Younger millenials and Generation Xers still want to buy their first home. How to pay for it? Well follow the yellow brick road. The first stop may be the Bank of Mom and Dad.
See if Bank of Mom and Dad is still open? As a buyer, this could work and does work.
The Bank of Mom and Dad
Is there a lignt still on at the bank at 123 Maple Avenue where you grew up? Per Realtor.com article, one-third of buyers today are receiving down-payment help from family and friends. Plus, nearly a quarter of first-time buyers are moving directly from their family home into homeownership, skipping renting altogether. First time buyers are waiting to find the right property, and saving money by living at home and not paying rent. This wait can sometimes make the leap into homeownership more of an emotional move.
American Gothic by Grant Wood 1930- Also I can see Bank of Mom and Dad
The Bank of Mom and Dad may not be offering full house purchase loans, but some somewhat lenient Moms and Dads to offer free rent programs allowing younger home buyers to put away savings for the home purchase. Sometimes free food or use of the extra car can be negotiated by loving children. Sometimes, the RV parked in the yard, that Mom and Dad, use for vacations can be lived in as an alternative to the free rent program and living under the same roof especially for married children.
Why Bank of Mom and Dad May Not Be Open?
Mom and Dad have life plans also, that may include their own retirement and loss of the steady income they have enjoyed in the past when raising their families. Going onto fixed income changes things especially when the desire to travel and see the country or world on their life long savings comes into play.
Parents may have to continue the education experience of teaching their children on taking their next steps to purchase a home.
Mom and Dad Should Consider This:
1. Openly communicate with your children about your retirement goals and set boundaries for financial support.
2. When gifting to your children, discuss generational differences in values and instill good financial habits.
3. Take care of your finances first before supporting others.
Alternatives to Bank of Mom and Dad
There are other ways to buy a home through saving and financial planning (Tip: Get a job and cut back on Starbucks)
If the Bank of Mom and Dad is closed temporarily or for good, start preparing for a down payment and saving for your own home. Talking to a financial planner is a good idea.
Kids not ready to move out? Let them live in an RV home on your property
As discussed earlier this is a real option. Many Moms and Dads are thinking of exploring the country and need a home for themselves and a place to park their beautiful motor home.
RV Garage Homes and Man Caves are Me!
Ready to Buy a home now with or without the help from the Bank of Mom and Dad?
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If you are looking to move to Arizona or Scottsdale and looking to buy a home in Arizona or sell a home in Arizona, contact Jeffrey Masich, Associate Broker and Realtor. As a specialty, I am the KING of HOMES FOR SALE with RV GARAGE or RV GATE. I would be pleased to help you and look out for your best interests while finding you the right home at the right price!