Forget the toasters and champagne flutes: More engaged couples are doing a different type of wedding registry that allows them to collect cash for a down payment on a home, according to a recent article in The Washington Times.
Dana Ostomel, founder of Deposit a Gift in New York City, says that about 15 percent of their registries are to raise down-payment funds for a home and another 15 percent are for home-improvement funds to pay for upgrades like a new roof or furniture.
"Given that 75 percent of today's engaged couples already live together and are older, very often they are already established with the household basics that you find on a traditional registry," Ostomel said. "What they want is the gift of big-ticket items and longer term goals, like the gift of home ownership.”
The FHA permits gifts from a wedding to be used as a down payment, but lenders are required to document that the funds are gifts. About 27 percent of first-time home buyers use gift money from relatives and friends for a down payment, according to a 2010 National Association of REALTORS® Profile of Home Buyers and Sellers survey.
Source: “Registries Raise Cash Gifts, Avoid Etiquette No-No,” The Washington Times (Oct. 20, 2011)
In the past, it was considered in bad taste to ask for money instead of the traditional registry items like china, silverware, etc. However, in recent years it has become more common to see a note asking to forgo gifts and give cold hard cash. Considering that today's couples are getting married when they are older and more established, they likely have at least one toaster and coffee maker. Why ask for more of the same? The idea of asking for money to use towards an investment such as a house (whether it is to purchase a new home, make repairs, or accumulate rental property) is a sound decision. But could you buck the long-standing rules of etiquette and ask for money on your big day?
