Baby boomers have expressed a desire to financially support their children and grandchildren purchase their own homes. This decision is mostly out of love, but also because it's a good investment decision.
Many baby boomers are anxiously eyeing retirement, very conscious of how much money they have saved and how much the recession put them back in their plans. However, a survey by Better Homes and Gardens Real Estate revealed that baby boomers aren’t just worrying about their own financial fortunes; they’re still very invested in helping their children.
More than two-thirds of baby boomers want to gift, loan or co-sign a loan to support their children or grandchildren purchase a home. Half hope they can, while only 10% said they “definitely” will. Already, 20% have done so.
"With historically low interest rates and competitive listing prices, now is a great time to invest in real estate for those in a position to do so,” said Sherry Chris, president and CEO of Better Homes and Gardens Real Estate LLC, in a statement. “However, in today's economy, saving enough money for a down payment can be a struggle for young adults.”
The survey revealed that respondents interested in providing financial support want to be very involved. They’re more interested in actually gifting or loaning the money than they are in co-signing a loan for the younger generation. They want to do so out of love, but also because they consider it a good investment.
Those who have already provided some sort of financial support to children and grandchildren are confident that they will do so again in the future.
"We're thrilled to see that younger generations' interest in homeownership is so strong and that their baby boomer relatives want to help them reach this significant milestone," said Jill Waage, editorial director of home content at Better Homes and Gardens magazine, in a statement.
The baby boomers are trying to be realistic in what they can provide. Those who are most interested in providing support trended younger (ages 45 to 54) and tended to have a household income of at least $75,000.