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[quote=Anonymous][quote=Anonymous]My dad bought my condo when I went to law school. It was approx 150k and he put down 20%, out me on the loan with him, and paid the loan on it for the first 3 years while I was in law school. I lived rent free during law school, though I did pay for some utilities etc when I had earnings from summer positions. When I graduated law school and started my first full time law firm job, I took over the loan payments and all association fees and utilities full time. I stayed there for another 4 years. That condo I eventually sold for approx 240k, which proceeds my fiancé and I used to buy our first place together.  That next place we eventually sold and bought our house in DC with all the equity we had at that point in time plus approx $50k gift from my husband's parents for the down payment for the DC house. Now we moved out of DC and used the equity from the DC house sale to purchase this house.  So the gift from 20 years ago from my dad has grown exponentially for us and really allowed us to be on the "property ladder" fully the whole time in a way we didn't really foresee at the time but has been extremely lucky. [/quote]

This is very smart and what I'd like to do to help my DC. It's a smart investment no matter what because even if your kid winds up not taking over the loan or staying there, you have an investment property you can rent or sell. But yes, the think with real estate as an investment is that you do not *need* to start out in an 800k row house or something.

This is also an argument for starting out post-college life in a midsize, affordable city. You don't have to stay forever. But live somewhere where it's possible to buy a small house or condo in a desirable area (you need to think about resale) as pay the mortgage in an entry level salary, and then by your mid to late 20s, you will have some equity built up. And it's more feasible that parents could help with a down payment on a 150-250k home than something 500k and up.

This enables people to them move to places like DC, Boston, Seattle and buy property. Especially if they marry and combine resources. It's all about working up incrementally.

I wish this is what I'd done. I knew nothing. My parents knew nothing. Now I get it and my own kid will get a much more complete and useful financial education (in addition to some funds for a first home).[/quote]

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