Bank of Mom & Dad

Written by Jim the Realtor

May 12, 2017

boomers1

For those wondering how the market could sustain momentum, consider that twice as many parents are planning to help their children purchase a home than have already contributed.

They want to leave a legacy, and besides, you can’t take it with you!

5 Comments

  1. elbarcosr

    Personally, I look at is as though I am buying my retirement home. They will get to live in it for a steep discount until it is time for them to pay the piper. If they don’t want to at that point, house gets sold and the money goes to caregivers. Better than trying to rely on some dodgy long-term care insurance policy or being stuck in some place run by Nurse Ratched.

  2. Daytrip

    I like the way you think, elbarcosr. Tough, but fair!

    That’s the way to leave this mortal coil!

  3. TAJ

    Thanks for this datapoint Jim, very interesting indeed! As a millennial beginning to look for homes, this would definitely heat up the competition and make it even harder for people that don’t have this type of financial support.

    But I’m assuming boomer parents plan to use funds that may be tied to stock market performance – which seems to be increasingly getting away from fundamentals…

  4. daytrip

    “But I’m assuming boomer parents plan to use funds that may be tied to stock market performance – which seems to be increasingly getting away from fundamentals…”

    Smart, or lucky boomer’s are sitting on dividend stocks. Many, many boomer’s bought in before the many stock splits, so they won’t be selling Boeing or Apple, for example. Ever.

    As long as there’s tech-addicted millennials, there’ll be Apple. As long as there’s War, there’ll be Boeing. As long as they’re around, they’ll pay dividends.

Klinge Realty Group - Compass

Jim Klinge
Klinge Realty Group

Are you looking for an experienced agent to help you buy or sell a home?

Contact Jim the Realtor!

CA DRE #01527365CA DRE #00873197

Pin It on Pinterest