Will My Children Be Able to Afford a Home? <br/><br/>The achievement of homeownership for many has been a cornerstone of their <br/>financial stability. Many baby boomers have found themselves property 'rich' <br/>as property values have continued to skyrocket in the last five years. Although <br/>very thankful for their own good fortune, many baby boomers are now <br/>seriously concerned about the prospects of their children ever being able to <br/>afford to purchase a home. With the median sales price of a California home <br/>exceeding $550,000, less than 14% of all California households are able to <br/>qualify. The ability to qualify is based on the buyer coming in with a 20% <br/>down-payment, and using a 30 year fixed rate loan with current interest rates <br/>at or slightly above 6%. If the incomes of the offspring of the baby-boomer <br/>generation are analyzed separately, they are even less likely to be able to <br/>qualify. <br/><br/>The California Association of Realtors and the National Association of <br/>Realtors has identified Housing Affordability as one of the critical issues facing <br/>the industry. Many cities have, in response to calls for action, started working <br/>on policies to help make housing more affordable. The Homeownership <br/>Alliance, an alliance of varied industry trade association and non-profit <br/>associations, has published a survey of different programs across the country <br/>that have been acknowledged as providing workable solutions to this <br/>problem. Ultimately, the health of the real estate industry depends on the <br/>ability of buyers to buy, providing those who wish to sell the means to do so. <br/>The full report can be found at HomeownershipAlliance.com. <br/><br/>Baby boomers who want their children to enjoy the benefits of <br/>homeownership can assist their offspring by teaching them what it takes to <br/>own property. The sooner a parent is able to get their child started on such an <br/>investment, the more likely the success. There is hardly any better time than <br/>the present, if the capacity is there. Today's real estate environment has <br/>generated tremendous amounts of equity, and there is no one more capable <br/>than us to assist 'our' children in ensuring that they will be able to afford a <br/>home. Our children will generally see what we do successfully and will use <br/>that as an example of how to live their lives. This mentoring generally occurs <br/>subconsciously, and is even more powerful if conscious attention is paid to it. <br/>As a method of instruction, a parent could assist their adult child to purchase a <br/>property jointly with them, and assist them in the management of the property. <br/>In time, as they learn to handle the finances and management of the <br/>investment, a parental decision can be made to partition the gains. Eventually, <br/>the parent can help their children gain financial independence by making that <br/>decision to partition the gains, or by 'gifting' them their (the parent's) interest <br/>as a reward for the adult child's successful completion of the 'mentoring' <br/>program. <br/><br/>For more information on real estate futures visit http://www.nefcortez.com<br/><br/><a href='http://www.estreetloans.com/cgi-bin/teemz.cgi?board=_master&action=opentopic&topic=7&forum=Mortgage_Forum_at_Estreetloanscom'>Discuss this article in our Discussion Groups</a><br/><a href='http://www.estreetloans.com/request.jsp'>Request Your California Mortgage - Click Here Now</a><br/><br/>