3 ms·

Maybe we’re talking about different demographics? This is true of trust fund kids, but there’s a huge range of parental support. Most people I know have moving

Maybe we’re talking about different demographics? This is true of trust fund kids, but there’s a huge range of parental support. Most people I know have moving home as a safety net for homelessness, but they would be waiting until their parents die at 90 to get their first house if they were banking on inheritance. Edit: It occurred to me that’s probably my fault from saying “enormous parental safety net” which maybe does imply trust fund kids. I really meant “people who have any parental support at all”, which seemed to be the net the author was casting. Even top quintile probably isn’t “financially support my children forever” money, is it?

lumost 4y ago
With the direction housing is going relative to all other expenses, having a spare bedroom and a mortgage free home to inherit is becoming the equivalent of trust fund money. In Boston, The value per bedroom to be ~300-600k dollars depending on location. This value is appreciating at ~8-20% per year in the current environment. If this trend were to continue for 30 years, a parent owning a 2-bedroom stands to impart 5 million+ to the child inheriting that property. Obviously (hopefully), this trend can't continue - but having a free place to sleep is becoming a massive financial leg up. In many cases, this has become equivalent to the classic example of a "trust fund kid" from prior years. With most home owners earning money from their primary residence on paper for the last decade, simply providing the down payment for a child's home will yield a million dollar+ asset difference over 10 years compared to renting.