Borrowing or lending money within the family may appear to be an easy, hassle-free, and cost-free alternative to high-interest lending banks and financial institutions.
Last year, 60 per cent of first-home buyers needed to borrow funds from their parents to get into the property market. But it is the undocumented nature of these arrangements where there are risks and dangers.
Sixty per cent of first-home buyers needed to borrow funds from family to access the property market.
Loans and gifts can trigger taxation and pension laws.
Documenting is crucial to risk management