Friday, June 20, 2014
Parents just want to make sure their children are cared for, both when they are around and after. When deciding whether that should include helping adult children purchase their first home, here are some considerations to keep in mind:
- Don’t commit to more than you can spend, even if it is a loan.
- Decide if it is better to give the funds for the home as a gift or a loan, and if is a loan make sure it is documented.
- Make sure the children know what being a home owner means and what responsibilities come with it.
- Plan for possible future changes for the child, like trouble finding or losing a job.
See Ruth Mantell, Should You Help Your Child Buy a Home?, The Wall Street Journal, June 15, 2014.