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!
The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Greater Vancouver REALTORS® (GVR), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the GVR, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the GVR, the FVREB or the CADREB.