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[quote=Anonymous]My grandmother gave me 10K on the condition that I buy a house with it. I took it and bought. I sold that house when it was up nearly 100k in three years. Bought another townhouse because I didn't have enough cash to put 20% down on a single family. Then the 2007 market crash hit. If I had waited to sell the first house, I would have lost her 10k. The second townhouse fell 20% in value instead of the 32% that the first townhouse fell in the same time frame from when we sold it to the market bottom. That second townhouse has nearly recovered its total value. We made up the loss in purchase price by renting it out continuously.

That experience has soured me on contingent family financial gifts. Where you live is such a personal choice, and when families make contingent gifts to adult children, they put them at risk of bearing a financial loss when the do not have the earning potential to support such a loss. It's great when it works out, and it works out better for most people, but not always, and real estate has risks just like any other investment.

I don't think that paying rent is throwing away money at all. What if your adult child qualifies for rent-capped apartments in their first years of working? Once they no longer qualify, we'll see. I never want them to feel limited by my generosity or to take on too much risk because I am trying to control how they use a gift that I give them.

With that said, that grandmother was very generous and wise. She passed away, had trusts in place, and had named me beneficiary, but I did not receive what she had intended for me. My father took it. I chose not to pursue legal action. I found out much too late. I wonder if she gave me this gift because she was suspicious that something like this would happen. I appreciate her attempts to remember me. It was the best she could do.[/quote]

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