The team at MWM is seeing some huge gifts of cash from parents to assist their kids to get on the property ladder, which we think is a great thing and well over due.
We don’t want our money from our parents when they are 85 as we will likely be 60 and may not require to much cash at that age, also then we have spent 20 years paying interest on our mortgage, which is just a waste on money. so, giving money to your kids early on is the best option as it helps everyone to get ahead
A gift of cash to your kids doesn’t have to huge $ 20,000 – $ 50,000 is quite normal, more is great tho.
How Gifts Work
- All gifts are not taxed, so no tax to pay
- You will need the cash ready to send to the lawyer just before settlement date (not unconditional)
- You could top up your mortgage and use that as a gift.
- A gift letter signed is all you need for the bank; no proof is required (this will change soon as the fun police will make a new law)
- You can use the Gift to pay the deposit
So if a buyer is short of the purchase price ask if they can get a gift from Mum and dad or their grand parents .
Or even better Call the Team at MWM
Yes they are still low and will stay that way for along time so fixing for 1 or 2 years is best