I feel it coming closer everyday. My oldest is still in grade 11, but the signs are everywhere - he will be leaving home in 18 months or so. I am happy he gets to go out and start living his own best life, conflicted over the change in our family dynamic. He didn't think he would be going on to university - until this fall when all of a sudden, it became his focus! I had been planning that he would buy a small place and move out and start building equity in a home. Now he might be spending years in dorm before going on to the place where he intends to settle down. What does this do to the investment building plans? Well, not much as it turns out! Real estate has continued to bring strong returns. So why wait to invest? How many times have you heard people say, "I wish I would have invested in real estate 20 years ago"? What do you think they will be saying in another 20 years? That's right, the same thing! The time to invest is now. Even for my son who may not entirely know where he is going. The new adapted plan is to find him a house here in Winnipeg to purchase and then rent out. It could be a VERY small home in a not so good area, or a newer condo in a better area of town. However he decides to go about it, he will be investing in his future, building equity while having someone else pay down the mortgage and add to his income every month. Of course that home will have to be managed, but there are great management companies out there to do just that. I checked out what homes were worth 5 years ago in a desireable neighbourhood here in Winnipeg, on average $213,000. The average price for a home in that same neighbourhood now is $304,000. Even if you bought a house, had someone rent it 'just' to cover the costs, the value of that home has gone up $91,000! Wouldn't it feel GREAT to come out of university with investment rather than debt? The mortgage has been paid down by 5 years and you have had tax savings because of it. . . . What about in the least desireable area of the city? 5 years ago, average price was $126,000 - today they are $183,000, that is still an increase in value of $57,000. Let's talk about this and make a plan for your kids too!
Child Leaving the Nest or Building their Own NEST EGG?
- February 20, 2014
CENTURY 21 Carrie.com