Please consider your personal circumstances before making any decision regarding your finances. LJ Hooker Financial Services Pty Ltd ABN 34 106 564 765 Australian Credit Licence Number 380270 Breaking into the property market is tough. Lenders require at least 5% deposit and then you have other big costs like stamp duty and lender’s mortgage insurance. This means most first time buyers need to save tens of thousands of dollars before they can enter the market. When it comes down to getting help from the parents, it’s wise to think of it as a business proposition and tackle it that way accordingly. The initial discussion Most parents are willing to help their children into the property market, so long as they believe they are financially responsible and ready to take on the commitment. Show that you are by getting your financials in order, sorting out any credit card or personal loan debt, and if you can, show a history of savings responsibility. Set up your initial discussion in a professional manner, and to make your presentation foolproof, follow the tips below: • Have everything in order and show you’ve thought carefully about the idea. It’s important to demonstrate past financial responsibility • Put your proposal on paper • Don’t try to hide or duck concerns. Explain why you’ll manage their investment carefully • Focus on the investment aspects of property and how their help could help you build your wealth and future • Give them time to look over and consider your proposal. It may take a couple of conversations for all the details to be worked over • If you’re seeking help with the deposit, emphasise that you need their help now rather than later, and that you have a plan to repay their support if needed • Lastly – be good! Be honest as to whether you would invest in yourself. If the answer is yes, then probably your parents will too! The rise of the bank of mum and dad . First time buyers are increasingly turning to their parents to help them crack the property market. But what’s the secret to popping the question, and more importantly, how do you do it with respect? Lenders require at least 5% deposit plus stamp duty & mortgage insurance.

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Page 1: The rise of the bank of mum and dad Flyer - A4

Please consider your personal circumstances before making any decision regarding your finances.LJ Hooker Financial Services Pty Ltd ABN 34 106 564 765 Australian Credit Licence Number 380270

Breaking into the property market is tough. Lenders require at least 5% deposit and then you have other big costs like stamp duty and lender’s mortgage insurance. This means most first time buyers need to save tens of thousands of dollars before they can enter the market.

When it comes down to getting help from the parents, it’s wise to think of it as a business proposition and tackle it that way accordingly.

The initial discussion

Most parents are willing to help their children into the property market, so long as they believe they are financially responsible and ready to take on the commitment. Show that you are by getting your financials in order, sorting out any credit card or personal loan debt, and if you can, show a history of savings responsibility.

Set up your initial discussion in a professional manner, and to make your presentation foolproof, follow the tips below:

• Have everything in order and show you’ve thought carefully about the idea. It’s important to demonstrate past financial responsibility

• Put your proposal on paper

• Don’t try to hide or duck concerns. Explain why you’ll manage their investment carefully

• Focus on the investment aspects of property and how their help could help you build your wealth and future

• Give them time to look over and consider your proposal. It may take a couple of conversations for all the details to be worked over

• If you’re seeking help with the deposit, emphasise that you need their help now rather than later, and that you have a plan to repay their support if needed

• Lastly – be good! Be honest as to whether you would invest in yourself. If the answer is yes, then probably your parents will too!

The rise of the bank of mum and dad.First time buyers are increasingly turning to their parents to help them crack the property market. But what’s the secret to popping the question, and more importantly, how do you do it with respect?

Lenders require at least 5% deposit plus stamp duty & mortgage insurance.