You know that you can lend money to your child to help him or her buy Santa Cruz real estate. But you’d like to explore some other financial arrangements to determine which option is the most advantageous for you and your child.
Here are four additional ways to help your child buy Santa Cruz real estate:
1. Give the down payment as a gift.
Before deciding whether to make the money a gift or a loan, consider what moral message you may be sending. You don’t want your child to develop a sense of entitlement and take for granted that he or she can come to you any time money is needed.
If you decide you do want to give part or all of the down payment as a gift, consult with your financial adviser to determine the amount you can give away without