Published
Update
Video length: 3 mins.
Article written by
Potential home buyers are finding it increasingly difficult to finance their purchase. Credit rates have continued to climb, and inflation is cutting into their purchasing power. So some turn to their parents, their family.
Calling on your parents to buy your first home, some buyers are now forced to do so. But what does the law allow, and are there any risks in this family support? An architect has signed a sale agreement for a 50m2 apartment in Paris, at 350,000 euros. He has an appointment with his broker, but he is not yet calm. With rising interest rates, its record is fragile. He will have to ask his father for 40,000 euros, in the form of a donation.
Tax-advantaged donations
Asking for money from retired parents, not easy to do, at 31 when you are an employee. In recent months, the broker systematically encourages its customers to turn to their parents. “We have one in two customers on average who needs a donation. Because of the increase in rates, they had an additional contribution to be able to keep exactly the same budget that we had set ourselves a few months ago”indicates Baptiste Aboad, broker.
Attractive donations, because they benefit from advantageous taxation. Each parent can give up to 131,865 euros per child, without paying rights, and this every 15 years. Family loans that must be declared to taxes, when they exceed 5,000 euros.
View comments