There's A Hole In Your Nest Egg, Dear Parent, Dear Parent

When we embark on homeownership, we do so because we want a safe base. We want to know that our families can rely on this constant. And, it feels pretty darn good to have a corner of the world to yourself. Forget steep rental costs or decoration limitations; how your house looks is solely down to you. That alone is a goal worth working towards.

But, at some stage, you stop thinking about the current potential of a house and consider the future it’ll hold. After all, the chances are that this is the most valuable possession you own. In fact, there’s a good chance it stands head and shoulders above anything else. As such, this is the primary nest egg you’ll pass to your kids in the future. And, that realization could make you see property in a whole new light.

For obvious reasons, parents want their homes to provide for their families. But, we all know that nests are fragile things. Without your even realizing it, it’s possible there are a few holes through which your property could fall. So, to make sure your investment pays off down the line, consider these issues and how to solve them.

You aren’t doing anything to boost the value

Most of us hope house value will increase down the line. After all, prices are forever rising, and the cost of your house now won’t be enough to sustain your kids in the future. The trouble is, many of us make the mistake of assuming this will happen on its own. And, in some cases, that does work out. House prices generally increase with time. But, what you might not realize is that neglect on your part could see you well out of pocket. Far from increasing house price, this could actually lead to a loss in value over the years. For the most part, keeping on top of maintenance issues as they arise can be a huge help here. You may also want to do things which actually boost your property value further. Aside from being fantastic for your prospects, these alterations are likely to benefit you now. Things like attic conversions and kitchen renovations are best for adding value. But, even something like a bathroom renovation could have an impact. So, if you’ve been putting tasks like these off, get your nest egg head on, and get around to them!


Interest on your mortgage is only getting worse

Sadly, as well as taking on your house, your kids take on your debts. As such, taking too long to pay off your mortgage could be bad news. Yet, this is a step many of us take. Accepting a longer-term mortgage with small monthly payments is the only way many of us can get on the housing ladder. The issue here is that, over the years, you stand to pay much more than you borrowed. As if that weren’t enough, you’re also then subject to increasing interest rates over the years. All of which your kids will have to deal with when they inherit your house. That’s far from ideal, and paying those debts could take a large chunk from their nest egg. To some extent, you’re tied here dependent on what you can afford right now. But, if you’ve moved into a second or third property, there’s a chance your financial situation isn’t as tight as when you started. It may be that moving somewhere smaller could free up money to increase your repayments. Admittedly, a small property is less of an investment. But, when you weigh this up, there’s a good chance it’ll still be worth more than a large house with high investment. If that isn’t an option, consider whether you could make allowances to afford a refinanced mortgage. You can use tools like this refinance calculator to determine whether this would work for you. On the surface, refinancing means higher monthly repayments. But, it also means clearing mortgage debt faster and improving interest rates. Thus, with nest egg potential in mind, it’s one of the best things you can do.

You haven’t thought about the future of your area


When it comes to buying properties, most of us consider the current state of an area, rather than where it’ll be in a few years. We move into areas with new town centers or initiatives on the go. All the better for making the most of our investment, right? Well, yes and no. There’s no denying that moving to upcoming areas is a fantastic way to see profit from property. The trouble is that when you take a broader view, you may not get such a good deal. After all, that initial spike will soon trickle away. You can bet that new town will look pretty dated by the time your kids take the helm. Instead, then, it’s worth looking out for properties in areas with potential for development. To help you do this, keep an eye on upcoming development proposals. If planning permission is in its starting stages as it stands, it could be years before anything happens. Thus, you can ensure your property value will rocket at a time with the most nest egg potential.

You haven’t made your wishes clear

It’s never nice thinking about things like wills and last wishes. Most of us would avoid doing so at any cost. But, the fact remains that this is the worst nest egg hole of all. The fact is, all your other wishes will go to waste if you aren’t clear here. So, it’s essential you leave written instructions about your hopes for your house. Admittedly, in most cases, the next of kin will automatically split it between them. But, this issue becomes complicated by things like adoption. If you don’t take care here, it could lead to ruptions and uneven distribution. Don’t let it happen. Instead, contact a solicitor as soon as possible. Only then can you rest easy that all your eggs will stay safe!