A Little More About Parental Guarantees

The parental guarantee strategy seem like a risky business when it comes to setting it up.

But you can take the risk out of the equation.

If you follow our First Home Financial Freedom Framework, you’re going to buy a property that goes up in value. You’re going to buy in a growth location, and you might use a few value-adds, such as renovation, to increase the value.

As soon as your property goes up in value enough to cover what your parents paid out, you can get them off the mortgage. and release their property from securing your loan.

That means their property no longer acts as the security on your loan. So they’re no longer at risk if something goes wrong.

In our example, this means you need to raise the property’s value.

That’s where these components come into the equation.

Of course, you still have to service the entire debt over the course of your ownership. But the key is that a parental guarantee isn’t forever.

It’s simply leverage you can use to buy your first property faster.

And with our help, you’ll be out of that property again in two years because you’ve turned it into an investment property.Make a time to discuss your options with our dedicated team today, just book a time here for your complimentary call https://investorschoice.com.au/bookacall