24 Feb Should you help buy your kids a house?
One of the things that have been leading to the growth of the real estate industry is the monetary support that both grandparents and parents are giving to children when it comes to buying homes. The simple reasoning that is making parents do this is that they want their kids to venture into the real estate industry at a young age and also get to live in the same locality that they grew up in.
When you look at the price of houses today, you will note that there is a challenge a homebuyer faces as far as buying homes is concerned. This is shown by the fact that a detached will cost $635,000 in the greater Toronto area while the same house goes for about $925,000 in the greater Vancouver area.
In the event that you want to help your child buy a home, you will need to look into some factors. Some of these factors are the financial abilities of the child, the stability of his marriage if married, your financial might as the parents and lastly, your philosophy as far as parenting is concerned.
Philosophy of the parent
Things have changed and parents no longer say that since they never had any help in buying houses at their age, their kids should also toil on their own and buy the houses. One of the things that have led to this is the fact that house prices have hiked and a little boost is always helpful especially to those people buying homes for the first and second time.
After being home owners for a time, parents have come to realize and see the advantages of being a home owner. Their decision to help their kids in buying homes has been cemented by the financial struggles involved as well as the fact that there limited options available to a homebuyer as far as housing is concerned.A good decision it is to the parents.
The helping involves three things; a gift, a loan with the normal rates of interests or getting loans that have little or no interest rates. Therefore, the trend that is being observed today is that most parents are adapting a philosophy of helping their kids with housing especially in cases where the parents have the financial might.
When it comes to offering this help, you cannot ignore the child that is disciplined as far as saving is concerned since you know they will buy a home eventually and help the kid that will never have the ability of buying a home through their own means. You need to make sure that if you have more than one child, all of them get equal benefits. Should you help one child and leave out the rest, they will always say that you liked one child best and even at an advanced age, the hurt caused by this will still be fresh. This means that should you help the firstborn become a homebuyer, you have little option other than helping all the rest in a way.