Think Twice Before Helping Your Children Buy a Home

By: Ruth Mantell Updated June 16, 2014 1:16 a.m. ET
It’s particularly hard for many young people to buy their first home these days without some financial support.

But before stepping in with a gift or loan to help with a down payment, parents need to ask themselves some tough questions.

Among them: What is helping my child going to cost me, not just now but also in the long run?

And is this even the right time for my child to buy a home?

It has always been difficult for many young people to put aside enough cash for a down payment. But it has gotten harder in recent years with growing student debt and a slowly recovering job market with limited stability and career opportunities.

That’s partly why first-time owners make up a relatively small share of buyers. According to the National Association of Realtors, first-time buyers accounted for just 29% of existing-home sales in April, lower than the average of 35% since 2008.

So, what’s a parent to do? Here’s some advice from financial experts.

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