Worried That Your Kids Will Never Afford To Buy a Home, Here Is What You Can Do For Them Now

Date: 2009-07-02 16:51:24

By John E Edwards

Have you every wondered how you can help your children become involved in property ownership. Without putting up the cash or pushing them into a huge mortgage. The answer is simple and here so read on.

You will need a mortgage broker to assist you with the calculations and formulas and the selection of an appropriate mortgage.

Here it is! The key is in your own mortgage. What is the process?

There are two senarios.

1)One you have a small mortgage and you can comfortable increase the mortgage to cover the cost of the depoisit for the purchase of the rentals.

2) You cannot increase the mortgage in which case you split your mortgage into two one split being the size of the deposit to purchase a rental.

In this case we will assume no 1 senario. The only difference in senario two is that there is an extra 12 to 18 months before the first rental is purchased.

Step one:

Do some calculations, you will need to find out

1) A rental property purchase price
2) Expenses in buying property
3) Rental target
4) Property must be positively geared
5) 20% of the rental is surplus after interest and expenses
6) The deposit required to purchase the property and achieve above

Step two:

Increase you mortgage by the amount of the the deposit

Step three:

Split your own mortgage into two parts

1) Your original mortgage P


Author

John E Edwards explains how a mortgage is a wealth creation tool, and how to use the mortgage effectively to start creating wealth in your life now. Contact a specialist to get you on the right path now.
Mortgage Solutions or Mortgage Answers. This articles came from MoreArticles.net.


Terms and Conditions

By using any article on this site you agree to not change, modify, or add to the article in any shape or form. You agree to not modify any clickable and active links. You agree to include the author bio unchanged and unmodified. You agree to link back to this site MoreArticles.net. If you accept and follow all of these terms and conditions then you are allowed to freely use these articles.