Family comes first. If your family has offered you money to purchase a property then keep reading to understand how to make sure it doesn’t cause huge problems in the future.

One of the biggest worries for first home buyers entering the market is finding a property that fits within their budget. It can be particularly difficult when purchasers want to stay near their family as the suburb they have been living in for decades has almost certainly skyrocketed in value.

Homebuyers find themselves priced out of the market and understandably stressed out. 

There are of course plenty of inner city options and new suburbs opening up on the outskirts of Melbourne, but for those who are lucky enough to have been offered some assistance from their family our concern is always ensuring that the help doesn’t cause tension between the family in the future. You might say ‘don’t be silly it will be fine’ but when money is involved tension inevitably follows. 


“She’ll be right” is not a solid foundation for loaning someone money. Tension and fighting is usually caused by miscommunication. One party doesn’t understand their role and their responsibilities in the property transaction.


Understanding the spending habits of the home buyer is essential for avoiding problems in the future. Remember that above all the ambition to own a home must be the home buyer themselves and not their parents.

If it’s the parents’ dream that their child own their own home but they want to go overseas for a year on holiday then there will be big problems.

Talk openly about the future with your children; they may have completely different ideas for their life. Of course there are always ways to make it work, including renting the house to help cover the mortgage before they are ready to settle down.


Whether you’re a guarantor, loaning money or using the family home as security, once the property has settled you have a vested financial interest in its’ success.

Working through a budget with your children sounds so simple, but it will give you clarity on whether they can comfortably met their repayments in the future.

For more information on family and property, have a read of our recent article “3 ways to help your children into their first home”.

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