The Des Moines Register reports that homes sold for all cash, verses those who used traditional financing, increased to 22% of home sales in Des Moines this year. Cash buyers are often investors purchasing inexpensive properties for an investment. However, more parents are helping their grown children purchase a home by fronting the money for the house.

Low rates of return on certificates of deposit and similar investments is one reason for the trend. Many parents consider loaning their children the money they need to buy a home as a win-win investment opportunity for them and their children. They reap a higher rate of return secured by a property purchased in a buyer’s market, and their children are able to break into the housing market and start building equity.

In the words of a father interviewed for the article, “You can rent and waste money, or you can buy and wake up in 20 years and find your home is mostly paid for.” We would love to hear what you think. Visit our comment area below.

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Post by Tabitha Zesch, Relocation Director