If you’re a Snoopy/Peanuts fan like me, then you probably remember what Lucy wanted for Christmas – Real Estate! Lucy may not have been the most likable character, but she was wise beyond her years when it came to personal finances.
While most of us can’t afford to buy someone a house for the holidays, there are many things that we can do to help our children or other family members, to get into the market. Encouragement and education are a great way to start, especially for your young family members. Make sure that they know that there are special loan programs and down payment assistance programs, to help first time buyers get started. In addition, following Lucy’s advice, consider setting up an account that others can contribute to early on, towards a real estate fund (think birthdays, graduation, holidays, wedding, etc.).
If finances are tight and contributing towards a future investment is out of the question, set aside some time to talk to your kids about real estate and wealth building. If they understand and it becomes a priority goal for them, they are far more likely to do what it takes to reach that goal. If nothing else, make some time to sit down for an old fashioned game of Monopoly and take the time to explain the correlations to real life, while you’re playing. For teens & college aged kids, encourage them to take a personal finance class. Encourage them to gather information early. I’m always happy to meet with first time buyers, even if it’s years before they’ll be ready, in order to help them to understand the process and lay out a plan for success.
When your children go off to college, are you planning to pay for their living expenses? If so, you may want to do the math on the cost of housing and consider buying something for them to live in, instead. Roommates who pay rent should help cover the carrying costs, and then the home or condo can either be kept for investment purposes, or sold after your student graduates. If living at home is an option, perhaps charging “rent” that then goes into a house down payment fund might work for your adult children?
Help set realistic expectations. Our kids have been very fortunate to grow up in Danville. Encourage them to be willing to start out small. Investing early in a small condo or duplex, in a more affordable area, may be the stepping stone they need in order to eventually be able to afford to buy a house in a pricier area.
Finally, make sure that your own estate is in order. If you own real estate it is wise to consider putting your property into a trust, both to avoid the costs associated with probate and to make sure that your future gift intentions are followed. If you are considering the gift of real estate now, you may want to consult with a financial
planner, CPA and estate attorney, to formulate the best possible plan for the future.
Every home purchase or sale is unique. If you’re looking for professional guidance, please feel free to reach out to me at 925-964-5010 or via email at Lisa.Hopkins@Compass.com. Even if you’re not planning to move and you’re simply curious about your home’s value, I’m happy to provide you with a custom analysis. Buying or selling, it’s never too early to start planning for success.
Written by Lisa Hopkins-Cochran
Lisa’s consultative and solutions based approach to real estate sales has been impressing her clients for 33 years. Lisa is an East Bay native and longtime resident of Danville, where she’s been involved in the community while raising her two children. Lisa takes pride in excellent communication skills, creativity, attention to details, and empathy, to provide the ultimate customer experience and successful transactions. Contact Lisa for “Service from the Heart.”
