Buying a property in New York City isn't getting cheaper any day soon. As you start considering your first apartment purchase, you might come to the realization that you need some financial help from your parents.
There's absolutely nothing wrong in asking your parents for help. You likely want to stop flushing money down the toilet in rent and start getting all the amazing benefits associated with apartment ownership. And your parents likely want to see you start climbing the property ladder and start paying a mortgage instead of paying your landlord.
It's important to note that financial help from your parents can come in many different forms, so you'll want to have a discussion with them to best understand the way forward to apartment ownership. Before we discuss how you might get assistance from your parents, let's discuss why you might want help from them.
Your Income is High but your Savings are Low
Maybe you've been working hard and climbing the job ladder to earn a hefty annual income. However, compared to the cost of living in NYC, you may still feel materially broke. You might have some money for a 20% downpayment, but you might quickly go back to having low liquidity once you're out that cash.
This is an opportune moment to involve your parents in a conversation about helping you purchase your first NYC apartment. You've clearly shown that you're diligent and hardworking, but it's time to upgrade from your rental pad and start building some equity with your monthly payments. Connect with your parents and see if they wouldn't mind gifting or loaning you the money for the downpayment. You'll be responsible for the monthly payments, no different than paying your monthly rent, but you'll finally get the benefit of homeownership.
Your Income is Okay and your Savings are Low
By the country's standards, your income is likely through the roof. However, based on NYC standards, your income may still be too low to comfortably buy an apartment on your own without scrutiny from a lender or condo / co-op board. To help alleviate this level of scrutiny but still make buying your first apartment a reality, you might choose to co-purchase the apartment with your parents.
Co-purchasing means the apartment title and mortgage will be in the name of both you and your parents. While many buildings allow such an arrangement, it's important to note that not every building will let this fly. It's always essential that you disclose how you intend on structuring the ownership when you pass along an offer.
We Help you Buy an Apartment with your Parents
We specialize in helping homebuyers purchase properties with their parents. We've done it dozens of times and have helped parents and their children understand how to appropriately approach each unique purchase. We also have a network of lenders and real estate lawyers who are well-acquainted with this type of purchase structure.
Ready to get started? Don't hesitate to drop us a line or shoot us an email at firstname.lastname@example.org