4 ms·
Are intergenerational wealth transfers the primary means to down payments across the Bay Area or the US? The latter doesn't comport with my friends experience,
by bkohlmann 10y ago
Are intergenerational wealth transfers the primary means to down payments across the Bay Area or the US? The latter doesn't comport with my friends experience, but I'm always easily persuaded by hard data. Any references?
- jra6 10y agoThe hard data is piss poor. It's largely self-reported data collected by media agencies. Just google "Bank of Mom and Dad", there are lots of poorly done studies. This one is okay: http://paa2005.princeton.edu/papers/51443 http://paa2005.princeton.edu/papers/51443 The reason it's poor is because everyone has an incentive (bank, broker, parents, you) to under-report the parental funds. Parents send the gift money in advance (3 months to be exact), banks look the other way to meet equity requirements and the transaction takes place.