He Agreed To Help His Kids With The Down Payments On Their Houses, Except Instead Of Loaning Them Money, He Wants Equity In Their Purchases
Many parents believe that after their children graduate from college, they’re on their own and will have to pay for their own housing and living expenses.
However, the cost of living and the housing markets these days are insane, and some young people need help building themselves a foundation.
One man agreed to help his two children with the down payments on their ideal houses, except instead of simply loaning them the money, he wants equity in their purchases.
Although he’s not an extremely wealthy man, he does work hard and makes around $200,000 a year. He has a lot of money saved up and, in the past, has used it on things he wants, like old cars to restore.
His kids have recently graduated from college and are ready to purchase homes but have been struggling to do it on their own.
“My kids approached me about help getting a house,” he said.
“If they can go into a purchase with 25% down, they can save on fees and get a better rate.”
He agreed to give his kids what they would need for a 25% down payment on their houses but expected equity in the purchases.
For instance, instead of simply handing over 1/4 of the price of the house, he would essentially be investing in the house and would get 1/4 of the profits when it’s sold.
W PRODUCTION – stock.adobe.com – illustrative purposes only, not the actual people
While his son thought that was a reasonable plan, his daughter was upset that he wouldn’t just give her the money or an interest-free loan. She told him he was being ridiculous.
“My son took up on my offer and bought himself a moderate home,” he explained.
“Between a first-time home buyers program, my investment, and his and his partner’s savings, we managed to buy a house for them with almost a 50% down payment.”
Meanwhile, his daughter is still angry with him. So now, instead of getting the home she wants, she will settle for a condo within her personal budget. She also accused him of taking advantage of his son.
Was he wrong not to offer his kids an interest-free loan?
You can read the original post on Reddit here.
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