How much did your parents help you towards your first home of your own?

[barkley]

Now I want to know what everyone paid for their houses.

1st home-built in 1961, we purchased in 1991. $130,000 at 11.5% interest felt like we were on the top of the world when interest rates dropped/property values went up a smidge a few years later and we were able to re-fi at 9% with no pmi.

Seriously.

Some of the amounts mentioned here aren't even a 2% down payment on a house where I live.

keep in mind how long ago some of the homes mentioned were purchased. the one i mention above is from 1991 and another factor (which with today's fuel prices likely couldn't be effectively utilized nor would i recommend it based on the toll it took on dh and i physically and mentally) was the common practice where we then lived (northern california) to buy in less expensive outlying communities but commute into areas with better wages. dh and i both had 90 mile round trip commutes (ran about 90 minutes each way depending on traffic) but it allowed us to buy a home that was at least 50% lower in price than the comps in safe neighborhoods around where we worked. no way we could do it today b/c beyond gas going through the roof the tolls we used to pay have increased by 600% (i estimate our daily commutes from those days would currently run us $465 per week not counting wear and tear on the vehicle).

 

[DLgal]

1st home-built in 1961, we purchased in 1991. $130,000 at 11.5% interest felt like we were on the top of the world when interest rates dropped/property values went up a smidge a few years later and we were able to re-fi at 9% with no pmi.


keep in mind how long ago some of the homes mentioned were purchased. the one i mention above is from 1991 and another factor (which with today's fuel prices likely couldn't be effectively utilized nor would i recommend it based on the toll it took on dh and i physically and mentally) was the common practice where we then lived (northern california) to buy in less expensive outlying communities but commute into areas with better wages. dh and i both had 90 mile round trip commutes (ran about 90 minutes each way depending on traffic) but it allowed us to buy a home that was at least 50% lower in price than the comps in safe neighborhoods around where we worked. no way we could do it today b/c beyond gas going through the roof the tolls we used to pay have increased by 600% (i estimate our daily commutes from those days would currently run us $465 per week not counting wear and tear on the vehicle).

I am aware. We moved from NJ to Northern CA in 1994. My dad moved a year ahead of us to buy a house WAY out. He worked in San Jose and they bought in Tracy. The house was $243,500 for 2450 sq feet.

They basically doubled their money when they sold it 10 years later for $475,000. By 2009, it was sold for $240,000. Today it's worth about $850,000.

Makes your head spin. My dad used to take a train of some sort at least part of the way (from Livermore?). Regardless, our neighborhood was about 90% people who worked in the bay area.

 

[tvguy]

I am aware. We moved from NJ to Northern CA in 1994. My dad moved a year ahead of us to buy a house WAY out. He worked in San Jose and they bought in Tracy. The house was $243,500 for 2450 sq feet.

They basically doubled their money when they sold it 10 years later for $475,000. By 2009, it was sold for $240,000. Today it's worth about $850,000.

Makes your head spin. My dad used to take a train of some sort at least part of the way (from Livermore?). Regardless, the town was about 90% people who worked in the bay area.

That would be the ACE train your dad took.

 

[DLgal]

That would be the ACE train your dad took.

Sounds familiar!

 

[barkley]

I am aware. We moved from NJ to Northern CA in 1994. My dad moved a year ahead of us to buy a house WAY out. He worked in San Jose and they bought in Tracy. The house was $243,500 for 2450 sq feet.

They basically doubled their money when they sold it 10 years later for $475,000. By 2009, it was sold for $240,000. Today it's worth about $850,000.

Makes your head spin. My dad used to take a train of some sort at least part of the way (from Livermore?). Regardless, our neighborhood was about 90% people who worked in the bay area.

it was the rare exception that someone i worked with actually lived nearby. we had people making insane commutes to afford homes. at the time the government agency i worked for paid the highest wages state wide for the classification i worked so as a result we would get applicants from all over the state when experienced level openings were posted. it never failed though-someone would come in all eager for a job interview but then after they ran the numbers on what housing would cost them they realized they were better off w/lower wages in a much lower cost of living area.

the house we subsequently bought in '99 cost us $192,000, we sold it in '06 for $619,000. by 2013 the person sold to lost it along with whomever bought it next. it sold at public auction for $93,000 today it's worth about $650,000. shows how hot and subsequent freezing cold housing markets can impact a homes value over time.

 

[Mackenzie Click-Mickelson]

it was the rare exception that someone i worked with actually lived nearby. we had people making insane commutes to afford homes. at the time the government agency i worked for paid the highest wages state wide for the classification i worked so as a result we would get applicants from all over the state when experienced level openings were posted. it never failed though-someone would come in all eager for a job interview but then after they ran the numbers on what housing would cost them they realized they were better off w/lower wages in a much lower cost of living area.

the house we subsequently bought in '99 cost us $192,000, we sold it in '06 for $619,000. by 2013 the person sold to lost it along with whomever bought it next. it sold at public auction for $93,000 today it's worth about $650,000. shows how hot and subsequent freezing cold housing markets can impact a homes value over time.

To be fair a comparison of the market is hard if a home is sold at an auction. That's not quite the same as surveying one's housing market over time.

A home sold for that little (based on what it cost when bought, when sold, when bought again and foreclosed on or some other fashion where the seller lost the home) was an attempt to recoup a balance not sell it for what it was "worth" in a normal housing market. At least IMO that wouldn't be a "shows how hot and subsequent freezing cold housing markets can be". If it literally sat there and sat there and sat there and no one bought it except for when it was priced at $93K I could totally see what you're talking about just the structure of a public auction means the sales prices are incomparable to the normal market.

 

[Mommy2cody]

My parents let us live with them (we did pay rent, not nearly what we were paying for our apartment tho.. we live in California lol) we stayed 2 years. Paid off every single bill we had and saved for a down payment. My parents gave us a $100.00 Lowes gift card as a house warming gift.

My husband's parents never purchased a home nor have they even been to ours to see it.. thats a different thread though.

 

[Lilsia]

I think it makes far more logical sense to gift money towards helping your children buy bricks and mortar, than spending money on a wedding. Homes are still standing, long after marriages fail.
I have no intention of paying for the wedding of either of my children.

I totally agree with this. It is insane the amount of money that people waste on basically a party. It is interesting how some people like to pick and choose what is acceptable for their parents to pay for as an adult, to me, it is all the same. College, wedding, money for the house, etc. I see no difference. If the parents can help their adult children in any way, I think that is great.

 

[mjkacmom]

J

I totally agree with this. It is insane the amount of money that people waste on basically a party. It is interesting how some people like to pick and choose what is acceptable for their parents to pay for as an adult, to me, it is all the same. College, wedding, money for the house, etc. I see no difference. If the parents can help their adult children in any way, I think that is great.

I agree, aren’t college students adults? Engaged couple are usually adults. Bought a home when we were 30, one child, another on the way, both of us in graduate school part time. Definitely felt like adults.

 

[DLgal]

I totally agree with this. It is insane the amount of money that people waste on basically a party. It is interesting how some people like to pick and choose what is acceptable for their parents to pay for as an adult, to me, it is all the same. College, wedding, money for the house, etc. I see no difference. If the parents can help their adult children in any way, I think that is great.

Our Disney Fairy Tale wedding cost $10k in 2001. We paid half and my parents paid half. That's all they had to give, honestly.

$5000 would have barely covered the security deposit and first month's rent at our first apartment, not to mention it wouldn't even come close to helping buy a home in So Cal (my husband's first duty station) back then.

I know SOME people spend insane amounts of money on weddings, but suggesting that the money would be better spent on a house is a weird thing to say.

 

[design_mom]

Directly: They didn't. That was up to us to take care of.

Indirectly: A lot. I was able to finish college without debt and get a good job after graduation. We were well-set for adult life.

 

[CyndiLouWho]

Because I was curious, I searched the city where I live and the least expensive single family house in Victoria, BC today is 1200sf, 3 br, 1 bath home that is listed for $750,000. The next lowest is a 2br, 1 bath for $765,000.

The least expensive 2 bedroom condo (1055sf) is $358,000 but has monthly condo fees of $497.33. The next least expensive is $369,000 (937sf) with monthly condo fees of $798.00!

To compare, we bought our 1100sf condo in 2005 for $190,000 and our condo fees were around $150/month.

Yes, that is an expensive starter home. The poster I quoted likely has starter homes as expensive as your example, just that 2000 sf is no starter to me.

 

[STJ]

They helped us paint and move in. My mother went shopping for home owning essentials with me. As far as financially? They did not.