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  1. #11
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    No way. I agree with the buying a unit/flat for them to rent cheaply so that their work doesn't take away from their study time. Parents could perhaps pay some towards their HECS bills or the like to soften the blow once they graduate, but not just to give them money with no strings attached?

    Will they have total control over the money, or will there be some sort of caveat placed by the parents?

    I think it's a bit too young and that they should have a go themselves, if they save a deposit for a house and need a bit of help then then by all means.

    If the parents want to live in a caravan then go for it, but invest their hard-earned money a bit more securely.

  2. #12
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    Default Selling your home to give the majority of your money to your children?

    Its a fine line between giving your kids enough so they can do something and giving them too much and have them do nothing

  3. #13
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    Default Selling your home to give the majority of your money to your children?

    If they really want to help, a better idea would be to help with a house deposit, but make sure the kids are fully responsible for the loan repayments.

    That way they still get have their own places but will feel more of a sense of pride and ownership if they are paying it off themselves.

    I would never live in a caravan just so I could put my kids in houses. But if I can I'll certainly help with a house deposit.

  4. #14
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    no way, and if my parents had suggested they do such a thing I would have refused to let them/take the money.

    They don't know what could happen to them health wise, they might not be mobile enough to handle a caravan/mobile home in the next 20 years!

    If they want to help their kids, sure...help them with rent or if they can afford an investment property, let the kids rent it and get a couple of room mates to rent with them so they can at least offset some of the repayments.

    I hope you can talk some sense into your sister...I absolutely will help my kids until they finish uni, but there is no way I would sell our house and be mostly broke to do it. Teaching your kids that you can just take that kind of "gift" is not a good message at all. If the family was loaded and they could buy them flats without giving up their home, i would see it as less of an issue.

  5. #15
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    I think that's a terrible idea!

  6. #16
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    I think they should seek some serious financial counseling. If they give their children money (not an inheritence) there are serious tax ramifications for their children. How are students meant to pay rates/etc and upkeep on a house with no income? They might also need to pay tax on any money they are given. There are also tax ramifications for the parents of giving the money away - they need advice on this.

    If they are wanting to buy investment properties to put their children in for a few years, then they will rent them out afterwards or if the kids want they can buy them then, then that is a good idea (assuming they are studying in appropriate places, which I suppose is a big assumption). That gives them an 'out' if they don't like living in a caravan. Seeing as though they are still of working age I assume they are 50 or maybe younger ... that's potentially 50+ years of living in a caravan ... not my ideal ... and then they will be draining on the finances of their kids to pay for their health costs, hostel/nursing home/etc.

    Overall, sounds silly. Well intentioned, but silly.

  7. #17
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    Default Selling your home to give the majority of your money to your children?

    Whaat??? Did your sister also give money to a strange Nigerian man that said he needed her help?

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  9. #18
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    I undersatnd where they are coming from though. My parents always saw university as an extension of high school in that they (a) wanted us to all attend & (b) were prepared to support us (eg living at home rent free) for the first few years so we could study without having to work. They moved away when I finished high school and bought an investment property which I lived in "rent free" for 2 years then I started paying rent.

    I don't believe providing for your children while they are at uni is a bad thing nor does it set them up with bad habits - but I do think what the people in the OP are doing is very misguided and may well wind up having negative outcomes as mim1 has pointed out.

    Also no one knows how long they will live - it's a heck of a long time to be living in a caravan which they might wind up hating. If I was their child I might not fully understand at 19 but when I got older I might wind up feeling really guilty my parents did that for me.

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  11. #19
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    Not a great idea. Depending on the kids, they could squander it entirely and then the whole family is left with nothing.

    With kids aged 19 and 22 I assume these people are about 50. They still have a lot of life ahead of them, and potentially a lot of health challenges which may not be compatible with life in a caravan.

    I think being there to give them a home to return to as needed, and also modelling good financial choices is a better idea than selling up and handing the money over to 2 very young adults.

    And if they receive a pension or intend to claim a pension within 10 years (if memory serves) they will be assessed as still having that house under gifting rules.

  12. #20
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    Default Selling your home to give the majority of your money to your children?

    Their intentions are lovely, but doesn't sound as though they have thought it through properly - for themselves or the children.


 

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