More Australian parents are helping their children enter the property market. But the 'Bank of Mum and Dad' needs a proper strategy to protect everyone involved.
The main options are: gifting a deposit, acting as guarantor, co-purchasing, or buying an investment property for your child to live in. Each has different legal, tax, and relationship implications.
Guarantor arrangements are popular but carry real risk — if your child defaults, your own home could be at stake. Co-purchasing creates shared ownership that needs a clear exit strategy. Gifting is simplest but may have Centrelink implications. Whatever approach you choose, get independent legal advice for all parties, document everything in writing, and have honest conversations about expectations and responsibilities.