Today’s real estate market without a doubt the craziest I can recall. All one hears nowadays is how expensive the housing is. For me, the concerning issue is wondering how my kids could ever afford to own any property?!?! I hope they will be successful in their careers, or may be win a big lottery, but those things are a bit out of my hands. I am sure many of you have the same concerns. What could we do to help them?

Here is one of the scenarios: You own your home. You have been lucky, and thanks to the crazy market, your home has doubled in price since you bought it, so potentially, you have something to leave to your children. However, you want to live a long and happy life in your home, and you do not want your kids to have to wait for their inheritance to own their homes.

You go to the bank and ask how much equity you could take out of the house, and happy to learn that it is quite a bit. It is enough to pay 20% downpayment (if you want to save on CMHC insurance) on a small property. You take the money as HELOC (home owner’s line of credit), take advantage of today’s low mortgage rates, and benefit from the current hot rental market. Within 30 days, you can buy a property with zero money and be renting it out. Voi la- you have established a starter property for one of your kids.

It might cost you $200-$400 a month, but since you can remortgaged your house with today’s lower mortgage rates, you can save that amount on your principal mortgage, and your balance sheet will stay the same. The only difference is, in a few years you will have partially paid off property, with some equity in it. One kid is set, how many more to go?

I know people who have done it, I have done it, and you could too!

If you have any questions, or looking for the property, let’s talk,

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