With high home prices and mortgage rates, there’s a growing trend of parents buying properties for their children, allowing them to either pay them back or wait to take out a loan of their own. CNBC’s Diana Olick reports that these parents are eager to give their kids a chance at investment as many remain priced out of today’s housing market.
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#NBCNews #Homeownership #Parents
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This is more about a transfer of wealth than it is about good parenting.
Now is not a good time to buy. Unless u have to.
the hedge funds are holding the residential properties. which is weird because the fact that biden government would allow big hedge funds to come into the residential home market to use borrowed money to hold up and hold on to the houses that were meant for families.
Great choice. Finance it, become the bank, let the child pay the mortgage and let the child benefit/use the equity.
Talk about babying your children.
We kinda did that for our daughter and SIL, we fronted them 50% of the price of the house when interest rates were low, they got a 2.75% on a 30 year and their house payment is only $1200. It frees them up to start building their own lives.
Parents buying for your kids? Wouldn’t know, must be nice
Must be nice. My parents did not give me a dime for my house. At least they can't boast to their friends I don't owe them anything..
U think parents are getting paid back 😂😂😂😂😂
Mine helped me with a down payment. $20k is nothing to sneeze at when you're starting from scratch and in my case most (over half) of that was eaten up by closing costs and realtor fees. The way things are going the only way my kids will ever own a home is when I die and leave them mine.
Whatever it takes to get them out of the basement!
nah let’s just have investors buy all the single family starter homes, then they flip them and rent them out or sell them for an absurd price.
I'm 100% positive I'll have to do this for my kids… unless this crazy housing shortage gets figured out.
13 seconds. “And people are excepting it” Who ever is reading this. Let that sink in 🧠
Pretty soon there will be tents on the street in every town.The world has gone mad
It makes sense if adult children are paying rent and if parents can give them a hand with down payment.
That’s not good news. They need to buy cheap off grid plastic houses.
In Australia, they call this "The Bank of Mom and Dad." People who were able to take advantage of low foreigner migration and buy at very low prices (even if they might have had to deal with high interest rates) can now sell into a market with scarce supply, and high demand not only due to the prosperity of the Australian economy (thanks mining), but also due to a large influx of foreign cash and bidders. It's no different than what happened to Washington, Oregon, Texas, Florida, the Carolinas when wealth from NY and CA decided to spread outward.
There are plenty of places available it's just overall greed and slow moving on the bank and seller's parts. The seller wants more than the house is worth and the bank wants to charge a lot of interest to turn a profit.
A whole lot better than paying for college
Glad all those young adults have “cash buying” parents!
Don't fall for it!!! This is exactly what gaplened during covid. It's like a bait and switch.
Once prices get high again, prepare to pay high in property taxes. Where one expenditure lowers, another raises.
Parents paying cash for homes for their kids? Who has that kind of money these days? Must be nice.
LAWNMOWER MOM!!!!
Spoiled adult children who aren't getting their way and will never know what its like to work for something.
My goal is to pay 100% of my kids college stuff. Let them live at home for 2 years after college to save money – if needed. Plus give them a house down payment – – and 3 months living expenses in a savings account. I wish I could have done more but life gave me some ups and downs. I sometimes wonder if this is "good" or if it's pitiful help I'm able to give. On the side – I plan for my own "when the kids are gone" house to be big enough to give them each a bedroom and bathroom anytime during life if needed. I hope this means I doing right by them. Feels inadequate to me.
High home prices n high mortgages. Clowns. Buy at the top 🤡
😢 This housing bubble is created by the vulture investors who have been buying thousands of single family homes. A double whammy of interest rate increase by feds and mass layoffs will burst this bubble. This will be worst than 2008.
Intergenerational wealth is definitely symptomatic of the problem, as is intergenerational poverty. but it is losing traction as well…
This shows how large the stock option party boat was for the 'haves'.