So I guess I live in a HCOLA, doesn't feel like but sure. I certainly have always lived in expensive areas and my mindset has always been well you buy small, flip, and trade up. I certainly never expected to be in a position to help my kids buy a house. I have always been worried about our own retirement and retiring early has always been the plan. So the idea of forking over say $30-50k hasn't been on my radar. Neither has been forking over $25k for a wedding or $25k for a car.
But circumstances change and opportunities change. Now things are bit a different and perhaps we can. My kids will certainly now be getting substantial help from my mom for a house or investment account. I know that she plans on leaving them her house. She's 70 and hawaii real estate is valuable.
But recently a friend told me in confience she helped her son buy a house. He bought a $1.2M house and she owns 25% = $300k. She put down $300k and her name is on the deed as owner for 25%. Her parents did this for her and her brothers. They did this and when her brother got divorced they had to sell the house and settle our with her father (her mother had passed by this time) his share of ownership.
She said "no marriage is forever and she learned that watching her parents." $300k is a lot of money to gift your child and have them lose in a divorce. Instead she decided to be a part-owner in a house to help her son and daughter in law afford it and then if she and her husband die it'll be part of her son's inheritance. She also has a daugther and would offer the same deal even if her daughter buys while single.
That made me think okay that's what I'm doing. If we are fortunate enough to have that sort of money then I will likley help my children buy homes buy becoming a part-owner. As per our prior post I'm not sure I'm comfortable giving them $300k to buy a house. I think I might need to be an "owner".
Have you ever heard of this? Do you think it's a good idea?