Family Backed Property Buying 

Strategies families often use to help other cash strapped members buy their homes include:

Loan Guarantors

Under this option, a family member guarantees the total loan and, if necessary, assists with repayments. 

Second Mortgage  

Here a relative takes out a second mortgage on another property and puts these funds towards the cost of purchasing the new one. 

Security Support

In this instance, a family member offers his or her own property as security and acts as guarantor for the new loan in full.  

Gift of Loan proceeds

Alternatively, family members mortgage their own property and use these funds to reduce the amount needed to be borrowed.

Security and Servicing Support

To cover expenses such as stamp duty and legal costs or help meet monthly loan repayments, family members may mortgage their property and act as guarantors. 

Compensation methods which are often used, include:

A capital gains split based on an agreed percentage between the buying and selling price of a property.   Alternatively, a one-off amount is paid at some predetermined date or periodic payments commence at a given point in time.  Payment of either interest only or principal and interest are other preferred options.

To find out the best options for family backed finance to suit your situation, call Naritas today on 1300 55 88 87.