Here are 3 reasons why your house would be valuable to your children’s future
Buying a house is more than just a brick and mortar investment. It is something every family wants to own and grow to love, and as parents, something to pass on to your children as a sign of your affections. Your children will appreciate it, and here are some reasons why:
A place of memories
Memories are things that can never be recreated or replaced. That first time your child said ‘I love you’. The first time your children bought you a cake. That first time your child fell down. Everything is a memory and every memory made in the family home is precious, not only to you, but to your children as well. So, if you cherish your memories, pass on your memories together with the house for your children to cherish and make even more memories with their own family.
A place to raise a family
The future is never certain. However, you can help your child have a little more security by passing your house down to them. In the event that they are unable to afford to buy a home in the future, they can still raise a loving family in a secure place called home. With the burden of buying a house out of the way, your children can focus on raising their kids with a better lifestyle and education.
As an emergency safety net
A home, a house, is still at the end of the day – an asset. Any asset given to your children will definitely be a boon in the future. It can serve as a security net; whether to provide a roof over their heads or as something that can be used as bank collateral to secure a loan.
If you are planning to give your house to your children, there are a few things you should keep in mind.
1. Making a will
You would need to ensure that there is a place for you to stay even after gifting the home to your children – unless you’re only intending to gift it after you have passed on. Whether you plan to pass your home before or after your death, the best course of action would be to make a will. This will ensure that in the event something unfortunate happens to you, your home will fall into the hands of your children and no one else.
2. All or half?
You don’t need to give the entire property to your child if you feel that may spoil your child too much. You have the option of passing on the house for your children to continue paying the mortgage, or should you have another place to stay (or if you are confident about having a place to stay even after handing the deed to your children), you can sell the house to your child at a lower price. This will still ease their burden, and should your children think they are not able to manage the mortgage, there is still time to discuss things with them to decide the best course of action.