The festive season is upon us!
A time of year that means many things to many people; the corporate party season, time to switch off work after a big year, or cherished time together with friends and family.
For my family it is a rare chance for everyone to get together to catch up and enjoy a bit of time together on Christmas Day. I remember as a kid I always looked forward to this time of year, probably because it was associated with everyone giving me presents, but as the years have gone on and I’ve had kids of my own I realise that it wasn’t really about the presents even back then, but rather the fact that everyone would be there spending quality time together.
I hope that everyone can take the opportunity to genuinely switch off and make sure they spend at least a little bit of time with their families over this holiday season – be that Christmas day lunch, dinner on Christmas Eve or a Boxing Day BBQ – whatever suits!
For those struggling for inspiration on the gifting front, what many people don’t realise when it comes to home loans is that as a parent you are able to actually give the gift of a parental / family guarantee for your children to help them buy their first property (as either owner occupier or investor).
Many of the banks offer this option; and as long as you as a parent have equity in your home it means this can be used as security for the purchase. What this means is that your child can maximize the amount they can borrow and does not need as big a deposit, LMI costs are avoided, and you do not need to contribute cash to the transaction as the guarantor.
Take an example; your daughter wants to buy a $500k property but only has a $25k deposit (95% LVR), this would usually cost $16k in LMI (with Westpac). If you as parents provide a guarantee on the equity in your home of $75k then this takes the LVR to 80% and LMI is not required.
If you’re in a position where you know you could help your children with their first purchase, or you are looking to get into the market and know your parents could help you then feel free to give us a call to discuss your specific situation – you could be into your first property faster than you think!
The second part of the festive season that I really enjoy is New Years; not just for the opportunity to spend the evening with close friends celebrating the year that has been, but to focus on the year ahead.
I’m a huge advocate for being planned, and believe that in this world that success is an outcome of carefully laid plans. We’ve always got our long term objectives at the forefront of what we do, and we take the opportunity at the end of year to structure up specifically what actions and milestones we want to achieve in the year ahead. Makes the end of year celebration all the sweeter to reflect on these achievements!
So what are your new years resolutions?
If you want to talk about how we can help you with your 2018 plans (and beyond) don’t hesitate to get in contact.
Enjoy the break!