Granted the ability to buy a place for your children as they head off to College or University is not for everyone, but for some people it is a great way to launch their kids and make sure they do not come back.
Depending on where they go to do their post secondary education it can often make financial sense to buy something. If they were going to stay home anyway and everyone is happy then maybe this is not for you.
If your student is heading off to a new town then it is time to consider the cost of a down payment and a mortgage relative to the cost of being in residence, or if you were planning to help them get started anyway then why not now. When they graduate they can either run it as a rental property or they can sell it and use the proceeds to buy their next home, if they have decided where they want to set down roots.
Owning a place can help build a sense of responsibility; managing a roommate and rental obligations can teach even more.
If you have 2 students going to the same University or College then it really does make a lot of sense from almost every angle.
Things to consider.
* Housing market in the city or town where they will be located.
* Term of the mortgage
* Rental rates
* Portion of mortgage payment that goes to principal (this is a form of savings)
And more, if you want to discuss your options then please feel free to call. I would be happy to go through your options with you and help you think through whether this is the right step for your family.
Monday, March 25, 2013
Monday, March 18, 2013
More People to Please when buying a home?
How to juggle family opinion when buying your first home
These days, many first time home buyers are juggling a lot more than their finances. They have to deal with the challenge of well-meaning, but unwanted opinion. Why? Real estate agents agree that with down payments and closing costs increasing, more than ever before, young adults look to their parents for financial help. — As, so does the need for financial assistance from family members. This leads to a greater involvement in the house-hunting process, and new home buyers soon discover that their family members bring along their own opinions in addition to their cash. But when the young buyers' dream home ideals clash with the older generations' vision, both parties must do a balancing act.
“Satisfying both tastes is key,” explains Claudine Montanoa real estate agent on W Network's reality series My House Your Money. “For young adults looking in the urban city, I stage the place to appeal with a modern contemporary look for the young professional—sleek and modern, bold and intense in terms of paint, furniture and décor.”
When extended family members come along, the presentation certainly changes. “To appeal to young adults and their parents, it has to feel modern, but traditional as well. The look is not as bold in terms of paint and décor, but has a more relaxed, cosy feel with softer furnishings throughout, so both age groups can connect with the space.”
Having been through the process previously, parents tend to be much more critical in home purchasing and are a bigger challenge to delight. “The young couple is usually more excited, and focus on the things on their wish-list they are getting. In fact, they are excited to just purchase something they can call their own,” adds Montano.
When it comes down to it, winning this war is easier than imagined for the new home buyers, says fellow My House Your Money real estate agent, Helene Baguley. “Most parents or extended family members, even if they are providing the down payment, want to see their kids happy at all costs.”
Source: News Canada
These days, many first time home buyers are juggling a lot more than their finances. They have to deal with the challenge of well-meaning, but unwanted opinion. Why? Real estate agents agree that with down payments and closing costs increasing, more than ever before, young adults look to their parents for financial help. — As, so does the need for financial assistance from family members. This leads to a greater involvement in the house-hunting process, and new home buyers soon discover that their family members bring along their own opinions in addition to their cash. But when the young buyers' dream home ideals clash with the older generations' vision, both parties must do a balancing act.
“Satisfying both tastes is key,” explains Claudine Montanoa real estate agent on W Network's reality series My House Your Money. “For young adults looking in the urban city, I stage the place to appeal with a modern contemporary look for the young professional—sleek and modern, bold and intense in terms of paint, furniture and décor.”
When extended family members come along, the presentation certainly changes. “To appeal to young adults and their parents, it has to feel modern, but traditional as well. The look is not as bold in terms of paint and décor, but has a more relaxed, cosy feel with softer furnishings throughout, so both age groups can connect with the space.”
Having been through the process previously, parents tend to be much more critical in home purchasing and are a bigger challenge to delight. “The young couple is usually more excited, and focus on the things on their wish-list they are getting. In fact, they are excited to just purchase something they can call their own,” adds Montano.
When it comes down to it, winning this war is easier than imagined for the new home buyers, says fellow My House Your Money real estate agent, Helene Baguley. “Most parents or extended family members, even if they are providing the down payment, want to see their kids happy at all costs.”
Source: News Canada
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