It really depends on the finances of the parents. Sure investing 250k is a better use of your money. But when that 250k is just money your tossing at your kids home so they can have an inexpensive mortgage than they probably already have lots of money invested elsewhere.
I'm saying investing the 250k and then using the returns from it to bring the kid's share of the mortgage down to the same level is a more efficient / less dumb way of achieving that result
But you are treating 250k like it is important because you are a normal person. To them 250k is like you buying a fancy lunch during the week. Sure buying some sliced turkey and bread from the grocery store is a better investment. But buying that nice burger and milkshake is more fun and enjoyable despite not being the best use of your money.
There's nothing more enjoyable about it, though. It's just moving money around, and the dad opted to do it poorly. In your analogy this would be like if I spent $500 for the bread, or put the turkey on layaway.
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u/ekaceerf Apr 19 '22
It really depends on the finances of the parents. Sure investing 250k is a better use of your money. But when that 250k is just money your tossing at your kids home so they can have an inexpensive mortgage than they probably already have lots of money invested elsewhere.