Why First-Time Home Buyers Are Thanking Their Parents
If you’re a homeowner, chances are you’ve built up a lot of wealth
just by living in your house and watching its value grow over time.
And that equity..... It’s something that could help change your child’s
life.
Since affordability is still a challenge, a lot of first-time buyers are
struggling to buy a home in today’s market. Even if they have a
stable job and a solid plan, buying can still feel out of reach. But
that’s where your equity could make all the difference.
To give you an idea, the average homeowner with a mortgage
has over $311k worth of equity, according to Cotality
(formerly CoreLogic). That’s significant. And some parents are
using a portion of their equity to help their children become
homeowners, too.
According to Bank of America, 49% of buyers between 18 and 26 got
money from their parents to use toward their down payment.
Even though the data doesn’t specify how many parents used their
equity, the wealth they’ve built through homeownership may have
helped make it possible, especially given how much equity the
average homeowner has today.
What is right for each person’s specific situation always varies, but
there is little doubt in the powerful legacy equity in a home is to pass
on. It helps those younger people buy a home, build equity of their
own, and begin the next chapter of their life with a little less financial
stress and a lot more stability. And for those parents? It’s a way to
turn what they've built into something deeply meaningful.
This isn’t just about money. For many homeowners, it’s about being
the reason their child gets to say, “we got the house.” or “we got to
move closer to our parent's house”. Giving them the kind of head
start they might’ve only dreamed of at their age.
“Of those who did receive monetary aid from parents and
grandparents to buy a house, 45% of Americans said they
would not have been able to purchase a house without
financial support from parents and grandparents.”Bottom Line
Your equity could be the thing that makes homeownership possible
for your children when they might not be able to do it on their own.
So, here’s the question.
If helping your kids buy a home was more feasible than you
thought, would you want to explore that option?
If you want to learn more or find out the best way to make it happen,
talk to us & let us help you explore yo