Why a Presale Condo says “Congrats” Better than any other Graduation Gift?
Graduation ceremonies are one of the most significant milestones in our lives, and they’re celebrated wholeheartedly here in the west.
Graduation isn’t just liberation from school but also the door to the real world, one your kids must navigate through on their own. But a little help can go a long way!
The parental instinct to worry about your child never goes away, in fact, this “real world” might scare parents the most. But what if we told you there was a way for you to make sure your fresh-out-of-school youngins have security, financial stability, and comfort with their transition to work-life?
This is where a gift of a pre-construction condo outshines any other present and trust us, it has many benefits!
It is something that will set them up for at least the beginning of their independent life and parents can live stress-free so that their child has stability and security in their lives.
How to help your kids get a presale condo?
Now, of course, we are not suggesting that you spend millions of dollars on a fancy new condo and put it in their laps as a graduation present.
But, if you do have the resources, there are some practical ways that one can help their kids get started on the city-living lifestyle.
Budget & Affordability
Before making a decision on whether this is possible or not, you first need to ask yourself important questions.
Can you afford it? What is your budget? How much savings do you have currently?
And it is not just the questions you need to ask yourself and your financial advisors, but you also need to discuss with your children.
Talk to them about their requirements, what areas they would prefer, when they want to move in, and also what their possible earning situation will be once they graduate.
Proper planning way ahead of time will help you not only be better prepared but also facilitate better deals for you.
The Best Way to Help them with an Investment Condo?
One of the most common ways parents can help their newly graduated kids with a presale condo is by helping them cover the deposit.
Typically, in pre-construction condos, we have seen deposit structures be around 15% to 20% spread over two to three years.
Since this amount is usually collected in smaller increments, this is a good way to start on your presale condo if you have some good savings.
Once the deposit is out of the way, parents can even help out with some closing costs once the condo is completed.
It is also a good idea to get your kid a good mortgage agent so that they can get pre-approved and get a good rate on their mortgage once they move in.
If all this seems like too daunting of a task, ipresalecondos team is here to smooth out the process for you. With 20+ years of experience selling condos, we can pinpoint the properties that we know will make for a great investment, specific to your needs. Plus, with in-house lawyers, mortgage professionals, and property managers, we offer end-to-end support for all your real estate needs.
A Simple Example with Some Numbers:
Let us look at an example and simply breakdown how the deposit structure works and how you can help them out:
Say, you are looking at a 1 bedroom – 1 bathroom unit for $550,000
The deposit structure for this can look something like this:
(Note: Do keep in mind that this is just an example as the deposit structure and the dates can vary from developer to developer.)
Deposit Structure & Costs
$5,000 on signing
Balance to 5% in 30 days = $22,500
5% in 90 days = $27,500
5% in 370 days = $27,500
5% on occupancy = $27,500
Total Deposit: $110,000.00
Mortgage Balance: $440,000
Mortgage Payment: $1,839.92 ( 25 year amortization, 5 year term, 1.89%)
Condo Fees: $300
Property Tax: $250
Insurance fees:$50
Total: $2,439.92 / month
Now, in this case, if the initial deposit payments were covered by the parents and the monthly mortgage payments and costs were to be taken care of by the child, then it comes out to be around $2,500 a month.
Research has shown that the rents in the Metro Vancouver area have risen 16% to an average of $2500 for a 1 bedroom apartment. With rents only going higher, it makes sense to be putting that $2,500 in your own investment rather than someone else’s.
Why Pre-Construction Condos as a gift?
Gone are those days when you could hold a 9-5 job and have all your financial needs satisfied.
Sound investments are the backbone of good financial health and getting your kids started with their first real estate investment could be a game changer for their future.
Put simply, a presale condo is a gift that keeps on giving!
Here are some reasons why a presale condo is one of the wisest and most lucrative gifts ever:
Reason #1: Safety & Wellbeing
We know that if it were up to the parents, they would keep an eye on their child 24/7. Your child’s safety and well-being are of utmost importance especially when they start their journey into adulthood.
A condo can take away a lot of this stress from the parent’s minds.
One of the biggest advantages of a presale condo is the round-the-clock security.
Most condos are also very well located in terms of amenities like hospitals and also are usually closer to the business hubs in the cities. This would also lead to lesser travel time to and from work for the kids.
Reason #2: Responsibility & Freedom
Nothing says “get your act together” than sending one’s kids to live a life of responsibility and freedom on their own.
An independent condo is a good reminder to them that the cushiony part of their life is over and now they are responsible for their own life.
And trust us, you would be amazed at how great of a teacher independence is.
It teaches you important life skills like cooking, fixing a broken sink, paying your bills, etc.
A presale condo is not only your child’s path to independence but also a catalyst for turning them into responsible citizens.
Reason #3: Comfort & Convenience
One of the biggest draws of the condominium lifestyle is the plethora of amenities that come with the building to make the homeowner’s life comfortable.
Along with this, also comes a sense of community – parents do not have to worry about their child’s community or what they do in their spare time.
Condos actively encourage you to make acquaintances, stay fit with amenities like pools and gyms, play your favorite sports or even enhance your creativity.
Reason #4: A Worthy Investment
There are so many ways that a pre-construction condo can be a great investment for both you and your child.
Even if the condo is being bought purely for investment purposes, it is still a great deal for your kids as condos can be sold at completion netting you a good profit by flipping it.
With the demand for city living only going higher. A condo is a honey pot for making money from rentals.
Ipresalecondos has in-house property managers that help you with the whole renting process from finding responsible tenants and managing the rental property.
Not to mention the fact that this would be your child’s first entry into the real estate market. The value of these condos could very well double in the future.
Final Thoughts
We are well aware of the fact that a presale condo is not a measly investment. But if you can afford it, a benefit of investing in real estate means that your deposit and investment earn money as the market grows.
Plus, the most attractive reason for investing in a presale condo is the gift of financial freedom. Not having to rent or pay for someone else’s mortgage is a breath of fresh air in a society where homeownership is declining. This is something that they will thank you for the rest of their life.
At ipresalecondos.com Our goal is to provide you with an enjoyable and seamless buying experience. To that end, we’re constantly working on improving accessibility to the latest presale projects in the city of Surrey, Vancouver, Burnaby, Richmond, Port Coquitlam, New Westminster, and the rest of the lower mainland.
If you want to learn more about what kind of market we are in currently and how to get the most out of it, get in touch with Ravi Bhindi, who has 18+ years of experience in real estate and pre-sale condos. Please call or text at 604-825-8881 or email at info@ipresalecondos.com
