During the period (normally up to five years) that your son or daughter is attending university, the cost of renting accommodation can approach $30,000. Even if costs are half that amount, it is still too much!
Instead of renting, why not invest in a townhouse/house in the university area? With a minimal of 5% down (CMHC regulations as long as the child is included on title) and closing costs (approximately 2%) you could purchase that home, and have your son/daughter live there. Then at the completion of their university (graduation) you can sell that home to recoup your original investment.
You may also want to consider purchasing a property with the intent that it be generating revenue in addition to housing your own children. Parents choosing this route should buy rental property to run as a business, with their child as a site manager. (CMHC regulations are a minimum 15% down payment)
The big advantage to this strategy over other real estate investments is having your child on the site. There are tax advantages to this strategy and children tend to make excellent landlords and take responsibility for what they consider to be their own place.
When a child is paid as manager of the property, parents can deduct the payments from rental income and the child is usually still below the threshold for taxable income.
There are also a number of other tax benefits that come with owning a rental property. Mortgage interest, property taxes, home insurance, utilities, and the capital cost allowance on the property can all be deducted from income.
FINANCIAL ADVISER
It is recommended that you confer with your financial adviser to determine if this is possible (or preferable) for you.
Please complete the form "Re: Home Purchase" and in the "Remarks" please state that you wish to purchase the home in the university area for your son/daughter.
At that time, I will advise you (either by e-mail or FAX) of what is available on the market in that area, at then at your convenience, commence looking.
BACKGROUND
RECOMMENDED SOLUTION
COMPLETION OF FORM
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