The boomerang generation – a title freely used to describe most people who were born in the late 80′s and early 90′s, who are now in their 20′s, have gone to college or university, then moved straight back home. One of the main causes of this ‘boomerang generation’ phenomenon are the lack of available jobs in combination with the lack of affordable housing to these young people, who generally go broke from paying for school to get a degree that didn’t even earn them a job after-all…it’s a vicious cycle to say the least.
How do we break this cycle that’s causing such a distinct divide in the availability of social opportunities for our children? By sticking out our hands and helping our kids off the ground. It’s not really their fault they can’t afford a house or a car or their education…our generation sort of made it that way. We’re the ones with all the jobs and houses, so it’s no wonder there isn’t any room to share with our kids, unless we initiate their launch into the spectrum of social and financial responsibility.
Most of these boomerang victims are working enough to afford to pay rent, so instead of letting them continue to walk down the never-ending path of dissipating rent money, why not fork out for a down-payment for their first home? It sounds crazy, and it sounds like a lot of money, we get that, but when you look objectively at what it is – an investment – then there’s no need to panic. Position your family into a more financially stable and achievable situation by securely investing your money (especially with the market barely starting to recover from being bottomed-out), while pushing your kid into the real world by putting their name on the deed to a house and initiating the responsibility of mortgage payments to benefit their credit rating and social standing. After all, if you left it up to them to come up with a down-payment, let’s face it, they’re just going to hang around and wait for their inheritance, and nobody likes the sound of that.
A way to take this step even further would be to make the same investment if your “kid” is going to school abroad. Regardless of where they’re going, this same secure investment can be made to benefit both of your finances. They’ll be guaranteed a stable place to live throughout the course of their schooling while you make a secure investment. The reason this is a secure window of time for the property’s value to raise to achieve profit on the re-sale once they return home from school with a pristine degree in their hands, is that their schooling can take anywhere from 4 to 10 years (or more) to complete, depending on the degree. Considering the current market prices, don’t think too much about it and just make the investment! The market’s about as close to bottoming out as it’s going to get, so the time’s never been better to take advantage of the next few years of growth and cash in, and to give your kid a fighting chance at entering ‘the real world’.
article courtesy of enviromint
image courtesy of jollyjump