Affluent Father’s Homebuying Proposal Split His Family, but Market Fluctuations Soon Revealed Who Benefited Most.
In the face of a volatile housing market, the Original Poster (OP), a self-made affluent individual, attempts to assist his children in buying their homes with an equity-based proposal, sparking a family conflict. As the market wildly fluctuates, each decision’s consequences ripple through their lives, leading to a climax that shakes their familial bonds and financial stability.
A Thrifty Lifestyle
OP has built a comfortable financial status for himself through hard work and earning over $200,000 annually. Despite his wealth, he opts to spend his money on hobbies such as restoring old cars. However, an unexpected proposition comes his way from his adult children.
The Dilemma
OP’s children, having completed university and now working, encounter difficulty buying their own homes due to the skyrocketing housing market. Their predicament sparks a controversial idea: they approach their father, asking him to contribute financially to their pursuit of homeownership.
The Proposal
OP deliberates and proposes a plan: He will lend them the necessary money in exchange for equity in the house. This means that if he contributes 25% of the purchase price, he would own 25% of the property.
The Daughter’s Denial
His daughter, outraged by his terms, criticizes OP’s method, calling him an “a******” for not providing the money as a gift or at least an interest-free loan. She views his approach as unjust and exploitative, further straining their relationship.
The Son’s Decision
Contrarily, OP’s son sees the advantage in his father’s offer and decides to accept it. Along with his partner’s savings and a first-time home buyers program, they amass a substantial down payment, acquiring a moderately priced house. This decision, however, widens the rift between the siblings.
The Daughter’s Independent Stance
Feeling slighted, OP’s daughter declares her intention to buy a condo she can afford on her own without any assistance from her father. She views this as a dignified response to what she perceives as an unjust situation.
A Crack in the Family
Their distinct decisions create tension within the family, forcing OP into a difficult position. He must manage the split sentiments, striving to maintain balance in his relationships with his children. This ordeal introduces another layer of complexity to their dynamic.
Unexpected Market Turn
Suddenly, the housing market takes an unexpected turn, sending prices skyward. OP’s son, having bought his home already, finds himself in a beneficial position. On the other hand, the daughter’s plan to buy a condo is jeopardized.
The Son’s Fortune
The son’s property value surges due to the market upturn, enhancing the worth of his investment and thereby indirectly benefiting OP too. This situation vindicates the son’s choice and OP’s proposal, though it further irritates the daughter.
The Daughter’s Struggle
With the increased housing prices, the daughter struggles to find a condo within her budget. Her independence comes at a high cost, and her decision to refuse OP’s offer seems to backfire.
Resolution in Sight
Despite the tensions between OP and his daughter, the family begins to find common ground. The initial bitterness starts to fade, and OP focuses on trying to explain his position to his daughter.
The Daughter’s New Path
OP’s daughter still is unhappy about the situation and believes OP is “taking advantage” of his children and believe the father should not ask for a percent equity despite putting up the money. She is resolved to buy a home without her father, even if it’s somewhat smaller than what she wants longer-term.
Was The Father’s Behavior Appropriate?
The readers in the forum had a lot of mixed views on the matter. Here are some of their responses:
Forum Responded
One reader said, “Your loan is more of an investment and needs to be treated as such, which makes you an a**. If you have a 25% stake in the house and expect a 25% return without paying for upkeep, property insurance, property taxes, improvements, maintenance, etc. This makes you more of a loan shark than a parent. If you want to be equitable, then you would consider paying 25% of all those things.”
Another Commenter Thinks
Another responder wrote: “Without the parent’s money, they couldn’t put 50% down and most likely would be outbid by someone who could put 40% down. They literally need this money to buy the house they want. They can so no, like it seems the daughter is doing. But where I live, houses are going for 90k above the asking price, or people are offering 600k cash. A 200k assist is a huge boost.”
A Third View on The Story
A different person states, “You are saying it’s a loan, but then you are also saying it’s an investment. You can’t have it both ways.
Don’t act like you are lending your kids money when really you are just investing in real estate.”
A Final Perspective on the Matter
Another viewpoint on the story: “You made an offer. She didn’t like it, so she didn’t take it and used her own money to buy a place of her own.”
What Do You Think?
What are your thoughts on their actions?
What would you have done in this situation?
This story is inspired by a Reddit thread.
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