The dangers of buying property for your children – and how to avoid them

The dangers of buying property for your children – and how to avoid them

Together with expert Jo Eccles, we offer guidance to ensure that the remarkable gift goes to plan.
Every year some of our clients are parents buying property for children (or grandchildren) and there are different factors to consider depending on how old - or young - the child is, how much responsibility you want to transfer and how legally to structure it. We've represented parents buying for children as young as 4, created portfolios for children and grandchildren that we let and manage until they're passed on into adulthood, and see parents typically allocate budgets from £1m to £10m .

Transform your family's future through strategic property investments

Gifting property to your child or grandchild is a sincere gesture that holds the promise of a secure future. However, this initiative requires careful planning. We at Sotheby's International Realty Bulgaria, as a leading international brand in the field of luxury real estate, give you four indispensable tips on how to do it in the most successful way.

Profit and Growth: The Pragmatic Approach to Investing for the Young

Predicting the future property preferences of younger people is a challenge. In such circumstances, it is appropriate to prioritize rental income and long-term capital growth potential. This sensible approach provides solid initial financial support for future owners when they reach adulthood.

Estates for grown children: a guide for parents

When buying a property for your grown children, a prominent balance is required. It is based on their needs, preferences and lifestyle, combined with your strategic guidelines. The active participation of the heirs in the selection of the property, the acquisition process and the legal aspects of ownership engages them, enhancing their sense of responsibility and control. This cooperation is not only conducive to the family bond, but also provides valuable experience for the future.

Capital Security: Control and Risk Management

Many parents worry about the risk of their child selling or refinancing the property without their consent, or meeting a partner who tries to take advantage of them financially. Legal restrictions on property rights can protect you from unforeseen complications.

Professional property management: a guarantee of a successful return on investment

Property ownership comes with a number of responsibilities, and clear communication about roles and responsibilities is vital. Regardless of whether your heir lives in the property or not, professional property management can ensure adequate maintenance of the investment. This forward-thinking approach can ensure high-quality tenants, easy rent collection and asset preservation. Although it may reduce net income, this technique instills peace of mind and security.

By buying a property for your children, you are making a wise investment in their future. Through careful planning, this act becomes a strategic move, ensuring financial security and prosperity for generations to come. Our team at Sotheby's International Realty is ready to meet your personal real estate investment needs and desires.