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How many of you parents hate this term?

News media and social media use it a lot these days. The expectation is that we have to help our kids if they want to buy property in the Lower Mainland. But it’s not true. If you are in a position to help, great. But we can also help our kids by teaching them the principles of planning, investing and saving.

We work with many young people out there achieving home ownership on their own and it’s not easy but very doable. So what can you do to help your child save and buy their own place one day?

1. Start early. Like anything, the earlier you start the better. Get the compounding effect working in your favour as soon as possible.

2. Start talking about a savings plan as soon as they get a part time job and help them put one in place. This can be as simple as automatic withdrawals off every pay cheque into a savings account like a TFSA. It could also mean looking at insurance policies that can be cashed out for a down payment later.

3. Talk about expectations. Beginning with a small achievable condo is going to create the opportunity to buy a palace later. The term “you gotta start somewhere” is important!

If you have older “kids” still living with you, all the above still applies. They can add First Time Home Buyer Programs to their savings plan to speed up their path to ownership.

If they use the first time home buyer RRSP savings plan in combination with the First Home Savings Account program, they'll be on track to save $75,000 in 5 years (assuming they save the max allowable under the program).

If you would like any further details or help with creating a plan, reach out!

But you should TRY.

You might not be able to afford the home you want right now. Interest rates and the amount that you qualify for might be holding you back.

Say you DO go ahead and buy real estate right now.

There are three reasons this could work out in your favor:

1. Prices are negotiable right now because we have less demand.

2. The price you pay today remains the price. The monthly mortgage payment changes based on interest rates and principal owing. You can stay locked in on a rate or choose a shorter term higher rate in the hopes of moving into a lower rate later.

3. Buying at a lower point in the market means you are better positioned to gain equity. This equity will give you a chance to buy something that better fits exactly what you want later. A step in the right direction leads to another step in the right direction.

Now say you DO NOT.

Here are three reasons it could work against you:

1. When interest rates go down there'll be more people willing and able to buy. You'll get to compete with them.

2. Paying a higher price later means you miss out on equity building that buying low makes possible.

3. If you can't afford what you want today, what are the chances that when prices rise, you'll be able to afford it then?

So there you have it - DO or DO NOT. But if you Don’t, you probably Won’t.

The market is always good! The real question is if it is the right time for you?

The stats below are always up to date but if you want a specific question answered please reach out and we can find data to help you make a good decision.

Data is for the Greater Vancouver Real Estate Board and Represents Detached Homes:

Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months. - From the Greater Vancouver Real Estate Board