How to assist your children in purchasing property

Things to be aware of

As a parent, it’s natural to want to help your children as much as possible. However, it’s important to be mindful of a few things before jumping in to assist your child with purchasing property.

Transferring ownership of an existing property may seem like the easiest way to help your child, but it’s important to be aware of the tax and legal implications of such a transfer. Not only will the ATO expect you to pay capital gains tax on the transfer, but your child will also be liable for stamp duty on the property. Unfortunately, it’s not possible to avoid paying tax by declaring the transfer as a gift or by simply stating that the value is zero.

But don’t worry, there are alternative ways to help your children into property without falling afoul of the tax department. Read on for our tips on how to assist your children in purchasing property.

Different ways to help

There are various ways in which parents can assist their children with purchasing property. Some options include:

• Deposit gifting
• Providing a loan
• Going as guarantor
• Co-ownership
• Creating a Family Trust

Each option has its own pros and cons, so it’s important to carefully consider which method would best suit your family’s financial situation and goals.

Conclusion

As parents, we all want to see our children succeed and help give them a solid foundation for their future. One way to do so is by assisting them in purchasing property. However, it’s important to set up the right structures from the start to ensure that your gift doesn’t come with unexpected tax implications or legal issues down the road. By considering options such as creating a Family Trust, not only can you ensure asset protection, but you can create a financial safety net that will support your children and future generations for years to come.

Property investment remains one of the most reliable methods of financial success and wealth preservation, especially within the context of a family. At Ironfish, we can help you climb the property ladder so you can provide your children with a solid foundation for their future.

When it comes to helping your children invest in property, it’s important to work with a reputable and experienced property investment company like Ironfish. We have over 16 years of experience in the industry and have helped thousands of families achieve their financial goals through property investment. Our team of property investment strategists provides personalised guidance and support throughout the entire process, ensuring your family’s wealth is protected and maximised.

We’ve endured a property market roller coaster ride over the past 12 months, and a tidal wave of change over the past 3 years.

Australia’s real estate market rebound is well underway. The real estate crash, bubble and bust did not happen. Instead, we’re on the precipice of the Wealth effect.
So, stop paying attention to the clickbait doom and gloomsters and start paying attention to what we actually know about the Australian property market. It is dynamic, it is resilient, and it is growing.

The big question…will you jump on the perfect storm of opportunity or wait and watch on the sidelines?
We’ve compiled the 7 trends defining 2024 so that you don’t get sidelined.

Who will benefit the most in 2024? Tune In as Grant Ryan ends the year with his annual must-know trends:
1. What’s in store for the property market in 2024
2. How housing demand is creating the ‘wealth effect’ over the next decade
3. Big cities are making a comeback and fast-tracking housing supply
4. The decade long rental boom… no signs of slowing down
5. Interest rates cuts and cost of living pressures ease…but when?
6. The capital city scorecard – where to invest and why