Are your children having trouble purchasing a first home?

A 2004 national wide survey confirmed that the big dream for 40% of Australian parents is to ensure their children are happy and financially secure. The favoured way to do this is to assist their children with purchasing a home of their own.

An increasing number of lenders are offering loan options for parents to assist their children to buy their first home. There are only two pre-requisites. The first is that you will need to have reasonable equity in your family home to pledge as collateral security. The second is that you may need to have a moderate income.

Once your son or daughter finds a home they would like to purchase, he or she applies for a home loan and still receives the First Home Owners Grant of $7,000 to cover purchase costs.

As a parent, you can provide a guarantee for either income support, security support or both income and security support. If your child has "genuine" savings of 5% then the guarantee can be limited to 20% of the loan amount. If the child does not have their own savings they can 'tap into" your home equity.

After approximately one year or as soon as there is 10% equity in the home your son or daughter may be able to take over the loan in his or her own name, releasing you and your home from the guarantee. This is dependent upon their ability to afford the repayments on their own.

Peter Roderick is a mortgage specialist and Director of Refund Home Loans Beechmont. For more information, articles, news, tools and valuable resources on home or investment loan, refinancing, debt solutions, visit this site: http://www.refundhomeloans.com.au or email peterroderick@refundhomeloans.com.au to register for our free monthly newsletter

How to Make Credit Card Debt Settlement Yourself - by Grace James
You may want to make credit card debt settlement yourself because you either do not trust the hundreds of credit card debt settlement agencies you see around or you cannot afford to pay the high fees they charge. What

How Day Trading Works - by Micheal James
Day trading can be defined as a trading methodology where investors are involved in buying and selling of stocks during the same day. This means that you are not holding the shares overnight, which you have brought, and you

Making Money with Forex Online Signals - by Matus Majersky
Forex trading is actually a lucrative business. Of course, you can only be successful if you know the ins and outs as well as the risks and benefits of trading in the Forex market. Investing in the foreign exchange

The IRC Section 1031 Tax Deferred Exchange - by Kimberly Tomlin Ladd
The tax deferred exchange provides property owners with one of the last true tax breaks and the only voluntary method for deferring capital gains tax on the sale of investment and business property. Unfortunately, many property owners don't capitalize on the benefits of IRC Section 1031.

Just Sold Your Investment Property? Are You Prepared to Pay the Recapture Tax? - by James Kobzeff
Before you purchased your rental property investment, you were probably already well aware of the capital gains tax, and the fact that you might be required to pay it to the Feds in the year when you outright sold the property (without involving a Section 1031 tax deferred exchange). Discover what depreciation recapture tax is and why you should prepare to pay it before you sell your investment property.