There are ways to get children onto the property ladder
Article by Mozo
Australia has some of the highest house prices in the world and it is increasingly difficult for youngsters to get on to the property ladder.
Despite the fact that Australian Bureau of Statistics figures highlighted a 2.3 per cent month-on-month rise in the uptake of home loans in December 2011, many people who lack financial clout are still being left frustrated when attempting to secure their first house.
However, a growing number of parents are giving their children a helping hand by purchasing property in their name ready for them to move into when they grow up.
Although there are a number of pitfalls to avoid when doing this, partner at law firm Wisewould Mahony Julie Barkla told News Limited that it is doable.
She stated that while a contract of repayment will not be legally binding on a minor, mortgages can be taken out in a youngster's name if they are a member of a building society or co-operative.
Another option, Ms Barkla added, is to set up a personal loan between yourself and your child.
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