Buy Your Kids A House Now In Case They Can't Afford One Later? - Ramsey Show Reacts

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[scarpfish]

The best investment that parents can make for their kids is making sure that their own nest egg is secure so they don't become a burden on them when they're old.

[devonpeters]

I think this is a great idea. It’s likely not what Ramsey will advocate for, but I think there is a lot of wisdom in this if you can afford it

[janwells]

There were a couple cultures who bought newlywed couples a home for a wedding present. Then they start saving so they can do the same for their kids. Nobody pays years of interest or rent to strangers and that extra budget can go to upkeep and improvements. It benefits the whole community by keeping pride, morale & values high from beauty and maintenance. What a contrast to today's way of starting out with nothing and debt. I would say we are the ones who have it upside down.

[kcc]

Even if you pay cash for another home for your kid(s), why not let your child/children TRY to buy a house on their own? My parents were capable, but I’m glad they didn’t. Doing things on my own taught me financial responsibility.

[SDALLE]

So many salty people smh. It’s called generational wealth, it’s literally how families break the poverty cycle. There’s nothing wrong with inheriting property or any wealth as long as you recognize and are appreciative of the efforts and hard work your parents put in. This is the right way.

[rikmik]

The lady is not wrong. If you have an overwhelming amount of debt you should completely avoid this but if you have everything payed off and can afford this then yeah go for it.

[joshualeone]

As a way to store wealth, sure. Keep in mind, the child is likely going to want to live elsewhere when they grow up. Jobs, spouse, and just life in general may cause them to cash out on that house.

[thenewwayhome]

She got a great point though. Doing what she said, buying a house is a long-term investment if you're a parent who wanted to secure your children's future, this would totally work.

[linuxsurfer]

There's just a *bit* more to owning an investment property than buying it and then "letting someone else pay for it".

[FrankS]

I HATE how Ken always downplays how bad things are right now and just attributes it to “media hysteria”. It’s the opposite…the media is doing everything to cover up how bad things are.

[brendandevinemeyer]

The first thought comes to my mind is what happens if said child does not get a job or want to stay in said town, what happens if they get married and want to move closer to his or her parents or strike out on their own.
Both valid thoughts arguments concerns if you will even that are not addressed or even brought up in that statement of higher child a house 16 years before their even ready to own a house.

[Elizabeth_lowkeyluxuries]

If you can afford it, do it. I wish I would have bought myself a house 20 years ago. The houses I looked at are worth double now and I would have had it paid off! Hopefully I'll be able to leave my home that i did buy to the next generation and it can help them later. A similar home will cost way more in 20 years than it does now.

[DarthBalsamic]

At first I wasn't on board with this, but after some thought I'm actually for this. It doesn't even have to be the most expensive house, but I do think stewardship of home ownership is important and is beneficial to pass on. I think we ought to do alot more stuff like this as families and communities.

[katelynglidewell]

I love this new series of addressing BS Tik Toks.

[joycethorn]

Money paid out for college by the parents, is non recoupable, vs a house can be sold for profit, plus college fees will always go up.

[Leftiesarelosingit]

I think parents have a good idea of who their kids are. There are some kids who will just live off the nip and won't do anything knowing they have this to fall back on, others will add too it for the ones behind them.

[qmakesithappen]

She’s a realtor so there’s that but she has a great point. Hard to uncover everything in such a short clip but overall personal finance is personal and there will never be one way to build wealth. Loved the dialogue you two had 😁

[mrtimewcwchamp]

I have friends who parents did that for them. It’s actually not a bad idea.

If the child doesn’t want it you can sell, or if it appreciates a lot then you can cash out refinance some of the equity to pay for college and still keep the house.

Especially considering the average home price from even 20 years ago until now, and wages aren’t keeping up.

[pyzik]

We actually had this discussion at home. We might consider doing something similar to this (paying cash or large majority of cash for it).

[mahadevovnl]

How is it not true? 20 Years ago you could buy the average house with 5x the average wage. Nowadays you need 20x. It's already nearly impossible for many new home buyers to get a mortgage even with a great income.