More parents helping kids buy homes
Hey, baby boomers! Pondering what gift to get your kid who’s all grown up? For many of your peers, the answer is a house.
One in five baby boomer couples have already given at least one of their children the means to purchase a home — either buying it outright, furnishing the down payment or co-signing the loan, according to a survey from Better Homes and Gardens Real Estate.
And more than two-thirds (68%) of respondents said they expect to provide financial support to their children or grandchildren in the future to help them afford homeownership.
Many real estate agents around the country have observed this trend gain steam since the housing bust began.
“Parents want to see their kids in a stable living situation,” said Chayah Masters, a Coldwell Banker Residential agent in Los Angeles. “Plus, property values have come way down. Why not help the kids while they are so low?”
The typical U.S. home now costs about the same as it did back in 2003. In some markets, like Phoenix, Orlando and Las Vegas, prices haven’t been this reasonable since the late 1990s. And low interest rates make homebuying an even more affordable investment.
In New York City, according to real estate agent Chazz Levi, many foreign nationals are buying apartments for kids going to college in town.
“I think it’s a smart thing to do right now,” she said.
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