Should You Use a Family Gift to Buy a Property?
So, while on holiday with the fam, your parents casually drop, 'We’ve got some spare cash'—time to chat about turning that into your first home deposit?
Should You Use a Family Gift to Buy a Property? Here's the scoop on why, or why not, to consider their offer of a cash gift...
Yes:
Boost Your Deposit: A gift from family can give you the leg up you need to increase your deposit, potentially saving you from additional lender fees and/or requirements, as well as potentially securing a better interest rate.
Faster Purchase: It can help you get into the market sooner rather than waiting years to save the full amount yourself.
Reduce Borrowing Costs: The more you put down upfront, the less you need to borrow, meaning lower repayments and interest over the life of your loan.
No:
Emotional Strings: Family gifts can come with expectations. Make sure everyone is clear about whether the money is a gift or a loan.
Financial Pressure: Depending on the gift, you might feel pressure to make decisions that align more with family opinions than your personal goals.
Bottom Line: A family gift can be a fantastic way to get ahead in the property game, but it’s important to have clear communication and make sure it fits with your long-term financial plans.
Not sure what’s best for you? Let’s chat! I can help you weigh the pros and cons to see if using a family gift is the right move for your home-buying journey.
Jenna x
Psst Let's be real, who could say no to a gift that keeps on giving... like a house key? 😉