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cover of episode Rent vs. Buy: Can Down Payment Help from Family Tip the Scales?

Rent vs. Buy: Can Down Payment Help from Family Tip the Scales?

2024/11/18
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The Money with Katie Show

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Rich Girl Lauren considers whether to accept her parents' offer of a down payment for a home, weighing the financial implications and opportunity costs.
  • Lauren's rent is $2,100 per month, and she earns $130,000 per year.
  • Her parents offer $200,000 for a down payment, but she must pay it back.
  • Buying a home would increase her monthly housing payment to $6,100, but she would house hack with a partner.
  • After 14 years, renting and investing the difference could yield $150,000, but buying could result in a net gain of $247,000.

Shownotes Transcript

Rich Girl Lauren lives in an expensive city, and her parents are offering her some money—but she only gets the money as a down payment for a home and she’ll have to pay it back eventually. Is it worth it? And separately, how are home buyers affected by the recent NAR agreement?

We are not licensed professionals; please do your own due diligence.

Rich Girl Roundup is Money with Katie's weekly segment where Katie and her Executive Producer Henah answer your burning money questions. Each month, we'll put out a call for questions on her Instagram (@moneywithkatie). New episodes every week.

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Transcript, show resources, production credits, and more can be found at: https://moneywithkatie.com/down-payment-help).

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