Should you help buy your kids a house?
With average home prices on the rise, it is easy to see a challenge for first-time home buyers. So, as a parent, should you step in to help out? Here's what to consider.
For some first-time home buyers, their ability to enter the real estate market is partly dependent on support from parents. From the parents' perspective, they realize the importance of real estate investing and want their children to be able to enter the market.
This Financial Post article from wealth advisor Ted Rechtshaffen details the factors that parents should consider when trying to decide whether to assist their children with a first home purchase.
Factors include the parents' own financial philosophy and circumstances, the financial strength of the child, and the strength of the child's marriage (if applicable). Helping a child with the largest purchase of their lifetime is a wonderful gift, but not one to be taken lightly.