Young people are looking to take advantage of low interest rates by buying their first home during the pandemic. However, more than half of Americans who did so in 2020 admit family or friends helped them with the down payment.
All told, realtor.com says 44% of first-time buyers did not have enough for a down payment last year, many of whom were millennials hitting the age of 30.
“If parents are paying their cell phone bills, car payments and that sort of thing, then I would say they're in no position whatsoever to be taking on the responsibility of a house,” says relationship trainer Julie Nise.
Nise says friends and family who chip-in or even loan them money are enabling their already bloated sense of entitlement.
“There's nothing wrong with families helping in an appropriate way. The issue is far too many parents and extended family are helping otherwise not independent, not mature enough younger family members to do things they have no business doing.”
“To be a functional adult you need to be independent. You cannot be depending on anyone else for your income, for kissing your boo boos or anything else,” she says. “You have to be standing on your own two feet, paying your own bills, making your own way.”
Nise says all you've done is create a financial credit mess if these new homeowners fall behind or can't make payments.