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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"
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So, the kid makes around $110k/yr with $400k mortgage and $3000 PITI? $600k gift is the only way he can afford a $1 mil house.
$3000 PITI is pretty tight for $110k salary.

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Any parent that is giving 600K for a downpayment would likely also be helping them out otherwise as needed.

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