Why I’m Buying My Kids Their First House, When They’re Barely Old Enough to Ride a Bicycle



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Article belongs to MoneySense Magazine, December/January 2012 Issue

I’ve been saying it for years. 

By buying your kids a place now you can absolutely set them, and YOU, up for a much easier life financially. I’ll use my kids as an example. They are 5 and 6, and this year I am buying them each their first home.

I know, I know, that sounds crazy, but I have clients doing this very thing on a regular basis. It’s not rocket science, its simple math and a few hours of education with me.

Some of this money will be used to pay for their post-secondary education, and the balance will remain in equity in the property when I gift it to them if/when they are worthy of it.

Unlike Romana in the article, I won’t be charging them interest. After years of receiving a financial education from me, my kids are either going to live by those rules or not. If they do, I will be happy to give it to them, if they don’t they are kissing the house goodbye. To me, charging any sort of interest defeats the purpose of giving them a head start, and is not necessary if they have proven worthy of the gift. Just my two cents.

Simple, yet incredibly effective.

If you want to see the math and find out the potential return call me at 613.203.7333 or email me at julie@teamjamiesonrealestate.com.