1.Have at least 20% down in Cash that is NOT SOURCED from the following: Prior sale of another house in a bubble zone, actually equity extracted from a house in bubble zone, from Mommy or Daddy.
2.Are first time buyers.
3.Age 35 or younger. In the case of a married couple, both must meet this criteria.
Is the above criteria somewhat limiting though? I mean, let's ask the realtors. What percentage of "buyers" these days fit into #2 and #3?
Could be some relocation from out of state. Could be some trade ups. Folks simply moving from attached to detached.
And yes, some of my neighbors that bought in 2004 appear to have obtained financing from Mr. Dad and Mrs. Mom Incorporated, as these folks are in their early twenties, along with the brand new M5 they park outside.
Perhaps not meaningful when counted individually, but summed up together could be meaningful. Not suggesting this is going to support home prices. There is too much inventory in most places. But it seems like there is a tendacity to speculate most people aren't in a position with the 20% down, which might not be the case.
I know among asian communities, it's not uncommon for parents to help out kids with the initial down payments, (not that ours did). I mean, it makes sense. Several parents pay for their kid's tuitions too, why not help out your own kids if in a position to do so. I'm assuming this isn't just an asian thing. There's probably other non-asian parents out there that try to do the same thing for a good kid that's been responsible, provided they are in a position to do so. Why not? I plan on it, provided my kid doesn't turn out terrible…It's better than paying taxes only to see it bailout subprime complete strangers, or better than spending it firearms sent to Iraq, or a rebate check that eventually ends up in China.
