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
What a great mom, My parents are wealthy and even seeing me struggle and even when I barely make rent they almost never help me lol. They’ll just go on a help my other two older and younger siblings or buy more properties. So nice to see other parents do this for their children, something I would do for mine.
It sucks but there’s nothing you can/should do to change their mentality. They all chose their path and you can/should forge your own. No one in this life makes it on their own, there’s no such thing as a self-made man. There will be opportunities and help presented to you in life, it’s just up to you to recognize them and seize it.
Both me and my hubsnad didn’t come from wealth. I came from an ok family, my father wasn’t wealthy but pushed himself to pay for my college degree. My husband’s parents didn’t help him with anything, they were not rich but they chose not to help not even with giving him a car… fast forward, we make 6 figures, we own a house, we just bought a house in Asia too our cars are paid off and we have a blessed and comfortable life.. not bragging here but just remember u can always make it out there even without your parents assistance.
@LAit’s true. If i can do it without my parents help, so can anyone else.
My parents started charging me rent as soon as I started working. I eventually move out on my own. My younger brother however live at home until he was 30 and my parents bought him a house…just to get rid of him.
In give – there is taking away.
You give something but life lessons are taken away from giving.
You give money – but the self pride and achievement is taken away.
You give a house but the responsibility aspect of taking care of it is taken away.
Great for the Rich kids
I think we need to revisit the Federal laws around non-citizens owning property (land and housing) in the US. If we stopped this from being legal and made the rule retroactive so that those who are not citizens have a year to sell their land or property to a US citizen, it would definitely open the market up and make it affordable, especially in and around major cities.
There are many permanent residents with green cards who own houses in the US. Should the government force them to sell their properties just because they are not citizens, clown?!
100% agree
Complain.
Complain. Anyone remember in 2000 when apartments would give you 2 months for free? No one cried for home owners who rented their house out and lost money. They could not charge what their mortgage was. The market will go down again.
I scraped saved and sacrificed for a home. It made me value what I achieved. I would never ever ask my parents to do something like that. They worked hard for their retirement.
It sounds like the mom was pretty indulgent. Can’t imagine being alarmed because a 24 yr old just getting out of school doesn’t own a house yet.
Parents shouldn’t do this. It prevents the housing crash that is needed for housing to become affordable again. Idiots.
My parents were abusive alcoholics. I’m happy to say I own my house now while they’re stuck couch surfing and complaining about how bad life was for them.
I wanna call her mom
You forgot to say “rich parents”
Consider it a piece of their inheritance, and since it becomes theirs, you do not cross that boundary in demanding what they do or don’t do with it. Adults of any age need to work (already been working since age ten) to survive. Hand outs is one thing. Legally buying and putting property in your adult children’s names is something . It is business. Who will keep the house if your adult child marries or gets
divorced or dies? You will give up all strings attached.
It is like , do you cut his meat for his plate or shop for his underwear?
Letting go is the best lesson to learn from.
My husband worked since he was 16. I worked full time and in a university full load. Determined minds. Let your kids become goats 🐐.
The only help i get from my parents are my car payments. And im 32, make about 30k a year, married with children, and me and my wife live with her parents payin rent for a house cus we all cant afford to live on our own
I admire you and your wife. Maybe the rent helps your parents; maybe having grandparents around helps your kids. I like your solution, even it if is temporary. Families sticking together in this tough time. I really admire you.
Failure. On all ends.
@Sandy Allessandrini temporary for over 10 years. Every year when we have enough saved up for a down payment for a house, the prices gone up. We gave up in 2021
why can’t the children work? what’s the rush to buy an apartment. You want your own place, buy your way out. And if you have a significant other, even easier now both of you can invest in the apartment. Why is this such a hard thing? I sense spoiled entitlement.
Wow. All cash. Wish I had that laying around. Makes sense, if your going to pay to live somewhere why rent when you can own.
You will learn more and value the item more by sacrificing yourself, earning, and saving, and buying a house when YOU are ready. Having someone do the hard work for you teaches you nothing but entitlement. Live within your means and put in the hard work.
Get used to 15%
real estate agents and bank begging us to go to our parents to afford a house. 😂👋
Maybe if people stopped making clones of themselves (children), without having the money to even care for themselves, these people would have enough money to buy homes. Just stop already. Boat is full. We have enough humans. We don’t need another you walking around. I promise, we’ll be fine without your genetics being spread. With inflation and the economy being the way it is and the shape of the world, anyone who brings children into this demon ran dimension should be charged with a crime. Unless you are ultra rich, you cannot afford to have children, buy a home and all the necessities to take care of yourself and your copies.
Must be nice to have generational wealth
Good for them. Only fair that wealth should beget even more wealth
Fake
Van life is the way to go.
My parents did this for me last year, now I’m paying the mortgage and basically renting the condo back from them until I pay it off / pay them back for the down payment
No!!!!!
It’s a land grab at this point. People are going to risk it all now to make sure they and their loved ones don’t end up on the street. Too easy to do in America.
Its their money and their family. None of my business.
My parents are dead. Good luck to me? Maybe she’ll adopt me. And buy all my dreams.
This is cap. Bidding wars are no back.
That’s the problem. The previous generation had everything handed to them in fair economic conditions across 70ish years and have yet to pass on the wealth.
This is really frustrating to me. This is a big reason the rest of us can’t afford a home. They’re driving up home prices for the rest of us.
Sorry pal this society needs forever renters. Most people ain’t supposed to be homeowners.
You will own nothing and you will be happy by 2030
@James Locklear yeah, they can forget that agenda. Thankfully, I already own a home that my husband and I inherited from his parents, but it’s far too small for our family. It will do if I can never buy something bigger, but I will never rent again under any circumstance. I refuse to play into their “own nothing and be happy” BS.
We need another Mortgage Bubble burst, so we can watch the Corporate landlords and Ma and Pa flipper lose their arses.
Because this is THEIR fault.
Housing today is not a asset. It’s a liability. If my parents have me this option I would say no.
I have enough for a 20% downpayment but not the income. My mother owns several properties outright and told me it makes no sense to buy a home if you are going to inherit one of my properties one day and have a home for yourself. I may just save the money and invest so by the time I inherit it I can spend money on renovations since the home will be very old by then. I have friends who earn more money than me but only could come up with a 10% downpayment, to avoid the additional insurance premium they needed 20% so they begged their parents and in-laws to borrow money to make the cut.
The Great Housing SUPPLY Crash
This second bump was obvious it’s the people who were waiting out the price drop
So mommy and daddy buy you a house and Biden forgives your student loan debt… great way to be an adult! 😂😂😂
We will be signing our last mortgage check now in September, never asked a penny to parents and I am proud of it. I am pretty sure my parents know what kind of person they raised.
Short term solution: buy kids their new homes
Long term solution: CUT INFLATION, reduce taxes (for the poor and working class especially, IDK about rich people [they may keep their rates or Have to pay more]), reduce government spending, houses become more affordable. [Then option B would occur as the kids should eventually know how to finance on their own]
Quit driving new rides and buying the newest iphone..i just bought a house AND fixed my credit within 2 years…EVERYBODY can afford to save money and cut spending..figger it out
This country is so broken.
The tax code literally encourages this behavior… There’s no room to be mad at people who are handing their wealth to their kids tax-free
I feel for youth trying to buy a house, but parents buying for them is only going to inflate prices even more. When most 20-30 year old people cannot afford a house, prices will come down. However government needs to rein in corporations buying excess properties to rent out.
Greedy boomers are charging their kids interest! Believe that! Also letting their kids be homeless while they hold stacks of money from properties that have gone up 1000% with no work and they’re buying more houses making it unaffordable.
This is just nut.
That’s actually really good. My rent just went up for one bedroom again, it’s up almost $200 since I moved here five years ago. Ridiculous really. I do plan to buy a house in march and stop throwing away money.
Who’s parents? Where are they? We’re also accepting donations.
Ill have to say it also must be nice to have parents that are successful. Some like myself were not so lucky.
“Adult” children.
Do not covet thy neighbors parents.
Completely opposite in my country. Young professionals are driving our housing markets. And my tiny little country is supposed to be ‘developing’. I guess we pass that stage now😊
This is white people problems
Must be great to have mommy and daddy buy you a house.
Just further creating a generation of spoiled entitled brats
@SharkGrayC7Z06 Corvette pretty ironic coming from a boomer
@bluhturn actually I’m a millennial
When you get what you voted for.
Dumbest thing ever. Buying a house is NOT the most important financial transaction someone will make AND it’s not an investment.
I have a neighbor who’s parents bought him a studio apartment. The young man was very fortunate to have parents who did that for him. His maintenance is $400 a month.
That’s nice. But he will never have the confidence of having accomplished that himself.
As a single mom in knew i had to make a decision of buying my son a house he is 27 years old and with the prices in los Angeles CA being so high it would be impossible for him to buy on his own .Best decision I have ever made
We all know folks who had parents that hooked them up, but those kids aren’t all the same. Some of them know full well that they’re blessed, while others look down on “the welfare bums who get everything for free.”
Sad times we live in.
It really must nice. And thise same kids tell us ones with daddy’s help. We are lazy, the homeless are are drug addicts…ect.
If you don’t have rich parents or money.
Remember, Jesus was poor.
POOR people go to Heaven.
😄 😁
This shows how large the stock option party boat was for the ‘haves’.
Intergenerational wealth is definitely symptomatic of the problem, as is intergenerational poverty. but it is losing traction as well…
😢 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.
High home prices n high mortgages. Clowns. Buy at the top 🤡
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.
Spoiled adult children who aren’t getting their way and will never know what its like to work for something.
Wait that’s boomers though
LAWNMOWER MOM!!!!
Parents paying cash for homes for their kids? Who has that kind of money these days? Must be nice.
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.
Glad all those young adults have “cash buying” parents!
A whole lot better than paying for college
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.
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.
That’s not good news. They need to buy cheap off grid plastic houses.
It makes sense if adult children are paying rent and if parents can give them a hand with down payment.
Pretty soon there will be tents on the street in every town.The world has gone mad
13 seconds. “And people are excepting it” Who ever is reading this. Let that sink in 🧠
I’m 100% positive I’ll have to do this for my kids… unless this crazy housing shortage gets figured out.
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.
Whatever it takes to get them out of the basement!
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.
U think parents are getting paid back 😂😂😂😂😂
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..
Parents buying for your kids? Wouldn’t know, must be nice
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.
Talk about babying your children.
Great choice. Finance it, become the bank, let the child pay the mortgage and let the child benefit/use the equity.
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.
Now is not a good time to buy. Unless u have to.
This is more about a transfer of wealth than it is about good parenting.
These are going to be the same folks on IG and every other social media platform talking about they’re “22 and own a home” and “we all have the same 24hours in a day” lol. They’ll never own up to the way they managed to get their house when other working people can’t lol.
New generation can’t afford a house? Time to squeeze the previous generation.
So she thought it was a good idea to overpay on a condo with a 7k monthly mortage at todays rate (so 5k of that going towards HOA/ taxes/ interest/ maintenance etc) instead of “wasting” 2k on rent for the same unit. Not to mention she is taking away any sense of achievement from her son. Maybe he should start paying back his student loan at his age.. oh but she paid for that too.
The generation that will never stop depending on their parents 😂
Talk about ignoring 70% of the country and only referencing the top 30%. Can you say afluenza much?
Boomers are by far the most entitled generation.
This is why the price is going up. As long as you have morons willing to pay whatever price for homes, the price will remain fictionally high.
If you ain’t rich, you have *NO* chance. None. You should already know you’re a permanent slave for the next 60-120 years at the least.
Can’t afford that. Owning a home in their 20’s was never given. However, our home is paid off, 54- 400 wt solar panels that keep the electric bills history, all new appliances including the heat pump.. that’ what a family member will get someday. It may or may not go to a child or grandchild. It will go to a family member smart enough to know the value of no mortgage or utility bills, low tax rate (thanks CA prop13) no need to buy appliances for decades. The deal? MUST be kept in the family or goes to charity.