As house prices have risen over the last decade, owning a home has become more challenging for first time buyers, and one option to help the younger generation to get property, is for parents to co-own a house with their kids.

If you’re considering this route, here’s a few important aspects to consider…

If you are Buying together as an investment as a way to secure a mortgage for the kids, a capital gains tax will be triggered when the home is eventually sold. However, you can structure ownership so that their interest is nominal, and work with a lawyer to place that interest in a trust for the benefit of the kids.

It is a good idea to enter into co-ownership with a solid agreement in writing about who will be responsible for what payments, and what happens in the event of unforeseen circumstances.

And keep in mind that joint ownership exposes any house to claims from personal or business creditors or spouse in the event of a divorce.

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