What Is the Best Way to Help Children with the Purchase of Residential Property?
Many parents would like to know the best way for them to help their children purchase residential property. Gifts cannot be reversed. For this reason, an interest-free loan is often a better option.
The desire to help your children purchase residential property is understandable. However, with longer life expectancies and increasing healthcare costs, parents also need more capital after retirement. Gifts cannot be reversed later, but interest-free loans present an alternative. An interest-free loan can be reclaimed partially or in full at a later time, or gradually converted into gifts.
An Interest-Free Loan Offers More Flexibility.
Interest-free loans thus often represent a more flexible way to transfer assets from parents to children. The children can realize their desire for home ownership without their parents becoming financially dependent on them later.