How family gifted deposits are a major factor for today’s First Time Buyers’.
Recent figures show that 36% of first time buyers in 2022-23 were ‘gifted deposits’ from family members.
Go back a few more years and a whopping 54% from 2015-2020 were, guess what, gifted deposits by parents and grandparents.
‘Baby Boomers’ were born between 1945-1964, and are the wealthiest generation by far. So if your parents are now aged 60-79, you could be in the lucky percentage above.
As the name suggests, a gifted house deposit, is a gift.
This means the person giving the money doesn’t expect any form of repayment. This type of money transfer can be open to taxes, so obtaining advice from a financial advisor is always necessary when making such decisions. This can also be arranged at Clarity Wealth Management.
Specialist insurance policies can then be put in place to offset potential tax liabilities.
Giving away money, or ‘Gifting’, is also a very common way to reduce inheritance taxes. Parents and grand-parents are often much more open to the idea than you may think, and what better way can there be to reduce taxes, than by seeing a child or grandchild move into their 1st home!
