Help Your Kids & Grandkids Invest In Their Future!

Now is a great time for all parents and grandparents who want to help give their children and grandchildren a real financial head start in life.

Buying a home isn't on the minds of many 20-somethings, but is an excellent opportunity to buy real estate low as a long-term investment. Right now we're seeing an over-supply of homes (many lender-owned, vacant foreclosures as well as short-sale properties) while interest rates are near historic lows and housing prices are very favorable. The affordability of existing homes is at its highest level in many years.

During my past 24 years in the real estate business, the majority of the home buyers I speak with are concerned where they can come up with a downpayment for their mortgage. In the buyer's mind, this is without a doubt their biggest road block. This minor obstacle is easily solved with some creative thinking and a little assistance from mom & dad, grandma and grandpa and even a brother or sister.

As recently as 6 months ago, there were many 100% financing mortgage programs available, but they have all but dried up except for VA loans and USDA loans for qualifying rural properties.

The most popular home loan today for first time buyers is an FHA insured home loan, because FHA only requires a 3.5% down payment. The best part is that the entire down payment can be a gift from an immediate family member. This allows the parents to assist their children to buy their first home much earlier in life and essentially skip the need for them to waste their money on a rental. This can result in huge financial savings for their children and it allows them to build equity much faster than they could otherwise.

A few factors to consider about the current housing market:

• Interest rates are near 40 year lows
• Fixed interest rate home mortgages are readily available
• Mortgages with fixed rates help protect against future inflation
• Home values have fallen which makes it an ideal time to purchase.
• Home ownership often creates stability, security and it can become an investment like savings account.
• When you combine today's lower home prices with the low fixed rate mortgages in decades, it's clear that it is the right time to buy a home.
  

If you'd like to get more information on how you can help your child invest in their future, just pick up the phone and call me at (513) 615-1890 and tell me you read my blog and want to help a family member.