Keeping Our Kids Close To Home

It starts when your child is young ideally. The idea is to buy a rental property, something small, that will generate enough rental income to basically cover expenses. This will be your savings plan for your child. If the deposit money is yours, consider if you want to get this money back or gift it to your child. Either way, as your child grows, the mortgage is paid off, rents go up, and hopefully the value of the property increases.

On a personal note, I followed this scenario with both my children. My oldest son used his money to help fund 10 years of University, and to buy a property in the Kootenays. My younger son started with $16,000 of his own money and purchased first under my name in Burnaby. He was 12. At 16 he purchased again in the same building. Both were 2 bedroom suites. His first apartment was paid off when he was 20, and he used the equity to buy in North Vancouver-first a bachelor suite and then a new one bedroom at Orizon. He has now sold Orizon and the 2 apartments in Burnaby, and is buying a 2 bedroom condo in Olympic Village. He is 27. 

My son did not have much income, but birthday, christmas and babysitting money went against the mortgage. It shows that starting young helps immeasurably over time to build equity and a solid base for the future. I myself bought my first home in my late 20s, and stretched to buy an old house by the ocean in Deep Cove. By buying a home I was able to circumvent the step by step process of buying a condo, then a townhouse, then a home. But I had to put in a foundation and redo the roof. Sweat equity is a great way to get ahead over time.

The important thing to remember is to buy where you want to live if its your home. As an investment, buy where the rents are good and purchase price low.

Hope these ideas of helping your kids stay in the neighbourhood they grew up in gives you food for thought. If they are already older, possibly a help with their down payment will get them started. 

If you want to chat about about ideas that may help you and your family get started, I am always here to help.