Reply to Can we talk about parents buying their adult children luxury homes

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]My ILs bought BIL (and his wife) a house in an expensive neighborhood in Bethesda.  There were no other young families there because no one in their late 20s/early 30s could afford to live there.  It is a well to do neighborhood with an aging demographic.
Despite the house being fully paid for, they could not come up with the annual tax bill for it.  This cost ate thru his early inheritance instead and in the end 20 years later of a marriage constantly hampered by money problems, came the divorce and the admission that they couldn't even afford to pay the real estate taxes.
One could argue that the ILs wanted to help the young family and give them a nice place to live.
One could also argue that the ILs wanted to brag to their friends and show their son was a "winner" in life with his big fancy house and so crippled him with an unaffordable asset and floated his lifestyle with an early inheritance that was not compounding but eroded.

Parents do buy adult children luxury homes, but outcomes will vary.  Wait 20 years to see where the homeowners land.[/quote]

Wow. [/quote]

Wow, this is a great lesson learned, and a great example of why you don't create an artificial lifestyle for your kids.  I'm the poster who said there is a huge difference between "help" and "float."  Helping is giving your kids money for an addition or helping with a down payment for their first house.  Floating is pushing them into a life that they would never be able to afford without your help.  The latter is always going to be problematic. [/quote]

This is exactly what I have seen happen. It may look great now, but wait 20 years, when the parents are no longer footing the bills. [/quote]

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