Fifteen ways to leave your mother
How to help the kids buy their first home
If your kids are digital kids, between the ages of 18-26 or Generation Xers heading into their 30s, they may be thinking about settling down or buying a home for an investment. If they don't have a down payment, take note. Show them these tips and within a short while, they will.
- Are they celebrating a birthday? How about an important holiday? Why not set up a down payment account? Then let mom, dad, grandma, older siblings and anyone else who usually buys gifts, write a cheque instead.
- How your clients recently accomplished something important like getting good grades on a college course? Let relatives and friends know and tell them about the down payment account.
- Have your clients been thinking about setting a wedding date? Families and friends love weddings and always want to know what to give as gifts. Mention the down payment account.
- If your clients are fed up with the clutter in their apartments, encourage them to hold a sidewalk or garage sale and put the proceeds into an account.
- Make their own. Breakfast, lunch, dinner, coffee — eating out is expensive. Have your clients keep track for a week and then start making their own. They'll be surprised at how quickly the savings add up.
- Onside with the government. If your clients have RRSPs they can use up to $20,000 each for a down payment under the Home Buyers Plan. That's $40,000 per couple.
- First-timer rebates. In BC, the property transfer tax is 1% of the first $200,000 and two percent of the remainder — but first-timers are exempt.
- Downscale. If your clients have a one-bedroom apartment in a high-rent neighbourhood, have then consider switching to a bachelor suite. Saving just $300 a month will add up to a down payment within a year.
- One plus. Ask your client to consider buying with a sibling. They were roommates together all through childhood, so they know what you're getting into.
- Two can live cheaper. What about buying with a close friend? Make sure they spell out the fine print.
- The more the merrier. Consider a larger property. Find the home your client wants and have them buy it as a group. Again, spell out the fine print.
- Stay home. If your client is single or living with their parents and have them consider buying a home and renting it out as an investment?
- Tell your client to lower their expectations. Instead of a five-bedroom home, they could consider starting with a two-bedroom condominium.
- Everyone wants to live in the best of the best. But if they can't afford it, show them homes for sale in lower-priced neighbourhoods.
- Handy? Find them a home in need of tender care and away they go! Get an inspection first so they know exactly what repairs are needed.
Source: REBGV