If you’re the parent of a millennial who’s looking to buy their first home, you may be concerned about whether they have the financial wherewithal to do so independently.
Here’s a tip for how you can help:
Open a gift fund for them. This will help your child get their financial footing when purchasing their first home. The truth is, the majority of first-time buyers are unable to pay any or all of their down payment and must seek help from a parent or some other source. This is a fact of home buying that often goes unmentioned.
Think about it in these terms: Helping your millennial take the first steps to buy a home now will help them for the rest of their lives. Unlike, say, the purchase of a car, you’re investing in an asset for them that will gradually appreciate.
Putting a little money toward a down payment or a gift fund for your child may make all the difference in helping them secure a fairly low interest rate on a home; having them stay sidelined could mean a potentially missed opportunity.
Locking in a 5% or 6% interest rate now will allow your child to generate wealth that they can build a family around in the future.
If you have further questions concerning how you can help your millennial, give us a call so we can set up an appointment today. We’d love to have a conversation and help you so that, in turn, you can help your millennial get on the right track.