Will My Kids Be Able to Afford a Home on Their Own?

Even if your children have grown up and are out on their own, as a parent, it’s only natural to want to help. 

As the cost of real estate in Vaughan and the Greater Toronto Area continues to go up, you may wonder if your children will miss out on their chance to have a home of their own. 

While the idea of helping your child buy something as big as a home may seem odd, It’s actually a lot more common than you may think. In fact, for some buyers, accepting financial help from a parent is the only way to get into the market. 

In this blog post, we’ll look at some of the obstacles that younger buyers are facing, and the creative ways parents can help them accomplish their real estate goals. 

New Reality For Today’s Buyers

It’s no secret that the cost of a home has been steadily escalating over the past few decades. As the years go by, the path to homeownership becomes increasingly difficult for every generation of buyers. 

Today, many young people, including those from the Millennial generation still fall short of being able to afford real estate – even with a traditionally strong income and years of savings. Unfortunately, as costs continue to rise, it’s not likely that this will change anytime soon. 

However, as more buyers have to get creative in order to afford a home, a handful of new solutions have slowly caught on – like seeking help from parents. 

Looking to buy a home? Find out what you can expect from the process with these helpful blog posts. 

• How to Buy a Home in Greater Toronto
• 5 Mistakes First-Time Home Buyers Make
• How to Write a Winning Offer Letter

Breaking Into the Market

With the high costs of buying, many young people are renting longer than they used to. While there are plenty of advantages to renting, it’s not always the best use of their hard-earned money. 

Homeownership is more than just a right of passage, it’s a roadmap for a strong financial future. Real estate is a valuable, tangible asset that will appreciate in worth over time. This means that your children will be able to sell it down the line and take advantage of all the equity they’ve built. When they rent, they’re essentially paying off their landlord’s mortgage instead of their own. 

How Parents Can Help

While today’s buyers are facing greater financial hurdles compared to generations past, there are ways for parents to help their children land their first home. Such as: 

Helping With a Downpayment 

Offering to Co-Sign

Providing an Interest-Free Loan

Helping With Closing & Moving Costs 

Keep in mind that everyone has different comfort levels and financial resources. If some of these options aren’t on the table for you, that’s totally ok. 

Buying As A Team

Helping a family member buy their first home is an incredible act of compassion and kindness. However, because money can be a sensitive subject, communication is an important part of the process. 

If you’re helping a child with their home purchase, you may wish to have some influence in their decision-making. As a family-led real estate team, we know how to help you navigate a collaborative buying process. Together, we’ll work toward a fantastic result that makes everyone happy. 

Building a budget is an essential part of buying a home. Explore these other posts from our blog for helpful tips on how to do just that. 

• How to Budget for Buying a Home in Vaughan
• What Are the Costs of Buying a Home in the GTA?
• 5 Reasons to Get Pre-Approved For a Mortgage Before Beginning Your Home Search

Our Buy Back Guarantee

Not only can our team guide you (and your family) through a smooth and enjoyable buying experience, but we’ll also ensure your children find a great home that they love. A home is one of the biggest purchases people make in their lifetime, the last thing we want is for someone to buy a home and end up less-than-thrilled with it after moving in. 

Our Buy Back Guarantee takes this risk out of the equation. Here’s our promise to you – if you’re not 100% happy, we’ll buy your home back from you with a cash offer (within a year of your purchase). 

Want to help your children achieve their homeownership goals? The Lino Arci Team can help! Give us a call at 416-571-2724 or click here to email us today.