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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]DH and I want to help DS to purchase his first townhouse, around 1M, but we want DS to have skin in the game.  DS has lived at home with us for three years and saved up 95% of his annual salary, after taxes, for the past three years with about 240K in his account.  [b]When he officially moved out two months ago, we gave him 600K for his 1M home purchase down payment.[/b] IMHO, that is the right approach. [/quote]

That's the right approach? Giving him 600K?? You call that having skin in the game? LOL. [/quote]

The kid lived at home for 3 years post college and saved 95% of his salary---so he lived fairly frugally.  That is skin in the game.  It shows he's committed to not just blowing all his money on luxury items.  He has 240K in savings/emergency fund.  Now that he knows he wants to stay in the area (likes his job, etc) he wants to settle down.  What parent would not help a responsible kid if they have that much money?

I get it---you are jealous that you can't do that or didn't have that happen.   But it doesn't mean the kid does not have "skin in the game"
[/quote]

Yes, I am jealous that I can't do that for my kid. But, seriously, 600k to buy first home that is $1 mil? That PP is out of her mind or a troll. I think she was trolling us. [/quote]

Glad you can admit you are jealous.

Not OP.  But we will likely do that when our kid(s) reach the point of purchasing a home.  And yes if they live in a HCOL area it might be a million dollar place.  If you have the money that the kid will get when you die in 30+ years, why wouldn't you help them now?  parents giving 600K for a home down payment are likely worth 20-30M+, so the kid has grown up in a much different lifestyle than you imagine.  The kid apparently has a job making 75-80k+ already and has manage to save most of it (so they are frugal and not just blowing it on worthless luxury/needless item).  Why give them only $80K to find a $400K place and they might want to upgrade in 3-5 years versus just giving them the amount needed to get a good place (likely newer TH in a great area) now?

Now if my kid lived at home and didn't save much at all, then I'd start charging them rent and certainly wouldn't gift them that much.  But fact is plenty of rich/UMC kids go on to be appreciative and financial sound members of society even with getting the extras from family.  Our thought is that extra $$$ does a lot more for them now than when they are 50+ and we are dead.  [/quote]

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