Are Multigenerational Households the New American Dream?

Homeownership is becoming more unaffordable by the day.  Between the high interest rates and the uncertainty about buyers having to pay real estate agents’ commissions instead of sellers taking responsibility for all the commissions, it is no wonder that most Americans who have never owned a house or condominium despair of ever being able to afford to buy one.  Of course, people under 40 have been lamenting the state of the housing market since before these developments.  Wages are so low and groceries and rent are so expensive that it is almost impossible to save up enough money for a down payment.  The easiest way to get in on the homebuying game for the first time is the same tactic you used to rent a limousine for your high school prom, namely, ask your parents for money.  Most parents who can afford to give their children money for a down payment are happy to do so.  For the time being, at least, everyone else is out of luck.  If you learned hard truths about the real estate market only after it was too late, or if you want to strategize about using your current homeowner status to help your family build generational wealth, contact a Bronx real estate attorney.

When Trust Fund Babies Grow Up to Be Nepo Homebuyers

Barbara Corcoran of Shark Tank has been saying for years that no one under 40 buys real estate in New York City unless their parents contribute to the down payment.  Properties in New York are so expensive that a 10 percent down payment is beyond the means of thirtysomethings, even thirtysomething trust fund babies with high-powered jobs and zero student loans.  Alena Botros of Yahoo Finance refers to this phenomenon as a nepo housing market.  It’s good news if your parents can afford to contribute to the down payment on your very own house or condo, but it’s a real bummer for everyone else.

What If You Don’t Have That Kind of Money?

If you own a house, but you don’t have tens of thousands of dollars of cash lying around to help your children with a down payment, your house can still be a source of generational wealth.  Living rent free with parents is a popular tactic for saving up money for a down payment; in other words, let you kids continue sleeping in their childhood bedrooms and not keeping track of who pays for which groceries, you enable your kids to save up for their own down payment; it is just a slower version of what the parents of nepo homebuyers do.            The fastest way to turn your kids into homeowners is to add their names to the title of the house you already own.

Schedule a Confidential Consultation With a Bronx Real Estate Attorney

A real estate lawyer can help you make wise decisions about buying and selling real estate in today’s inhospitable market.  Contact Cavallo & Cavallo in the Bronx, New York to set up a consultation.

Source:

ca.finance.yahoo.com/news/nepo-housing-market-more-third-170559313.html