I am eight years old and own my first HOUSE. I saved my pocket money from odd jobs to buy it and it’s now worth £500,000

AN EIGHT-year-old who saved enough pocket money from doing odd jobs to buy her first home has already made a huge profit.

Ruby McLellan, from Australiabought the property for $671,000 (£345,420) in December 2021, but the house is now estimated to be worth a whopping $986,992 (£508,088).

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Ruby had pitched together with her two siblingssister Lucy and brother Gus, for the plot of land in Clyde in the south-east Melbournewhen she was only six.

At the time, their father, Cam McLellan, a property investment expert, revealed that each of his children had saved $2,000 (£1,029) to contribute to the country.

With a partially built house on top, she was thought to become Australia’s youngest ever first home buyer.

“My name is Ruby, I’m six years old and I’m about to buy my first house,” she said 7NEWS.

Mr McLellan estimated that the price of the block rose by more than ten percent within months of the trio buying it.

“The price of that block has already gone up by $70,000, so they’ve done well so far,” he explained to 7 NEWS at the time.

According to suburban data from real estate.com.authe average house price in Clyde has risen from $625,000 (£321,740) to $677,750 (£348,895) since the children bought the property.

But according to CoreLogic, the average house price in Melbourne is currently $986,992 (£508,088).

It means that Ruby and her siblings have already made a remarkable profit of $315,992 (£162,667) in just over two years.

Mr McLellan confirmed that his children plan to sell in the year 2032 and share the profits.

“It was written for my children to use when they are old enough, so I have outlined all the steps needed to build a real estate portfolio,” McLellan added.

Speak with Daily Mail AustraliaCam said he wanted to help his children gain a foothold in the market.

He said: “It is now much more difficult for people to enter the property market and it will only become more difficult in the coming years.

“Because that was the case, my wife and I knew we always had to help our kids get into the market, so we thought, why not now?”

Once it’s built late next year, they plan to rent it out while it appreciates in value.

But Mr. McLellan emphasizes that it will not be a “free ride”. with his three children.

They will have to return the portion of the deposit that he and his wife paid.

If the oft-quoted rule that real estate values ​​double every ten to fourteen years holds true over the next decade, the McLellan children will cash in on their real estate investments.

Can a child own a house in Britain?

A CHILD under the age of 18 cannot own land or property in Britain.

It is possible to transfer property to a minor, but an adult will have to be the legal owner of the property until that child turns 18.

This means that the property in trust must be owned by trustees, for example parents.

The most common way the property can be held is under a “bare trust”, where another person holds title to the property as a nominee.

Where a parent transfers assets to a minor child and the assets earn more than £100 per year, the parent is liable to pay income tax on that income until the minor reaches the age of 18.

When the property is sold, it is taxed only on the child and not on the parents.

A similar alternative is to prepare a trust deed, a legal document that establishes who the trust beneficiaries and trustees are, and how and when the trust’s income and assets are to be distributed to the beneficiaries.

In this case, the trust itself is actually considered the owner of the property, and not the child or his parents.

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