At Wells Gibson, we understand that as parents, you want the best for your children. That often includes seeing them achieve the milestone of owning their own home. In today’s market, getting onto the property ladder can feel like an insurmountable challenge. That’s why we’re here to offer some practical advice and financial planning tips to help your kids achieve their property dreams.
The Challenges Facing Young Buyers in Scotland:
- Rising Property Prices: Like many areas in the UK, Scotland has seen property prices increase, making it harder for first-time buyers to save a deposit.
- Deposit Requirements: Lenders often require substantial deposits, which can be difficult for young people to accumulate.
- Affordability: Balancing mortgage repayments with other living costs can be a struggle for those starting their careers.
- Understanding the Process: Navigating the complexities of mortgages, solicitors, and surveys can be daunting for first-time buyers.
How Parents Can Help:
- Early Financial Education:
- Start talking to your children about money management from a young age.
- Encourage them to save a portion of their income, even small amounts.
- Discuss the importance of budgeting and responsible spending.
- Help with a Deposit:
- Consider gifting or lending a deposit.
- Explore options like a “gifted deposit” where you provide a non-repayable sum.
- Look into “joint mortgages” or “guarantor mortgages” where you provide added security for the lender. (Seek professional advice before making this decision).
- Utilise Government Schemes:
- First Home Fund (Scotland): While subject to changes, it is important to stay upto date on what help the Scottish government offers. This helps first time buyers with a deposit.
- Lifetime ISA (LISA): Encourage your children to open a LISA, which offers a government bonus towards their first home or retirement.
- It is important to keep up to date with all government schemes, as they change frequently.
- Financial Planning and Guidance:
- Encourage your children to seek independent financial advice.
- Help them create a realistic budget and savings plan.
- Introduce them to mortgage advisors who can explain the different mortgage options.
- Practical Support:
- Help them research potential properties and understand the local market.
- Assist with the paperwork and legal processes involved in buying a home.
- Help them understand the costs associated with buying a house, such as solicitors fees, surveys, and moving costs.
Wells Gibson: Your Partner in Financial Planning:
At Wells Gibson, we understand the importance of securing your family’s financial future. If you’d like to discuss how we can help your family with financial planning and property goals, please don’t hesitate to contact us.
