A bestselling finance author is urging parents to be wary of acting as a guarantor for their adult children when they buy a home

A bestselling finance author is urging parents to be wary of acting as a guarantor for their adult children when they buy a home.

Scott Pape, better known as the Barefoot Investor, said family relations would be strained if a parent was held financially responsible for a loan their son or daughter couldn’t pay off.

‘It can cause a rift in the family,’ he said in a News Corp ‘I know you think that’ll never happen, but what if your princess’s prince turns into a frog and leaps off with half your deposit? Ribbit!’

A bestselling finance author is urging parents to be wary of acting as a guarantor for their adult children when they buy a home. Scott Pape, better known as the Barefoot Investor, said family relations would be strained if a parent was held financially responsible for a loan their son or daughter couldn't pay

A bestselling finance author is urging parents to be wary of acting as a guarantor for their adult children when they buy a home. Scott Pape, better known as the Barefoot Investor, said family relations would be strained if a parent was held financially responsible for a loan their son or daughter couldn't pay

A bestselling finance author is urging parents to be wary of acting as a guarantor for their adult children when they buy a home. Scott Pape, better known as the Barefoot Investor, said family relations would be strained if a parent was held financially responsible for a loan their son or daughter couldn’t pay

Pape said parents struggling to pay off their own debt were in no position to be legally responsible for their offspring.

‘If you’re struggling or still have outstanding debt yourself, you’d be mad to go guarantor for anyone,’ he said.

‘As they say in the airline safety demonstration, always fit your own oxygen mask first.’ 

Even when parents aren’t going guarantor, they are often stumping up to help their children fund a 20 per cent mortgage deposit.

Parents are giving an average of $89,000 to their children so they can buy property, with Digital Finance Analytics calculating the bank of mum and dad is worth $34billion a year.

Sydney public relations account manager Keiran Mannion, 25, saved an impressive $88,000 for Pornhub sex a mortgage deposit but it wasn’t nearly enough, as record-low interest rates cause home values to surge.

Sydney public relations account manager Keiran Mannion, 25, saved an impressive $88,000 for a mortgage deposit with it wasn't nearly enough, as record-low interest rates cause home values to surge. So she her parents gave her $75,000

Sydney public relations account manager Keiran Mannion, 25, saved an impressive $88,000 for a mortgage deposit with it wasn't nearly enough, as record-low interest rates cause home values to surge. So she her parents gave her $75,000

Sydney public relations account manager Keiran Mannion, 25, saved an impressive $88,000 for a mortgage deposit with it wasn’t nearly enough, as record-low interest rates cause home values to surge.

So she her parents gave her $75,000

<div class="art-ins mol-factbox floatRHS news" data-version="2" id="mol-554dccb0-e828-11eb-80f9-fd4305c0ac5e" website Investor reveals the one trap parents can fall into for kids

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