[‎‎‎‎‎‎‎‎‎USER]

Hi! I’m in my mid forties, husband is in mid fifties. Our retirement is more or less funded at this point, no debt, we live below to within our means, yearly income about 150k.

My question is this: what is the best way to save money to gift our kids their own house?

We anticipate working another 10-15 years at 100-100k annual income.

We have three kids and our sights set on 3 specific homes, each about $250k worth today. Moderate COL area.

How do we go about it?

Thanks!

[Denise]

Buy the houses now rent them out of course only if the rent exceeds mortgage and expenses. then gift to children later.

You will gain equity in the property in time.

It’s a long term strategy for building generational wealth

[Purdy]

Instead of leaving too much for my kid I am paying for his higher education upto an MBA.

I have asked for some fiscal responsibility and asking for tax awareness.

[Amanda]

Why not just buy a house or two now? We bought a few in the area that we’re planning on gifting to my mom and maybe our kids, depending on future situations.

If they dont want those particular houses, they would have at least doubled, tripled, or more in equity

[Jule]

Give them the cash and let them choose their own homes. Don’t try to buy something now to rent or anything like that.

It will be a chore for some of them, and they may feel tied down.

Keep it simple.

[Bethany]

Put it in an HYSA if you plan on gifting it within the next 3-4 years, otherwise consider an SP 500 index fund.

They’ll need 3.5 percent down for a primary residence. Can be up to four units as long as they live in one unit.

Having a multi-family home as a first home is a powerful way to build wealth.

[Grantly]

I’d gift them money each year to the maximum allowable under current tax law.

Make sure they know to put it in CD’s or investment accounts- not spend it on consumption

[Olga]

If I you buy three homes, treat them as diversification of your investment portfolio, not necessarily as a place your kids will need to settle in.

They may choose a different location or lifestyle. Make sure those homes are in an easy to rent area.

Teach kids how to run rental properties and let them decide how they use the proceeds.

If they are desperate for housing, they can live there.

Otherwise, they can reinvest rental income or use it to fund their own house purchase.

[Author]

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