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Many more parents are now considering taking out a buy to let mortgage so as to give their children a home during this downturn.

It's almost impossible for first-time buyers to get on the property ladder today – recent data from Moneysupermarket.com says first-timers need to have raised, on average, £32,000 to be able to secure a home. So parents are doing all they can to help their kids find a property, however they can.

An option that is growing in popularity is for parents to take out a buy to let mortgage on a property and then allow their children to become tenants. This allows their kids to have a cheap home and space to save, but it also allows the parents to invest their money sensibly.

Also, once the children are able to stand on their own two feet, the property can be let to other renters for a healthy profit. While pensions and funds remain in the doldrums, buy to let continues to make millions of landlords in the UK healthy profits.

Because property still is a viable option for investment. Although it will not promise instant rewards and massive incentives like it did in the past, it will yield profits over the long-term if it is planned carefully.

So if you think renting a property to your children could be a shrewd investment, talk to a mortgage broker right away. It might be that there are other things you can do to help your children, or it might just be the investment you have been looking for – one that will help your children and one that will make the most of your money.

SOURCE: Moneysupermarket.com, 17/07/09

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