The advantages of buying a condo for your young adult
In today’s real estate market, it’s becoming increasingly common to see parents buying a condo for their children as their first home. According to a TD Canada Trust study, it is estimated that this type of potential buyers corresponds to 10% of the market. In fact, 1 out of 10 Canadians that consider buying a condo would do so for their young adult.
With Montreal’s outrageous rental accommodation prices, it’s often better to buy a condo than to pay rent to a landlord. To make the best out of this type of investment, here are some tips to follow.
Benefits of urban living
Choose a condo, preferably in an urban area. In the city, public transportation and basic services are often more accessible. Find a place with a grocery store nearby.
Another advantage of living in the city is the high demand for properties. This means that your investment will be safer and more stable in the long term.
Having just left the family home to pursue his/her college or university studies, your child will have more than enough with a 1-room condo, loft or studio. However, don’t forget that you could buy a 2 or 3-room condo. This option will allow your child to have tenants and will make you reap the benefits of your investment even faster.
Depending on the agreement reached with their parents, some kids can contribute to the condo’s monthly payments. This way, your child will learn to assume responsibilities and become familiar with managing a budget. Even if the young adult pays only a minimum amount, this represents an investment that he/she can use in the future.