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How To Give Your Kids A Helping Hand In Buying A Home

QCan I buy a house for my adult child? How can I assist them to achieve home ownership?

As a parent, it is natural to want the best for your children including wanting them to have a home to call their own. Young adults are often challenged when buying their first property because of high housing prices and tighter lending standards. Students sometimes have difficulty finding an appropriate house to rent near campus. More and more I am working with parents who are supporting their adult children by helping them purchase real estate. Here are a few ways you can give them a helping hand on their way to home ownership.

A Gift Of Money

Many parents prefer to transfer their wealth to their children when their incomes are lower and costs to raise a family are higher than to make them wait for an inheritance when they are older. Some parents choose to provide the downpayment or top it up to reduce monthly mortgage payments or avoid CMHC surcharges. Keep in mind that the funds will need to be in your child’s account a few weeks before closing day. Also, the lender may require a letter outlining where the money is coming from and that it is a gift.

Sell Your Current Home To The Kids

If you are planning on downsizing and your children want to keep the homestead in the family this might be a good option. You can sell your home to your children at a discounted price.

Buy A Home And Rent It To Your Children

In this scenario, you get to expand your investment portfolio while helping your kids at the same time. Make sure to set out expectations clearly and do it in writing to avoid strife in your relationship.

CO-SIGN THE MORTGAGE

You don’t just take on the liability, you take on the asset too. But remember the risks. The entire loan will become your responsibility if they do not make payments, it can impact your credit rating, and it may affect your ability to borrow from lenders.

PAY FOR CLOSING COSTS, EXTRA FEES, AND THE DEPOSIT

There are legal fees, moving fees, cleaning expenses, and renovation costs that you can assist your child with. Another way to help is to provide the deposit required if your child’s money is not liquid and available when an offer to purchase is made.

Guidance And Moral Support

There are lots of ways you can assist without making a withdrawal from the bank of Mom & Dad! Suggesting a real estate agent that you trust, lending a hand with moving, doing some minor repairs around the new place or sharing your knowledge of the process are all wonderful ways to contribute to their success. This is an exciting time for your children so remember you are there to support, not steer the ship.

Whatever you decide, make sure to carefully consider the legal and financial implications. Lay out your expectations and how you expect to be involved in the process. Do it in writing to avoid personal distress between you, and lastly, make sure you can afford to help out.

ARE YOU READY TO SUPPORT YOUR CHILD’S JOURNEY TO HOME OWNERSHIP?

LET’S CONNECT AND SET UP AN ACTION PLAN!

WEST SPRINGS | $259,000

#111

Maintenance free living at a great price! Enjoy the proximity of restaurants, markets, boutiques and services in nearby West 85th and Aspen Landing. This one bedroom, one bathroom unit in West Springs is ideal for a first time buyer or a real estate investor looking to add to their rental portfolio. The clean, modern interior features an open concept kitchen and living room with 9 foot ceilings and easy-to-care-for luxury vinyl tile flooring. The efficient kitchen has stainless steel appliances, contemporary subway tile backsplash, a pantry, and quartz countertops. Access the main floor patio from the living room where you can enjoy warm summer days. The bedroom is connected to the 4-piece ensuite and has views out to the patio. This unit has an in-suite stacked washer dryer, one titled heated underground parking stall that offers direct access to the unit, and bike storage in the parkade. Public transit is nearby making it easy to get into the downtown core or universities. This property offers great value and a fantastic location with amenities at your fingertips!

SOUTH CALGARY | $595,000

#407

Introducing the perfect urban retreat in the heart of Marda Loop - a stunning 2 bedroom, 3 bathroom top floor condo spanning over 1080 square feet. This stylish unit is the epitome of chic city living, featuring a wall of windows that spans the length of the open concept living, dining, and kitchen area. The sleek kitchen boasts modern cabinetry, a pantry, quartz countertops, and stainless appliances. Enjoy cocktails on your private rooftop patio overlooking the landscaped courtyard before heading out for a night on the town. The primary bedroom contains a walk-in closet and ensuite with dual sinks and a large shower. At the opposite end of the unit is the second bedroom with its own walk-in closet and ensuite. The den is an ideal spot for a home office or yoga retreat. Additional conveniences include a/c, 2 underground parking stalls, a storage locker, pet wash, bike room, and lobby. This condo is a great fit for a first time buyer or student who want to share with a roommate. Don’t miss out on this rare opportunity to own a piece of the vibrant Marda Loop community!

ALTADORE |

2110

Inspired by the brownstones of New York City, this townhouse has a gorgeous brick exterior and is located on the West corner of the property. The open concept main floor with 10’ ceilings and wide plank hardwood floors features a classic white kitchen with quartz counters, subway tile and stainless steel appliances, a large dining room with ample storage for dinnerware, and a living room fireplace clad in black marble. Dine al fresco on the outdoor patio off the dining room. Upstairs, the primary bedroom contains a walk-in closet and timeless ensuite. A second bedroom, bathroom and laundry room round out this level. The third floor is a versatile space that can be used as home office, media room, or art studio and has a sunny south facing rooftop patio. A fully developed basement contains the third bedroom and bathroom, perfect for guests, and a family room for TV night. Additional conveniences include a single detached garage and air conditioning. This property combines classic design with modern amenities and is the perfect blend of luxury, convenience and comfort.