If your adult children are not making the move to launch out of the nest it can be tempting to give them a little push, in terms of buying them a property. Here are some options that can help your adult children to make the move into independent home ownership.
Buy them a property outright
One option is to buy them a property outright and gift it to them early on. This can be a good idea if you have a lot of spare money and want to make an early gift so that you can see your children enjoy it early on, before you pass it on. Obviously there can be tax and/or estate planning implication especially if you have more than one child, so it can be a good idea to discuss this with a lawyer before you make any decisions.
Buy a property with them
Another more flexible option can be to work with your child to help buy them a property. This could include buying a property with them in some proportion, or simply guaranteeing the mortgage. This can be a great option if your child can´t quite afford the property that they want, but is finding it hard to save the deposit that they need in a market that is still growing. It also means that your child can extend their budget and may be able to buy a larger property or a property in a better area so that they don´t have to sell or move in the next few years to upgrade, which can save everyone money. Again it can be worth seeking tax advise before you do this.
Buy a property that they can rent
If you want your kids out but can´t or worn't buy them a property a final option is to buy a property that they can rent. It's important to know that any discount that you offer on market rent become a benefit to you and is not tax deductible so you cannot buy a property and offer it at a 'peppercorn' rent to get them moving out without bearing some cost. If you are taking on the entire cost of renting you may have more control over buying a type of property that you feeling may grant more long term property growth, but you still need to ensure it´s somewhere your child will want to live. It can be useful to seek some advise from a real estate agent to find a property that meets both of your needs.
If you are looking to buy a property to get your children to move out of your home it is a good idea to get professional advice.