Should You Buy a Home for Your Children?

Posted by Kerri Mosher on January 4, 2017 in Blog |

All over the world, the price of housing has gone up much faster than wages have. Many people wonder why housing has gotten so expensive, but there’s a fairly simple explanation: it’s got a lot to do with supply and demand – basic economics! The population of the world has been increasing at a much faster rate than houses have been built. Demand is incredibly high, but housing is actually in quite limited supply. And when this happens with any commodity, the price of that commodity will shoot up.


There are, of course, plenty of other reasons – certain government regulations certainly haven’t helped – but whatever the reasons, we’re in a position where buying a house has become something of a pipe dream for many young adults. The situation doesn’t look like it’s going to get much better for young children these days by the time they’re old enough to leave home.

So does the new generation need a helping hand when it comes to getting ownership of a home? Unfortunately, it is starting to look that way. While it’s not quite right to characterize them all as helpless – something the media love to do, ignoring the fact that previous generations haven’t put them in the best position – it’s true that the parents of the younger generation definitely had it easier when it comes to getting a home. (And it’s not as if things were perfect a couple of decades ago, either!)
One thing parents often don’t want – and kids certainly don’t want! – is for people to still be living with their parents into their late twenties. But this is becoming alarmingly more common. It’s simply becoming more difficult for people to get into a financial position that allows them to live more independently. It’s becoming clear that the previous generation may have to help them get onto the property ladder.

But hey, it’s not as if modern parents are made of money, right? And we don’t exactly want our kids to lean on us for this sort of thing forever. Still, it might be a good idea to consider helping out with a home purchase. While parents still have to deal with modern housing prices, they may find it a lot easier to get a loan for a home than their children will. Their young age, a lack of credit score, and the existence of student debts (that will last for decades, by the way) will make it harder for them to get the help they need. So perhaps parents could consider this option. You can read more about your options over at LendingTree.


Is it really that important that people own their own home? Well, it’s certainly true that it provides more security. While mortgage repayments still need to be worried about, the fact that they own a home will make it easier for them to focus on their future. And with house prices rising all the time, it’s clear that it’s better to get on the property ladder as soon as possible. It’s not exactly an attractive proposition, but giving your kids some financial help can really benefit all of you.

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