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CATHERINE REAGOR REAL ESTATE
Bank of Mom and Dad Tips for parents who are looking to help their child buy a home ALEX VEIGA
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ASSOCIATED PRESS
Rising prices and a dearth of homes for sale in many markets have made it harder for many looking to buy their first home. One of the biggest obstacles many are facing is saving up for a down payment, particularly in hotter markets where competition for the more affordable homes can quickly drive up prices and put pressure on buyers to bring more cash up front. That trend is prompting many parents to step in, some opening their wallets, others welcoming their adult children to live with them again temporarily while they save money or pay down debt. Some 13 percent of parents with children 20-38 helped their child buy a home in the past five years, according to a survey conducted by GfK Custom Research North America for lender loanDepot. Of those, 65 percent contributed the down payment and 24 percent assisted with closing costs. The survey, which was conducted in February, included responses from 1,000 parents and has a margin of error of 3 percent. Whether it’s a cash gift or another form of aid, it pays for parents to consider how to best aid their children without placing their own financial well-being at risk. Here are some factors parents should weigh when helping their children buy a home: Parents may be tempted to pitch in financially to help get their children into their first home, but they shouldn’t do so before ensuring they can afford to live without the funds. This is particularly important if See TIPS, Page 3R PHOTO ILLUSTRATION BY ALIYA MOOD/THE REPUBLIC
10 things behind Valley home values The booms and busts of metro Phoenix’s housing market have yielded a wild ride for homeowners and the area’s economy. I started covering the region’s realestate industry almost two decades ago, as it was still recovering from the 1990 crash. Trends and characters in the housing market, one of Arizona’s biggest industries, have surprised, delighted, disappointed and angered me over years. It’s a good time to reflect. The Valley’s housing market is showing renewed signs of recovering from the last crash. And The Arizona Republic is publishing its most sweeping analysis with the latest Valley Home Values special section on real estate. My top 10 list of events and players that have steered and shaped Valley’s housing market — from worst to best.  No. 10: Bad loans Big lenders and Wall Street pushed risky, high-cost subprime mortgages during the most recent boom. Most borrowers didn’t have a chance of affording the payments, so the loans were doomed for foreclosure. These corporate giants started the boom and inevitable bust in metro Phoenix and other high-growth areas, and then took government bailout money during the recession.  No. 9: Speculators Investors, many inexperienced and from out of state, began buying houses with loans that required little to no money down in 2004. When prices started to fall a few years later, most of these speculators walked away from the houses and loans. During 2005, at least one out of every four homes sold in the area was bought by investors, many of whom lied on loan documents about how many houses they were buying.  No. 8: Cash-back deals A wave of mortgage fraud that involved inflating home values and led to many foreclosures started in metro Phoenix. The scheme revolved around speculators flipping houses amongst themselves every few months during 2006-07, and taking cash out of each deal. The monthly 5 to 10 percent jump in Phoenix home prices and lack of regulation among the state’s loan officers allowed this scam to work. Arizona ranked on the FBI’s top 5 list of worst states for mortgage fraud because of cash-back deals. See REAGOR, Page 3R
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find your next place. SCOTTSDALE | 8261 East Del Cadena Drive | Open Today 1-4PM
A RARE OPPORTUNITY to own in the prestigious Island at MLS# McCormick Ranch lake community. True European Villa floor Bedrooms plan wraps around pool and pavilion. All rooms feed from unique Bath gallery walk. Glorious windows from multiple levels. Custom Pool stained glass, incredible ceilings, skylights and stately Roman columns. Very special island kitchen has rich cabinetry and Sq. Ft. double wall ovens. Spectacular wet bar and striking brick wall Parking with fireplace. Sitting room master with fireplace and balcony. EnLot Size suite bedroom with terrace for arriving visitors. Lushly landscaped ZIP Code yard has an inviting pool, spa and impressive dining pavilion with fireplace and barbeque. New roof. A must see custom creation! Online Pics – Joseph Callaway Price
Brought to you by Those Callaways Luxury Circle, (480) 596-5751
- 5267453 -4 -4 - Yes - 3,911 - 3-Car Garage - 11,536 sq. ft. - 85258 - ThoseCallaways.com - $985,000
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GILBERT | 7270 South Beach Blvd. | Open Today 1-5PM
LUXURIOUS LAKEFRONT HOME WITH PRIVATE SANDY MLS# BEACH AND BOAT DOCK. Blessed with a to-die-for lakefront Bedrooms lot, this sumptuous home wows with a private sandy beach where Bath you can enjoy waterskiing, boating and plenty of carefree relaxing Pool in an oasis-like setting. Spectacular great room with handsome hardwood floors, surround of clerestory windows, floor-to-ceiling Sq. Ft. fireplace column, towering ceiling dressed with rich wood beams. ZIP Code Superb chef’s kitchen. Luxurious master retreat with disappearing doors to alfresco amenities. Game room, media room, office. Lush Online Pics Price lawns, inviting patios. Heated hot tub. Olympic-size infinity-edge lap pool. Beach and boat dock. Six-car garage. Visit tourfactory. com/1321949. See inside for details and directions.
Brought to you by Sandra Baldwin, Russ Lyon Sotheby’s International Realty
- 5256961 -6 -7 - Yes - 7,005 - 85298 - BaldwinTeam.com - $2,145,000
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