit contract

    thats the legal position of the lenders............ i am sort if sure there is no legal requirement for a borrower to be 18 +

    ta
    rolf
     
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  4. Marg4000

    Marg4000 Well-Known Member

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    According to the article, the parents bought the property. Two children allegedly contributed their pocket money and are assisting with the renovation.

    The headline was totally misleading. Who is surprised?
    Marg
     
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  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Minor children can own money and borrow money.

    One strategy is for mum and dad to lend money to the kid to buy the property.
     
  6. Otie

    Otie Well-Known Member

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    Can kids under 18 get bank finance for IPs if they have income from part time job etc? or is there an over 18 lending criteria with banks? Can titles be in the kids names?
     
  7. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    I don't think a bank would lend to a kid,
    Titles can be in their names.
     
  8. Ted Varrick

    Ted Varrick Well-Known Member

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    "The contributors to credit growth should be many and varied." - Ted Varrick, PropertyChat.com.au , 2017.

    And so new markets are created, and pets are the next frontier.

    Rover needs $10k for a new doghouse? Sure no problems, as long as there's a parental guarantee from the pet owner...
     
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  9. Big Daddy

    Big Daddy Well-Known Member

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    here are a few notes i collected on the subject some time ago

    In most cases, a minor can enter a contract and own a property, but the problem comes for the people on the other side of the contract as they can't enforce the contract if something goes wrong.
    So anyone who enters a contract with a minor runs a greater risk that the child is not going to see it through. Unlike with an adult in a contract, the other party can't enforce the purchase or keep the deposit of the child.
    Minors lack capacity to understand or enter certain arrangements and therefore can't be bound by them.Despite it being uncommon, children can own property. For example, most states require the date of birth to be noted on the certificate of title to show the owner is a minor. This is so future prospective buyers will know they are buying from a child and therefore the same enforcement issues arise with the contract.
    MORTGAGES
    A contract for the repayment of money lent to a minor will not be binding on the minor.
    "Potential financiers tend to shy away from the prospect of engaging in a legal stoush with a minor to recover money.There are exceptions to this which allow loan contracts with minors when they are members of a building society or co-operatives. Another option could be a formal but private loan to the child from a family member or parent.
     
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  10. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    With a name like "Big Daddy" you must have some children!

    There is legislation about children entering contracts and the contracts can be binding and enforceable. Children can also borrow money and give mortgages over property too
    See MINORS (PROPERTY AND CONTRACTS) ACT 1970 for nsw
     
  11. Owlet

    Owlet Well-Known Member

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    Can a minor (for example 16 year old) buy a PPOR? Parents lend child the money, the child and the parents occupy the property - it is not rented. The child sells the property once 18 CGT free? Can they apply for FHG?
     
  12. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes they could have a main residence. Don't know about the FHG, in the past it was possible
     
  13. Zoolander

    Zoolander Well-Known Member

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    Soon this satirical article will become reality.

    What Crisis? - How To Buy A Sydney Apartment On A $29,000 Salary — The Betoota Advocate

    “It was my goal as a little girl. My parents were always buying property and having fights — I didn’t want to be poor my whole life, but I could deal with being unhappy,” she says.

    “Using your parents as a bank is the wisest option for gen Y-ers like me,”

    “I saved $2,500 — my parents lent me $127,500,” she says.
     
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  14. DaveM

    DaveM Well-Known Member

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    Give it a few weeks, will be announcing he/she is becoming a mortgage broker or buyers agent
     
  15. Honour

    Honour Member

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    Not long ago I approached a bank with my 17yo foster child (who has severe autism & types to communicate) to see if he could borrow money for a small beachside country property. He has to wait until he is 18 before he can borrow.
     
  16. Dan Donoghue

    Dan Donoghue Well-Known Member

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    Hahaha that is brilliant, even better were the comments where people thought it was real LOL
     
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