I know parents, the first big purchase your children want when they graduate high school is a brand new car. I understand, trust me. When I was a teenager (glad I am a was one) the first thing I wanted was a car and Lord and behold that is exactly what I received. It was not a brand new car, but it was drivable and I loved every second of it. But over 10 years later I ask myself, "Why didn't I ask for a house?" If I had, the house by now would have been able to buy me a brand new car, cover trips or generate passive income. A house purchased 10 years ago would have much more appreciation than that car would have ever had. In fact the car I had 10 years ago is probably worth about $500 now as oppose to the equity I would have in the house.
Parents I know your children are requesting cars but I really want you to reconsider. Imagine this, you purchase a brand new 2017 Honda Accord $20k vs purchasing a home for $120k. Ten years from now you'd be paying on a car not even worth the note you're paying and the 120k would have probably gained 20k in equity. Or if your children are going off to college and you purchase a 120K 2-3 bedroom home guess what, they can rent out the other two rooms to their college buddies and it'll cover the mortgage and maybe even leave them with some spending money and keep them out of your bank account.
I really want you to reconsider your Graduation Gift and when you've made the decision to BUY YOUR CHILD A HOUSE... CALL THE SHANITA HOLLOWAY REALTY TEAM at 832.382.4579 or Email us; Shanita@ShanitaHolloway.com