Advice for a teenager

[Opul]

I have had a friends daughter asking me for advice and I don't have enough knowledge to help her, so I thought I would ask the members here.
This girl is 15, has a small part time job after school and has saved a significant amount for someone her age. She is a motivated and focused student academically and is very interested in investing in property. She really wants to know how realistic it is to pursue purchasing an investment property for someone her age, what are the barriers she will encounter and how does she overcome them. She has spoken with her grandparents especially about her thoughts, and they have indicated they might be willing to act as guarantors for her. She has read widely on the subject but there isn't a lot of info relating to someone her age. Any advice would be appreciated.

[k1w1]

I still don't think the banks will look at her, given her age. Might depend a little on the age of the grandparents and the level of assets they have, too.

If they are minted, might be easier to get them to lend her the money directly. If they aren't, all the more reason to think the bank won't go for it.

I had a hard enough time getting a mortgage at 19.

Having said that, starting out at a young age worked for me, so I wish her all the best.

[mortgage broker]

Couldn't someone be trustees for a trust with her as the main beneficiary?

[princess]

I would recommend grandparents loan or "gift" her the cash to help with a deposit rather than go guarantor - if her first investment ISN'T successful, or if she changes her mind as 15 yr olds are prone to doing, they could lose their retirement security.

I also think the rules about 15 yr olds, limiting what they can do with property, are ther for a reason... maybe a joint venture with someone else in the family could be a good direction, they can mentor her at the same time, taker her to see mortgage brokers, bankers, insurers etc so she understands what is involved.

[exnzpat]

I have had a friends daughter asking me for advice and I don't have enough knowledge to help her, so I thought I would ask the members here.
This girl is 15, has a small part time job after school and has saved a significant amount for someone her age. She is a motivated and focused student academically and is very interested in investing in property. She really wants to know how realistic it is to pursue purchasing an investment property for someone her age, what are the barriers she will encounter and how does she overcome them. She has spoken with her grandparents especially about her thoughts, and they have indicated they might be willing to act as guarantors for her. She has read widely on the subject but there isn't a lot of info relating to someone her age. Any advice would be appreciated.

STAY IN SCHOOL.

DON'T TAKE DRUGS.

DON'T GET PREGNANT (unless you’re married).

[Opul]

STAY IN SCHOOL.

DON'T TAKE DRUGS.

DON'T GET PREGNANT (unless you’re married).

She is a straight A+ student, aiming for University and beyond, and is too busy with sport at a National level to be tempted by any boys or drugs.

[Monkeyboy]

Can't get a mortgage until they are at least 18. Can't be a party to the transaction either. Would have to let the parents, grandparents purchase the property in the name of a trust and as MB stated she can be a beneficiary of the trust. Rules could be put into the trust to allow her to take ownership once she turns 18 and can get on the title or a loan.

[exnzpat]

She is a straight A+ student, aiming for University and beyond, and is too busy with sport at a National level to be tempted by any boys or drugs.

Then let her be a child!

[Re@der]

Yes I have a daughter who was also driven in a similar way and simply couldn't wait.
I think that one way to delay her in a profitable for her way would be to start getting educated on the subject. In Auckland there is a young persons division of PIF

[k1w1]

In Auckland there is a young persons division of PIF

Boy, there's something you'd want to keep quiet in case your mates found out. Worse than the Chess Club and Mathmatics Camp.

[Re@der]

I think in the upcoming generation that becoming wealthy has its own sort of cool.

[k1w1]

Ha! Don't count on that. At least not in NZ, reader.

[Opul]

I know the banks won't lend to a 15 year old but is there an age limit for setting up a trust or LAQC? Would a LAQC be better in the long term for her?

[mortgage broker]

Setup a trust with her as the main beneficiary.

[tpr2]

where are mum and dad in this situation?