Q&A

A selection of property questions answered

Our children want us to fund deposits for their homes

We are wondering about giving our children deposits to help them on the property ladder. Our main question is whether we would get a mortgage. Our two children (28 and 25) have approached us about deposits (our third child lives in London). Several of their friends have been helped in this way. Our mortgage is less than €20,000 and going by what other houses have sold for, our house is worth around €480,000. My husband is eight years away from retirement and our income - I have a part-time job - is around €60,000.

Without knowing too much about your financial situation it would seem that you would get a mortgage - you are both earning and your house is a major asset. But, and you mightn't want to hear this, why should you? This column sides with Eddie Hobbs on the matter of parents putting themselves into debt to provide a deposit for "children". In his book Loot! (Penguin) Hobbs advises parents that "before deciding to pass assets prematurely to an adult child, consider whether your generosity comes with an enormous price tag, namely your financial dependence on your children later in their lives." He also says "out the door by 24" that's how hardline he is about this! In other words, are you adequately prepared for retirement in terms of your pension? Might you, for example, want to use your home upon retirement to trade down and release funds to make your retirement more comfortable or, later, to provide for nursing home care? Your husband might have a good pension but you, as a woman with a part-time job, almost certainly don't. Do you really want to saddle yourself with an additional €100,000 debt? That's roughly the amount you'll need to divide among your three kids. Have your kids looked into pooling their resources and buying an apartment together? There's a good chance that their finances might just stretch to that, especially if they are saving hard and have forgone a few luxuries for the past couple of years. Have they looked into affordable housing schemes? If it came to it could you go guarantor for them on a mortgage? Instead of them relying on what their friends do and say, get them to consult a mortgage broker about their options.

I am worried that estate agent will cancel the deal

Two weeks ago I put down a €10,000 booking deposit on a new apartment. The deal was that I will sign contracts in three weeks' time. But I am having problems securing a mortgage, I have to get some additional documentation which I know will take at least another week, maybe two. How should I handle this with the estate agent? Is the three-week time frame set in stone? I'm nervous of approaching the agent in case a whiff of delay makes them cancel.

It's standard practice in a new development to sign contracts three weeks after initial booking deposit but, as many buyers will tell you, sometimes contracts don't even become available until weeks after that three-week deadline has passed.Yet it also does happen that contracts are available three weeks to the day. Your best bet is to contact the agent, stress that you do want to go ahead with the sale and explain the reason for the delay. If it is only a matter of two extra weeks the agent is likely to accept your assurances.

Send your queries to Property Questions, The Irish Times, 10-16 D'Olier Street, Dublin 2 or email propertyquestions@irish-times.ie.

Unfortunately, it is not possible to respond to all questions. The above is a representative sample of queries received. This column is a readers' service and is not intended to replace professional advice. No individual correspondence will be entered into.