boomers > Boomers Blog - Krista Hubbard, North County Real Estate Professional

Parents Are Buying Homes for Kids Priced Out of the Housing Market

parents buying houses > Boomers Blog - Krista Hubbard, North County Real Estate Professional

Adult children increasingly are looking to parents to help them buy homes. Some parents are co-signing a mortgage, giving money for a down payment, or buying the property outright. It's crucial assistance, given the high home prices and mortgage rates above 5%. Plus, real estate is increasingly being viewed as a hedge against inflation and a better option than paying rent. Some ultra-wealthy parents have sought financial planners' advice on buying homes for kids because of the increased gift and estate tax exemption. The Tax Cuts and Jobs Act doubled the amount Americans can pass on to heirs tax-free to about $12 million for individuals and $24 million for couples in 2022. That provision will sunset at the end of 2025 when the exemption is scheduled to be cut in half.

Senior Downsizing With Prop 60

prop 60 > Boomers Blog - Krista Hubbard, North County Real Estate Professional

Age is a funny thing. It creeps up on us and before we know it, we are over 55, our children are young adults living on their own, or trying to, and we are faced with empty rooms and stairs threatening our knees in our family homes.

For those of us who purchased our homes years ago, downsizing does not seem like a choice due to the high pricing in our current sellers’ market. We like our old tax base and the thought of adding to it frightens us all.  Fear not…Prop 60 (or 90 – if you are going to another county) has come to our rescue!

Read more ...Senior Downsizing With Prop 60

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