What affect will recent and future lending changes have on the significant number of 20 and 30 somethings who are using mommy and daddy’s equity and 401ks to buy homes and condos? Are the rules on monetary downpayment gifts etc. changing? Also, as the parents equity vanishes and their retirement accounts fall in value (if the market downturn continues), will the kids actually have to save for their own downpayment, or just leave town? This may seem petty, but I can’t count the number of people I met in SoCal who were dipping into the old guy’s Del MAr or LaJolla equity to fund a LaCosta condo purchase.
I believe that this is an overlooked factor (albeit small) in the recent boom. As prices escaladed, Mom and Dad dipped and helped finance the kids so “they could get into the market before it was too late”, helping to drive prices up. The boomers are also incredibly selfish, and they ‘ve helped to create a culture in their offspring of “I want it all, now”. I know ALOT of people who were handed hundreds of thousands for that $850,000 “started home”….
I believe that this is an overlooked factor (albeit small) in the recent boom. As prices escaladed, Mom and Dad dipped and helped finance the kids so “they could get into the market before it was too late”, helping to drive prices up. The boomers are also incredibly selfish, and they ‘ve helped to create a culture in their offspring of “I want it all, now”. I know ALOT of people who were handed hundreds of thousands for that $850,000 “started home”….
I believe that this is an overlooked factor (albeit small) in the recent boom. As prices escaladed, Mom and Dad dipped and helped finance the kids so “they could get into the market before it was too late”, helping to drive prices up. The boomers are also incredibly selfish, and they ‘ve helped to create a culture in their offspring of “I want it all, now”. I know ALOT of people who were handed hundreds of thousands for that $850,000 “started home”….
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