Condo Ownership and the Bank of Mom and Dad
Buying your first home is an expensive proposition these days, so it’s no wonder that the amount of parents considering buying their kids a condo has jumped from five to 10 per cent in the past year, according to a survey commissioned for TD Canada Trust. When one considers that the the price of real estate has jumped to unprecedented levels, which is making it difficult for grown children to put together the needed cash for a mortgage down payment, it seems like a solid idea.
In this particular instance condos seem to make sense over traditional houses, particularly when the cost of maintenance is factored in. In a condo, parents don’t need to worry whether or not their children are ready for the responsibilities of home ownership.
It’s not surprising that taking a “loan” from the bank of mom and dad is becoming more popular. Personally, I like the idea that in a condo there is no lawn to mow.
