InvestingMarkets & Economy

Is there something wrong when youth must rely on family cash to buy?

BOMAD isn't open for business everywhere
  • Not everyone can afford to borrow from BOMAD (Bank of Mom and Dad).
  • It seems perfectly reasonable that the parent and grandparent beneficiaries of increasing scarcity should pass on some of the winnings to offspring. And also that offspring would have a tougher and tougher time in the competition and require help.

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

From professional housing publications to worried social theorists and city councils, we have today a lot of justifiable hand-wringing about the plight of first-time homebuyers, millennials, renters, low-income, seniors -- all sorts of groups confronted with difficulty buying a home. The toughest single problem, ahead even of unstable “gig-employment:” where will buyers find their first down payment? The most common answer is delivered with derision or dismissal: the bank of Mom and Dad. Not everyone has parents with the wherewithal, or the willingness. And it’s not terribly pretty that affluent parents would perpetuate affluent offspring. No matter what the social issue, we here in the States usually think that we have it worst. Special, we are, if only in our search for equality of opportunity, if not outcome. Look elsewhere, outward. BOMAD This week the UK Telegraph reported results of a study by Legal & General Life Insurance. In the U.K. -- a land f...