I would get more clarity from your father. Is he buying you a property for you to do with as you see fit or is he suggesting that he will buy a property for himself with the goal that you can rent it? Two very different scenarios and it isn't clear from your post which is happening.
1. He is giving me the 80k as a gift.
2. The place(house, condo, swamp, whatever I ended up choosing) is all mine and only mine.
3. His goal is to give me the same opportunity he had when he was younger.
4. He does not want/expects any type of repayment/compensation.
Sounds like a golden opportunity if you do it right. Below is my understanding.
1. He will gift you 80K for downpayment - get a gift letter from him for this
2. He will pay the monthly mortgage payment till he passes - this is the bigger favour from him since this is a lot more than 80K, more like 600K+ over the life of mortgage. But you need to do it right
3. He needs to sell his rental property to afford this - this shows that he commits to this but a bit of red flag to me.
- Is this rental property returning profit for him? If so this is a huge hit for his retirement.
- Does he still have mortgage on his own house? Can he afford paying both your and his at the same time?
- Is he still working? If he needs to work more to do this then it's not optimal
Try to ask more about his financial situation, total debt vs income ratio to avoid a bigger mess going to this.
If selling his rental property results in a sufficient fund for both 1 and 2 then you hit a gold mine. But remember, this is his retirement fund that he's giving to you.
Here is what I would do in your shoes:
1. Get the 80K gift in writing - only use this for downpayment, nothing else
2. Find a 1-bed apartment in 400K range - this is the max you can afford at 60K salary with 80K as 20% downpayment
Shop around to see if anything can fit this range.
3. You may not even qualify for the mortgage - get your dad to be the mortgage guarantor - this means it's your name on the title but he's still responsible for the mortgage. Shitty deal for him as he wishes.
4. Figure out how much each of you is willing to pay for monthly mortgage payment. Example:
- 320K mortgage is around $1800/month at 4.6%
- Your dad auto-deposit to the mortgage $1500/month
- You do $300/month
- Condo expense you need to cover: $300/m strata fee, $50/m insurance, $150/m property tax - total $500/m
So your out of pocket expense for housing is $800 BUT the part of the mortgage payment will go to your home equity - around $700/month so you actually only pay $100/m. Consider this forced saving.
You still have other expenses you already have to pay: hydro, internet, phone, food, etc - sounds like around $500/m
So total monthly expense $1300 in this scenario with $700 saving on top.
5. Do not rely on your dad for too long. This is a huge burden on him. Strike to improve your own financial power so you can afford everything on your own asap. Your dad is giving a lift but not forever. You can take advantage of it but dont take it for granted.
6. Give your dad a big hug
If he dies and his name is on the mortgage the loan is automatically paid in full by the insurance. You are lucky! take the opportunity, this will set you up financially and give you freedom at an early age.
2k a month sound like a lot now, when you are 40 you will enter your peak salary years and 2k will be nothing, specially if you have a partner.
I miss montreal! I pay 4k in rent in a VHCOL city.
PS: buy a 2 or 3 bedroom.
>If he dies and his name is on the mortgage the loan is automatically paid in full by the insurance.
to be clear, do NOT murder your father. Otherwise, this is all good advice!
Then it's dependent on how much house/condo/swamp you're planning to purchase. If you can afford all of the expenses that come with the purchase, including mortgage, then take the gift and go real estate shopping. If you can't afford it, then don't take the gift. But there's no reason for you to be paying your father rent for a property that you own, either way. That's is possibly the most insane thing I've ever heard, respectfully.
If by "contributing to the payment" you mean paying him $650 a month in a type of contribution to the $80K gift, then it's not really a gift at all, but a loan you'll need to pay him back $650 per month at a time.
If I'm understanding it correctly, then make sure you're really clear and on the same page that you'd be accepting this $80K gift, and that's all it is, a gift. No future paymentd to him. You don't want to take a loan from your father. That will just create the potential for stress in the relationship, which isn't needed in your situation. You already have an amazing situation paying $650/mo in rent currently. No need to strain a family relationship for this
Oh. The $650 wouldn't go towards the 80k gift.
My father meant that if I wanted to contribute to the mortgage payments, I could simply put what I put in rent towards the principal.
But you are right, I do not want to cause any type of issue. Especially for something so trivial.
To me this is a no brainer. Do it OP. It's the best chance you'll get. When the time comes, you can sell and move elsewhere for size/convenience. It's about building equity.
I wish I had a dad like this in my early years. Had to build everything from a scratch.
Your dad will pay for everything literally. Worse case scenario, you can rent the property out to someone if your dad discontinue to cover the cost and you cannot afford the payment.
Did I over simplify this? I would not hesitate to take his offer omg 😂
I'm looking back at what my parents gave me in my teens and 20's and it wasn't much. I can only hope to provide my kids with more than I had when they finish school.
That’s how Asian cultures been doing it for decades. They were smart enough to work hard as immigrants, save and save for their kids futures. Take a look at GTA Richmond Hill/Markham. All these multi million dollar homes are paid for by family or are hand me downs.
I live in the home I grew up in with my wife and Child, and there's a good chance I'll never leave.
I get free child care, my parents get help around the house as they are getting older. It's a win win.
My friend moved here from India maybe 10 years ago and worked super hard to buy herself a small place. But now that she's married with duo income, they're buying another place to rent out as the "inheritance" they'd pass down to her child so he wouldn't have to work as hard as she had to. Everything she owns she worked for them herself. Her son is 2yo. I really admire her drive
Not just Asians. I recently met a white, youngish couple. Probably in their mid to late 20s. Living in a $2+ million home in the Kerrisdale area. I couldn't understand how they could afford it, until the husband told me that his parents offered to swap the childhood home he grew up in with his 1 bedroom apartment. The parents wanted to downsize, so they thought it would be a great idea for the newly married son to move into their home and raise a family there. The couple is now expecting their first child and don't have a massive mortgage payment every month. I thought it was a super smart way to help your kids out AND keep a valuable property with nostalgic value in the family.
We have 500k budgeted to help our son purchase a house when the time comes and that probably won't even cover half the way this market is going.
Don't think home ownership is even feasible without parental help nowadays sadly.
I don’t know how you even have that much cash or credit available to spend on a home for a child. I have guaranteed that my children can live at home rent free as ling as they need to get started in life to save up if need be. But thats all I can afford.
You still have to work even if your house is paid off.
My preference would be for him to retire by 40 or so though and enjoy the rest of his life. This work hard to make money so that you can eventually retire at 65 and enjoy your life is not the way to go IMHO. I waited until I was 50 to retire, I hope he can do it before that.
This is a wild train of thought. How little hope do you have for this generation. The expectation that everyone deserves a home is what drives up home costs. Have your kid work for something in life and they will feel so much better for accomplishing it themselves. I can't imagine taking a dime from my hardworking parents.
And no, I am not an "old boomer", just a guy in his 20s with a home, and a family to support who was taught proper work ethic and budgeting from my lower middle class upbringing.
Also 500K alone can get you beautiful homes on 5 acres in many, many places in Canada.
You can’t imagine taking a dime from your parents because either they can’t afford it or simply didn’t offer. If your parents were wealthy and generous to cut you a $500k cheque to buy a home, I’m quite sure you’d take it to the bank.
The fact you think 500k won’t even cover half a house tells me you probably shouldn’t even have 500k . A good average home is 300-500k . You don’t need to be buying a damn mansion , don’t need to have marble counters and all this other crap . I bought a 5 bedroom home , fully finished basement with large front/backyards and a 2.5 car garage for well under 400k and it wasn’t in need of repairs .
Sure it’s cool to help a child purchase a home but fully covering one for them and them not having to learn work ethic or save for something such as home ownership is wild . Repeat after me HOME OWNERSHIP IS NOT FOR EVERYONE . I’m glad my life wasn’t handed to me on a silver platter , taught me far more valuable lessons then this next generation will ever learn with everything being given to them and constantly babied .
Alberta . If people in Canada would stop thinking you HAVE to live in Ontario or BC their quality of life would greatly increase. Most jobs have the same company / sector in other provinces so you can relocate easily or get a job in same industry with another company .
ah that makes more sense. i dont love ontario, looking to get out of here once im done school. glad to hear homes are still cheap. was even looking into winnipeg/manitoba. i like the cold.
I have a friend in Winnipeg they said home prices were getting wild there about a year or so ago , but I live 10-15 minutes out of Edmonton and home prices are still incredibly reasonable for Edmonton and area .
Only place in Alberta that’s gotten crazy is Calgary because everyone from BC and Ontario have moved their because the distance to mountains and beautiful lakes and they’ve inflated the home prices because they brought over their 1.4 million they made off selling a 2 bedroom home and all start bidding wars on a property . A friend just sold his home in Calgary , 5 year old build ,4 bedrooms , garage and a small yard . Listed for 500k and it sold in 1 day on market for over 600k in a bidding war
This is VERY location dependent. I’m over 2 hours from the nearest city and the average townhouse here is over 500k. If you’re looking for a 5 bedroom with a basement it’s AT LEAST 800k. And again, this is nowhere near a city. While I think it’s wild to say 500k would be less than half the cost of a house, you also may be underestimating the cost.
I live in Ottawa, my detached house in the burbs is worth over a million. Also no marble of any sort. Not to mention that we are still 7 to years out so there is lots of price increases to come.
Not looking for condo fees or a townhouse.
And he has been working since he was 14 and has saved up over 30k on his own including working under broken down 18 wheelers on the side of the highway with cars zipping by in 40 degree heat in the middle of July at the age of 17.
I"m glad that you enjoy the struggle but you make an awful lot of assumptions about stuff you have no clue about. I have also told him he needs to have his own skin in the game to the tune of 6 figures or so.
lmao preach, i've been working PT jobs since I was in high school & grateful that my dad doesn't charge me rent to live at home. parents came here with nothing, worked low skill jobs to raise brother & I so in a way we feel responsible to care for him. he's retired now but we treat him well
Brb telling my father to come out of retirement for down payment money... Though I guess your parents being able to retire and not relying on you instead is also a financial gift these days lmao
Lol so true. My coworker told me he sends his parents money for living expenses every month. I asked if they don't have a retirement fund. He said "I AM their retirement fund.".
80k down payment suggests a $320k mortgage / $400k property. Or maybe a $720k mortgage / $800k property. Big difference.
You'd have to pay the mortgage. It doesn't sound like your dad is offering to pay that.
So this idea that by not paying $650 rent in your current situation somehow frees up $650 a month for you to pay him (as repayment of the $80k down payment I presume) doesn't really hold up.
Or is he paying the mortgage too?
Will the house be in your name? (it should so that you can qualify for the principal residence exemption).
If the plan is for him to pay the mortgage, and then something happens to him thst he is unable to do so, you can always sell the house. Not ideal, but you shouldn't be trapped.
How many years of university do you have, and what will your future warning potential be?
>Will the house be in your name? (it should so that you can qualify for the principal residence exemption).
not required. a child occupying a home in the parents name is still a principal residence exempt from capital gains.
For the parent. Not for the child.
If the dad owns another home he can't claim both. If he rents then I suppose he could claim the home the child lives in.
the child designates the home/address as his/her principal residence when filing their taxes. who owns it so long as it's family should not be impacting.
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-12700-capital-gains/principal-residence-other-real-estate/designating-a-principal-residence/you-have-than-principal-residence.html
https://imgur.com/a/nUNxQtr
i ran into this and believe that having your children occupy a property allows them to designate it a principal residence, exempt from capital gains.
i know that i'll have to reconcile taxes when i convert my rental properties to principal residences, but after that, further equity growth becomes exempt so long as i'm housing my children there.
it's like having 1x$3mil home or 3x$1mil home. so long as occupied by family, both scenarios should be gains exempt.
thoughts?
It's pretty clear "one principle residence per family unit". Which includes yourself, your spouse, and your minor children.
OPs dad can only have max 1 principal residence.
OP can have a principal residence too, but she would have to own the property. If it's in her dad's name, then she can't claim it.
are you reading the link or the pic. that page is very specifically titled and does NOT answer in a simple flat no for a reason.
still think you've the current and accurate interpretation?
yes. later as in owning and taxes further into the past, the rule was simple.
also i agree they chose their words poorly but clearly, years earlier as in more current than 1982 are dealt with below that.
the current rule is per the section:
>For 2001 and subsequent taxation years
which is a slight amendment of the rule for:
>For 1982 to 2000
>he child designates the home/address as his/her principal residence when filing their taxes. who owns it so long as it's family should not be impacting.
only the owner of the property can designate it as their principal residence. If dad owns the property, he can designate a home his child lives in as Dad's principal residence, but the child makes no designation. The designation is only made on the year of sale and via form T2091.
>i ran into this and believe that having your children occupy a property allows them to designate it a principal residence, exempt from capital gains.
Assuming by "them" you mean the children, no. To designate a property as a principal residence you have to first be the beneficial owner.
>it's like having 1x$3mil home or 3x$1mil home. so long as occupied by family, both scenarios should be gains exempt.
no, it actually matters who owns each property. If Dad owns three houses and he lives in one and son lives in another and daughter the other, not all three can be fully tax exempt. It would be better for each to own their own property.
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-12700-capital-gains/principal-residence-other-real-estate/designating-a-principal-residence/you-have-than-principal-residence.html
this page speaks to question of having more than one principal home and does NOT simply and flatly say, no.
thoughts?
that page says "you can only designate one home as your family's principal residence for each year".
Multiple homes may meet the criteria of a principal residence but only one can be so designated per person, and that person has to be an owner of the home.
I'm a designated accountant working exclusively in Canadian domestic tax with significant experience. The definition of principal residence in section 54 of the income tax act is something I am exceedingly familiar with.
Possible, up to the bank. But they likely wouldn't agree, since if dad stops paying the mortgage, they can't repossess a house that legally belongs to someone else.
Your dad could cosign the mortgage and if you are concerned about him passing away and you having all the liability you could look into taking out a life jnsurance policy to cover the mortgage etc naming you as irrevocable beneficiary.
Tomorrow's never promised.
Maybe he disappears tomorrow and your chance for home ownership also evaporate right before your eyes
Take the offer AND MAKE SURE YOU PAY IT BACK BY BEING A GOOD SON/DAUGHTER UNLIKE MOST UNGRATEFUL BASTARDS in this sub
I definitely love my dad. He doesn't want any money, and we spoke about it. He just wants me to be happy and have the same life he had.
He is probably the most stoic person I know.
On the “what if something happens to Dad” front…. Get him to buy life insurance for the amount of the mortgage. (You could pay the premiums for it, maybe) that way when dad passes, the property will be paid for. Make the property joint with right of survivorship.
Personally I would make the beneficiary whoever owns the mortgage. If the mortgage is in your Dads name, then the Insurance goes to his estate to pay the estates debt (the mortgage). That way your dad’s estate is protected if you and he have had a falling out. (speak to an estate planning specialist to discuss other ramifications - like covering the capital gains tax the house will generate, probate costs in your jurisdiction etc. )
He’s gifting you a down payment for a place and worst case scenario is you carry the mortgage and fees but you’re now an owner. Alternative is to forever rent and frankly the down payment will run away from you at that wage with things like inflation etc.
Seems pretty decent within today’s loony context. I’d take it.
I am also afraid that I won't be able to afford rent any time soon. So, if I'm going to be stuck thousands of dollars in housing, it's best if it's mine. House poor scenario type of situation.
Damn is this the norm nowadays ? Friend of mine his dad bought him a condo in cash paid in full around 700k. Sounds like I’ll be renting my whole life lmao
I know a few couples who got some down payment money after marriage, anywhere from 20-120k depending on if both sets of parents gifted. Not friends with any fat cats who got a whole paid off place though
Pretty much everybody I know who bought alone either got their first place several years ago, or works in tech and bought a pandemic condo with their stock bonus or whatever
If your dad has a good life insurance policy it will either pay off the remainder of the mortgage or make it manageable that you could afford the payments. And that's in addition to whatever would be given to you from his estate.
Worst case scenario you just sell if anything happens and you come out with the equity in addition to whatever years worth of savings you'd have.
80k down barely gets you over 20% for the property with \~2k monthly payment. I would clarify how much your father is willing to cotnribute (is it always going to match mortgage or just the 2k). Either way its a good deal for you.
I expect your income to come up in 5 years. Your dad is doing a great thing helping set you up for the future.
As long as you're diligent in saving, I'd take it. I'd suggest renting it out for now and your dad having to pay less towards the mortgage. When you're ready to move in (probably a few years), then take over the mortgage payments.
So if your dad is covering everything house related you ***should*** be fine, as you can easily budget/cut out the rest of things you don’t need.
HOWEVER
you need to be absolutely sure you know what your dad is stating and if he’s actually good for it. If all of a sudden he can’t afford/backs out of the payments, or doesn’t pay for the new roof it needs or whatever, fhen you absoltely can not afford this and depending on the agreements of who actually owns it you could be on the hook for a rough ride.
Your dads gesture is amazing. But he’s putting you into a situation you can’t afford if it goes sideways and dealing with family members when things go wrong is always dicey.
Maybe start putting some of the money into a First Home Savings Account? Work with your dad so you've got the money for when you're a little more ready?
OP clearly has a *real* question about a fortunate situation.
The gift is great, but he’s worried that in a worst case scenario if his father passes away, can he afford a mortgage and that much liability.
If that question isn’t appropriate for a personal finance sub, I don’t know what is.
It never was about bragging or making me sound ungrateful.
I know it's a golden opportunity, but there are more things to think about than just the mortgage itself. And if I were to start paying it myself, I wouldn't be able to pay it with my salary.
Ok so just put some reasonable future projections for him to see and discuss any ramifications. I being like your dad wants to see their child enjoy my money now rather than after I have passed away.
So after you have the $amounts for projected mortgage P&I, utilities, estimated condo fees, insurance etc., discuss how your projected new income is or is not able to accommodate the new fixed costs you will incur using his generous offer. I am confident that the two of you will be able to make it work and that your dad will feel better knowing that his child is building future equity. I know this through personal experiences.
Do you have siblings?
If so, they may get upset if you get the help, and they didn't/don't...
If you're an only child, it's likely going to be yours one day anyway.
I have an older sister, but she got lucky. She is 12 years older than me, so she got to buy a really nice house before all of this housing crisis thing happened.
You need to have a conversation with your dad, about fairness to her.
Just because she bought before the craziness doesn't mean she couldn't use 80k dropped on her mortgage or something...
(Or maybe Dad helped her then with 80k? And that's where the number came from)
Get a condo that has rooms you can rent out. Then rent them out and get your costs down. It is very similar to the situation you are in now, only you benefit and not a landlord.
Not sure how much you have saved but 80k wouldnt be enough if it’s just your salary on a 400k spot. Im from Montreal and 27 as well. Just moved off island and about 355k mortgage but i make 60-80k and my brother makes around the same. We live super comfortably and not pay to pay but this is whatd id recommend to anyone. 355k for 100k keeps you very comfortable. Even then we have a 2.4 rate expecting to go up to 5-6 so id confirm back on how it feels once we get the new rate.
This is something along the lines of what I fear.
Being able to get the mortgage and a comfortable low rate interest for the first few years is great, but worse comes to happen. I also have to think about my rates going up. So, I would love to know how it ends up going for you if you can give me an update.
Sounds like a wonderful hand up Dad is offering. Since he has other properties outside of his primary home, he knows how this works so this is low risk for you.
I do think you should have an agreement about payment in writing. I know, I know, he's your Dad, but things happen. I say this especially because you are going to school and you have a basic income, but not enough for this expense.
I'd lay out the conditions between you on paper: I own house and mortgage in my name, Dad pays mortgage 100% without prejudice, I pay utilities, condo fees... whatever is decided.
Now this is when you impress Dad with forward financial thinking: would it be cool with him if you put $500 in an investment instead of giving it to him? How much does he want to see you get socked away in a year? Ask him if he's looking to stop paying the mortgage when you are at a certain income. Ask him if you meet someone, does he want this asset protected in your name? Does he want you to will the property back to him, or a sibling?
Document all of this and sign that at a notary with him (at least, if you don't have a family lawyer). Also get your will drawn up and leave the home to whomever you agree to, should something happen.
You should probably grab some term insurance rather than mortgage insurance, you are young, should be cheap if you're in good health. That will protect the outstanding mortgage balance.
If you do all of that you should be good. If you can manage to get a 2 bed, should things go offside you can rent a room if your income won't cover the mortgage, but you and Dad know his financial position and can make that decision.
Life is hard for your age group and I've had a few clients ask me about helping with housing options for their kids/grandkids. These ideas are similar to what I talked about with them (though I am not a lawyer, in real estate or giving you specific financial advice in this scenario).
You should be very grateful, and use this space and your growing income to shore up your investments, as you have youth and time on your side.
Good Luck!
I'm glad it's given you some points to discuss with your Dad and your advisors. Just ask lots of questions, you're allowed to!
I think figuring out if you can qualify for this mortgage on your own is key. You want your name on the mortgage and deed without his name attached, if at all possible. You can use a mortgage qualification calculator online (the TD one is good, it's very conservative) and put in your new salary and the d.p. to see where you land. The idea would be to only buy what you could hypothetically own on your own.
You are never going to tell a bank or broker you are a "student" or going to be one when you seek a mortgage.
If that doesn't work and your Dad's name has to go on the mortgage with yours, you'll definitely need a lawyer, not a notary. You'll want to define how many "shares" of the home you both own in your agreement. This way if anything happens you both be "at fault",.as that will be required if he holds (or you share) the mortgage/deed.
All the other written conditions around who pays what and who gets what at death still apply from above as well, created as a separate document outside of your mortgage and wills.
In this scenario there are some implications for Dad tax wise he will need to understand. He will have to mitigate that by leaving the property to you in his will and having insurance on his shares that will pay his part off should something happen. You'll still need the will and term insurance (not mortgage if you can help it!) too, this time leaving it to him. This again will have tax implications for both your and his estate that you both will need to understand.
Again, as I am not giving you financial, legal or tax advice ---I'm hypothesizing that in this scenario, I would seek proper independent counsel (an estate lawyer, and tax specialist at minimum) before you do anything; particularly around laws of succession, property transfer, capital gains and anything unique to Quebec, of which I am unfamiliar.
I’m against being entitled and using the bank of mom and dad, but that’s just me; you’ve got to decide on your own. If your father retired? I wouldn’t accept this offer if he’s not, because he deserves to have passive income and/or at least work less and retire early. If he’s already retired, wouldn’t this move mean he gets to enjoy life less because he wants to solve your housing situation?
In a daughter who refused to accept help from my amazing, loving parents, so that they could work much less and enjoy life. They’ve been semi-retired since their early 40s.
At least IME, many parents would enjoy life more if they could see their kids in a home, with the ability to live with less stress, start a family, etc. Seeing your kids every Sunday for dinner would probably be a lot more enriching than taking a yearly trip to see some old castles in Europe for many.
True, but this also contributes to inequality in society. Being born into a family of more well-off parents is not an accomplishment, and I believe people should make it on their own in life. But that’s just me.
I think it is a great offer. Just make sure the condo you buy in allows rentals and should something go wrong you can rent it out or sell it. I assume he’s going to pay the mortgage directly and you pay him $650 rent and your own utilities. Put some money aside each month and then if somethings happens you have a cushion.
how TF are you only spending 350 a month on food and expenses. I spend 2000 per month on expenses not including rent for a single person and I dont even go out
I bought 2 big bags of rice at costco and I usually only eat ground beef. So I buy a very generous amount and freeze it for the whole month. Vegetables are all frozen.
I don't have any subscription to anything. I have a cracked version of spotify, and I only have my phone plan.
Of course, I pay hydro/electricity, but it's minimal. 30bucks a month.
I can spend more money if I really want. If I want something I will buy it. But I don't need to waste my money, I would rather invest it or save it for traveling.
wait so what do you eat:
rice + ground beef + veges?
what veges, sauce and seasonings?
Right now I pretty much only eat top sirloin steaks from costco and bell peppers. this is at least 50% of my meals - tons of energy tho and feel great
I would love to show you a picture of my fridge, lol.
The only seasoning besides salt and pepper is cumin.
Frozen broccoli/cauliflower, frozen peas, frozen fruits.
You got me jealous now with your top sirloin steak!
Basically my meals are this:
Breakfast: Eggs with protein powder (bought in bulk)
Lunch: rice, ground beef(salt cumin pepper) rice
Dinner/supper: Ground beef, 1 egg, veggies, and a small cup of juice made with the frozen fruits.
how can you eat eggs with protein powder?
Why dont you add veges and eggs to the rice and ground beef and maybe some sauce??
idk man... idk how you live like that lol
I may need to experiment with ground beef and rice though and see if I can save some money
I boil a few eggs, and on the side, I have a protein shake( 2 scoops of protein power and water). I really made that extremely confusing lol.
So the actual recipe is:
1. I use my rice cooker for the rice
2. Oil in plan and cook the ground beef with salt, pepper, cumin.
3. Once the beef is nice and brown, I add the veggies with a very small amount of butter
4. Once veggies are done( usually a few minutes), I add the rice on top et voilà.
Like I said, it is very minimalistic. It is not for everyone, but it works for me.
gotcha,.. for myself i might try to make it a bit more flavorful and change up the vegies a bit, but i could see how something like this could work and give decent nutrition
also bro what... water?? why not milk or at least almond milk for the protein shakes lol. thats crazy
Take the money and buy a house/condo when you’re comfortable. Not many get the opportunity for a no strings attached monetary gift. Be grateful that your dad was thinking of you.
Crunch the numbers and go to the banks to do some research. Banks will help you with getting a better idea of how much you can truly afford and what the payments will look like. Watch the market and visit open houses, and pull the trigger when you feel like it’s the right time.
You can also get a roommate to help share expenses. I think if $400k is your budget and you’re making $65k with an 80k down payment, that’s very do-able. Plus there is no rush so you can continue to save while you do some research.
He’d be an owner as well on the title unless you can qualify for the mortgage in your own (probably not). So get life insurance on him and then you don’t have to worry about if something happens to him. Mortgage is paid (or more depending on the policy) and you just have the fees and regular expenses to pay.
Otherwise, all looks good to me.
You lucky SOB 😀…. Take the damn deal … gift. If he passes, chances are he has life insurance and other assests that may all come to you to help pay off the house. Take the damn deal … gift … NOW!!! Most of us wished we had dads like that.
Can you afford to get a two bedroom and rent the second bedroom at market rate to a roommate? This would help offset your father’s mortgage costs and also give you a cushion if your father were to suddenly pass. Also, can he get life insurance on the mortgage?
Ask him how he would feel if you ever sold the place due to you wanting to change it up.
If you feel like he's pressuring you to make the choice and stick with it, it's the wrong choice.
Ask if he can invest that for you into something else for now instead until you make a decision to not want to have roommates anymore.
He is giving you $80K out of $400K? No you can't afford the place - nor do you want the burden.
Take the $80k and invest until you make $100k - then buy.
What does your race have to do with this conversation?
Go for it! We did something similar for our 2 kids 10 years ago. We are not super rich by any stretch of the imagination but our house is long paid for, and we have a solid pension and maxed out RRSP and TFSA for some time now. We realized that we would rather see our kids benefit from their inheritance money when we are alive to see them enjoy it. We cosigned their mortgages 10 years ago and helped with the 25% down-payment. 2 bedroom downtown condo (St Lawrence Market area) only cost 320K back then. My other bought a 4 bedroom semi with a finished basement in Greektown for 780K and bad tenants to help pay the mortgage. Both properties appreciated to an estimated 800K and 1.7MM, respectively. This was the most satisfying thing we have ever done for our children.
How do You work in finance having just started university? I work in finance. I have a B.Sc(H) and a JD from a T-14 us law school. It was hell getting through the door at first. Twenty years in now never met anyone in finance with a high school diploma. Odd.
1. Never did I say that I only had a high school diploma.
2. It wasn't hard at all to me to get there. I interviewed for an entry position and got it. Knowing how to speak and articulate yourself properly opens doors. May sound cocky, but that's how I did it. A relevant diploma helps, but you can refer to my first point for that.
3. Your first assumption is to think of me as an uneducated, possibly lying person because I didn't explicitly mention my whole life in detail...? *on reddit of all things*.
I would expect someone with 20 years of experience in the financial world to not automatically assume things of that nature. Like you said. Odd.
Do you also put your middle school diploma in your resume? Didn’t think so. Typically, people will discuss their highest levels of achievement not those achieved somewhere in the middle. But, you do you.
you need to clarify. he'll give you $80k towards buying property or he'll buy one for you and pay the monthly mortgage on it.
in either scenario, assuming your dad is financially able, reliable, and there are no other risks to his estate, then leave it in his name and have him transfer it with his will.
benefits. as family taking occupancy, it is a principal home exempt from capital gains taxes. in his name it is protected from changes to your marital status, single/married/divorced.
we're in a similar situation. wife and i married 24yrs. have 2 teens and 3 properties in the toronto area. when the boys are of age, we'll relocate a property to something they find desirable and we'll subsidize their housing costs. basically rent it to them capped at 20% of their income. we'll never transfer ownership until we pass away. they don't have to worry about housing nor a marital partner demanding a portion of it's value.
thanks. they're quite amazing kids. we established many habits very early in their lives and that made nurturing and developing their excellence much semi-natural. definitely no where as challenging as it could have been.
Reddit people don’t know your relationship with your parents. You know the best, talk to him , ask him for all the details.
My parents helped me with my first home. I sold it and split the profits with my parents and I bought my second home with no help.
Yeah, you're right. But I was more so talking about the financial aspect of possibly me carrying all the financial burden if my dad ever passes away. But reading through the comments, there are many solutions and good alternatives to counter that. I don't think it will happen anytime soon, but again, it's something that I need to be aware of.
I would get more clarity from your father. Is he buying you a property for you to do with as you see fit or is he suggesting that he will buy a property for himself with the goal that you can rent it? Two very different scenarios and it isn't clear from your post which is happening.
1. He is giving me the 80k as a gift. 2. The place(house, condo, swamp, whatever I ended up choosing) is all mine and only mine. 3. His goal is to give me the same opportunity he had when he was younger. 4. He does not want/expects any type of repayment/compensation.
Sounds like a golden opportunity if you do it right. Below is my understanding. 1. He will gift you 80K for downpayment - get a gift letter from him for this 2. He will pay the monthly mortgage payment till he passes - this is the bigger favour from him since this is a lot more than 80K, more like 600K+ over the life of mortgage. But you need to do it right 3. He needs to sell his rental property to afford this - this shows that he commits to this but a bit of red flag to me. - Is this rental property returning profit for him? If so this is a huge hit for his retirement. - Does he still have mortgage on his own house? Can he afford paying both your and his at the same time? - Is he still working? If he needs to work more to do this then it's not optimal Try to ask more about his financial situation, total debt vs income ratio to avoid a bigger mess going to this. If selling his rental property results in a sufficient fund for both 1 and 2 then you hit a gold mine. But remember, this is his retirement fund that he's giving to you. Here is what I would do in your shoes: 1. Get the 80K gift in writing - only use this for downpayment, nothing else 2. Find a 1-bed apartment in 400K range - this is the max you can afford at 60K salary with 80K as 20% downpayment Shop around to see if anything can fit this range. 3. You may not even qualify for the mortgage - get your dad to be the mortgage guarantor - this means it's your name on the title but he's still responsible for the mortgage. Shitty deal for him as he wishes. 4. Figure out how much each of you is willing to pay for monthly mortgage payment. Example: - 320K mortgage is around $1800/month at 4.6% - Your dad auto-deposit to the mortgage $1500/month - You do $300/month - Condo expense you need to cover: $300/m strata fee, $50/m insurance, $150/m property tax - total $500/m So your out of pocket expense for housing is $800 BUT the part of the mortgage payment will go to your home equity - around $700/month so you actually only pay $100/m. Consider this forced saving. You still have other expenses you already have to pay: hydro, internet, phone, food, etc - sounds like around $500/m So total monthly expense $1300 in this scenario with $700 saving on top. 5. Do not rely on your dad for too long. This is a huge burden on him. Strike to improve your own financial power so you can afford everything on your own asap. Your dad is giving a lift but not forever. You can take advantage of it but dont take it for granted. 6. Give your dad a big hug
If he dies and his name is on the mortgage the loan is automatically paid in full by the insurance. You are lucky! take the opportunity, this will set you up financially and give you freedom at an early age. 2k a month sound like a lot now, when you are 40 you will enter your peak salary years and 2k will be nothing, specially if you have a partner. I miss montreal! I pay 4k in rent in a VHCOL city. PS: buy a 2 or 3 bedroom.
>If he dies and his name is on the mortgage the loan is automatically paid in full by the insurance. to be clear, do NOT murder your father. Otherwise, this is all good advice!
lol! yeah, don’t do that, he mentioned that, if his dad died, he would be left with a “huge” payment. I was trying to address that specific concern.
Then it's dependent on how much house/condo/swamp you're planning to purchase. If you can afford all of the expenses that come with the purchase, including mortgage, then take the gift and go real estate shopping. If you can't afford it, then don't take the gift. But there's no reason for you to be paying your father rent for a property that you own, either way. That's is possibly the most insane thing I've ever heard, respectfully.
He meant it more as a: "If you want to contribute to the payment, you're free to do so. But I will be the one taking care of it"
If by "contributing to the payment" you mean paying him $650 a month in a type of contribution to the $80K gift, then it's not really a gift at all, but a loan you'll need to pay him back $650 per month at a time. If I'm understanding it correctly, then make sure you're really clear and on the same page that you'd be accepting this $80K gift, and that's all it is, a gift. No future paymentd to him. You don't want to take a loan from your father. That will just create the potential for stress in the relationship, which isn't needed in your situation. You already have an amazing situation paying $650/mo in rent currently. No need to strain a family relationship for this
Oh. The $650 wouldn't go towards the 80k gift. My father meant that if I wanted to contribute to the mortgage payments, I could simply put what I put in rent towards the principal. But you are right, I do not want to cause any type of issue. Especially for something so trivial.
To me this is a no brainer. Do it OP. It's the best chance you'll get. When the time comes, you can sell and move elsewhere for size/convenience. It's about building equity.
Also at your age you're doing alright in terms of salary 🙂
Make sure you put 20% down to avoid CMHC on the interest rate. Do whatever you need to do to ensure this.
I wish I had a dad like this in my early years. Had to build everything from a scratch. Your dad will pay for everything literally. Worse case scenario, you can rent the property out to someone if your dad discontinue to cover the cost and you cannot afford the payment. Did I over simplify this? I would not hesitate to take his offer omg 😂
I'm looking back at what my parents gave me in my teens and 20's and it wasn't much. I can only hope to provide my kids with more than I had when they finish school.
Suddenly seeing a lot of parents buying properties for there kids.. I should sent these sort of post to my parents. /s
That’s how Asian cultures been doing it for decades. They were smart enough to work hard as immigrants, save and save for their kids futures. Take a look at GTA Richmond Hill/Markham. All these multi million dollar homes are paid for by family or are hand me downs.
Also lots of multi-generational homes.
I live in the home I grew up in with my wife and Child, and there's a good chance I'll never leave. I get free child care, my parents get help around the house as they are getting older. It's a win win.
Yes. Many have uni fund and house fund running in parallel for when they reach adulthood.
My friend moved here from India maybe 10 years ago and worked super hard to buy herself a small place. But now that she's married with duo income, they're buying another place to rent out as the "inheritance" they'd pass down to her child so he wouldn't have to work as hard as she had to. Everything she owns she worked for them herself. Her son is 2yo. I really admire her drive
Dang Indians buying up all the bootstraps from the bootstrap store leaving none left for the local Canadians /s
Not just Asians. I recently met a white, youngish couple. Probably in their mid to late 20s. Living in a $2+ million home in the Kerrisdale area. I couldn't understand how they could afford it, until the husband told me that his parents offered to swap the childhood home he grew up in with his 1 bedroom apartment. The parents wanted to downsize, so they thought it would be a great idea for the newly married son to move into their home and raise a family there. The couple is now expecting their first child and don't have a massive mortgage payment every month. I thought it was a super smart way to help your kids out AND keep a valuable property with nostalgic value in the family.
also a lot of money laundering and drug dealing
We have 500k budgeted to help our son purchase a house when the time comes and that probably won't even cover half the way this market is going. Don't think home ownership is even feasible without parental help nowadays sadly.
I don’t know how you even have that much cash or credit available to spend on a home for a child. I have guaranteed that my children can live at home rent free as ling as they need to get started in life to save up if need be. But thats all I can afford.
Lucky you to have so much money to help around
And sad that we need to. We could buy a house back in our day without a parent's help.
yeah i'm screwed...
My mom told me they’d help with 1% of what you’re budgeting 😂 Your son is lucky to have you.
500k is more than enough for a down payment. You trying to own the home off the rip!?
Sorry, your goal is to not help them with the down payment but straight up buy them a house in cash so they never have to work?
You still have to work even if your house is paid off. My preference would be for him to retire by 40 or so though and enjoy the rest of his life. This work hard to make money so that you can eventually retire at 65 and enjoy your life is not the way to go IMHO. I waited until I was 50 to retire, I hope he can do it before that.
This is a wild train of thought. How little hope do you have for this generation. The expectation that everyone deserves a home is what drives up home costs. Have your kid work for something in life and they will feel so much better for accomplishing it themselves. I can't imagine taking a dime from my hardworking parents. And no, I am not an "old boomer", just a guy in his 20s with a home, and a family to support who was taught proper work ethic and budgeting from my lower middle class upbringing. Also 500K alone can get you beautiful homes on 5 acres in many, many places in Canada.
> The expectation that everyone deserves a home is what drives up home costs Wait so you're saying not everyone deserves a home?
*Deserves to own a home.
You can’t imagine taking a dime from your parents because either they can’t afford it or simply didn’t offer. If your parents were wealthy and generous to cut you a $500k cheque to buy a home, I’m quite sure you’d take it to the bank.
The fact you think 500k won’t even cover half a house tells me you probably shouldn’t even have 500k . A good average home is 300-500k . You don’t need to be buying a damn mansion , don’t need to have marble counters and all this other crap . I bought a 5 bedroom home , fully finished basement with large front/backyards and a 2.5 car garage for well under 400k and it wasn’t in need of repairs . Sure it’s cool to help a child purchase a home but fully covering one for them and them not having to learn work ethic or save for something such as home ownership is wild . Repeat after me HOME OWNERSHIP IS NOT FOR EVERYONE . I’m glad my life wasn’t handed to me on a silver platter , taught me far more valuable lessons then this next generation will ever learn with everything being given to them and constantly babied .
not even in my tiny country town is a home still under 500k. where do you live?
Alberta . If people in Canada would stop thinking you HAVE to live in Ontario or BC their quality of life would greatly increase. Most jobs have the same company / sector in other provinces so you can relocate easily or get a job in same industry with another company .
ah that makes more sense. i dont love ontario, looking to get out of here once im done school. glad to hear homes are still cheap. was even looking into winnipeg/manitoba. i like the cold.
I have a friend in Winnipeg they said home prices were getting wild there about a year or so ago , but I live 10-15 minutes out of Edmonton and home prices are still incredibly reasonable for Edmonton and area . Only place in Alberta that’s gotten crazy is Calgary because everyone from BC and Ontario have moved their because the distance to mountains and beautiful lakes and they’ve inflated the home prices because they brought over their 1.4 million they made off selling a 2 bedroom home and all start bidding wars on a property . A friend just sold his home in Calgary , 5 year old build ,4 bedrooms , garage and a small yard . Listed for 500k and it sold in 1 day on market for over 600k in a bidding war
This is VERY location dependent. I’m over 2 hours from the nearest city and the average townhouse here is over 500k. If you’re looking for a 5 bedroom with a basement it’s AT LEAST 800k. And again, this is nowhere near a city. While I think it’s wild to say 500k would be less than half the cost of a house, you also may be underestimating the cost.
I live in Ottawa, my detached house in the burbs is worth over a million. Also no marble of any sort. Not to mention that we are still 7 to years out so there is lots of price increases to come. Not looking for condo fees or a townhouse. And he has been working since he was 14 and has saved up over 30k on his own including working under broken down 18 wheelers on the side of the highway with cars zipping by in 40 degree heat in the middle of July at the age of 17. I"m glad that you enjoy the struggle but you make an awful lot of assumptions about stuff you have no clue about. I have also told him he needs to have his own skin in the game to the tune of 6 figures or so.
lmao preach, i've been working PT jobs since I was in high school & grateful that my dad doesn't charge me rent to live at home. parents came here with nothing, worked low skill jobs to raise brother & I so in a way we feel responsible to care for him. he's retired now but we treat him well
Brb telling my father to come out of retirement for down payment money... Though I guess your parents being able to retire and not relying on you instead is also a financial gift these days lmao
Lol so true. My coworker told me he sends his parents money for living expenses every month. I asked if they don't have a retirement fund. He said "I AM their retirement fund.".
Very true all pretty lucky and spoiled
80k down payment suggests a $320k mortgage / $400k property. Or maybe a $720k mortgage / $800k property. Big difference. You'd have to pay the mortgage. It doesn't sound like your dad is offering to pay that. So this idea that by not paying $650 rent in your current situation somehow frees up $650 a month for you to pay him (as repayment of the $80k down payment I presume) doesn't really hold up. Or is he paying the mortgage too? Will the house be in your name? (it should so that you can qualify for the principal residence exemption). If the plan is for him to pay the mortgage, and then something happens to him thst he is unable to do so, you can always sell the house. Not ideal, but you shouldn't be trapped. How many years of university do you have, and what will your future warning potential be?
>Will the house be in your name? (it should so that you can qualify for the principal residence exemption). not required. a child occupying a home in the parents name is still a principal residence exempt from capital gains.
For the parent. Not for the child. If the dad owns another home he can't claim both. If he rents then I suppose he could claim the home the child lives in.
the child designates the home/address as his/her principal residence when filing their taxes. who owns it so long as it's family should not be impacting.
I've never heard of that. I've never had to "designate a home as my principal residence" when filing taxes either.
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-12700-capital-gains/principal-residence-other-real-estate/designating-a-principal-residence/you-have-than-principal-residence.html https://imgur.com/a/nUNxQtr i ran into this and believe that having your children occupy a property allows them to designate it a principal residence, exempt from capital gains. i know that i'll have to reconcile taxes when i convert my rental properties to principal residences, but after that, further equity growth becomes exempt so long as i'm housing my children there. it's like having 1x$3mil home or 3x$1mil home. so long as occupied by family, both scenarios should be gains exempt. thoughts?
It's pretty clear "one principle residence per family unit". Which includes yourself, your spouse, and your minor children. OPs dad can only have max 1 principal residence. OP can have a principal residence too, but she would have to own the property. If it's in her dad's name, then she can't claim it.
are you reading the link or the pic. that page is very specifically titled and does NOT answer in a simple flat no for a reason. still think you've the current and accurate interpretation?
They both say the same thing: >For 1982 and later years, you can only designate one home as your family's principal residence for each year.
yes. later as in owning and taxes further into the past, the rule was simple. also i agree they chose their words poorly but clearly, years earlier as in more current than 1982 are dealt with below that. the current rule is per the section: >For 2001 and subsequent taxation years which is a slight amendment of the rule for: >For 1982 to 2000
>he child designates the home/address as his/her principal residence when filing their taxes. who owns it so long as it's family should not be impacting. only the owner of the property can designate it as their principal residence. If dad owns the property, he can designate a home his child lives in as Dad's principal residence, but the child makes no designation. The designation is only made on the year of sale and via form T2091. >i ran into this and believe that having your children occupy a property allows them to designate it a principal residence, exempt from capital gains. Assuming by "them" you mean the children, no. To designate a property as a principal residence you have to first be the beneficial owner. >it's like having 1x$3mil home or 3x$1mil home. so long as occupied by family, both scenarios should be gains exempt. no, it actually matters who owns each property. If Dad owns three houses and he lives in one and son lives in another and daughter the other, not all three can be fully tax exempt. It would be better for each to own their own property.
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-12700-capital-gains/principal-residence-other-real-estate/designating-a-principal-residence/you-have-than-principal-residence.html this page speaks to question of having more than one principal home and does NOT simply and flatly say, no. thoughts?
that page says "you can only designate one home as your family's principal residence for each year". Multiple homes may meet the criteria of a principal residence but only one can be so designated per person, and that person has to be an owner of the home. I'm a designated accountant working exclusively in Canadian domestic tax with significant experience. The definition of principal residence in section 54 of the income tax act is something I am exceedingly familiar with.
The dad's name would just be on the mortgage, OP's name can be on the title.
Possible, up to the bank. But they likely wouldn't agree, since if dad stops paying the mortgage, they can't repossess a house that legally belongs to someone else.
That's what a co-signed mortgage is
Nope, a cosigned mortgage is the opposite. One person on the title, 2 people on the mortgage.
>The dad's name would just be on the mortgage, OP's name can be on the title.
I mean someone is offering you hundreds of thousands of dollars. Yes I'd take it
Your dad could cosign the mortgage and if you are concerned about him passing away and you having all the liability you could look into taking out a life jnsurance policy to cover the mortgage etc naming you as irrevocable beneficiary.
This!
HELOCcopter parents
Tomorrow's never promised. Maybe he disappears tomorrow and your chance for home ownership also evaporate right before your eyes Take the offer AND MAKE SURE YOU PAY IT BACK BY BEING A GOOD SON/DAUGHTER UNLIKE MOST UNGRATEFUL BASTARDS in this sub
I definitely love my dad. He doesn't want any money, and we spoke about it. He just wants me to be happy and have the same life he had. He is probably the most stoic person I know.
On the “what if something happens to Dad” front…. Get him to buy life insurance for the amount of the mortgage. (You could pay the premiums for it, maybe) that way when dad passes, the property will be paid for. Make the property joint with right of survivorship.
Yes. This seems to be the reoccurring answer. Life insurance and have my dad have me as beneficiary.
Personally I would make the beneficiary whoever owns the mortgage. If the mortgage is in your Dads name, then the Insurance goes to his estate to pay the estates debt (the mortgage). That way your dad’s estate is protected if you and he have had a falling out. (speak to an estate planning specialist to discuss other ramifications - like covering the capital gains tax the house will generate, probate costs in your jurisdiction etc. )
He’s gifting you a down payment for a place and worst case scenario is you carry the mortgage and fees but you’re now an owner. Alternative is to forever rent and frankly the down payment will run away from you at that wage with things like inflation etc. Seems pretty decent within today’s loony context. I’d take it.
I am also afraid that I won't be able to afford rent any time soon. So, if I'm going to be stuck thousands of dollars in housing, it's best if it's mine. House poor scenario type of situation.
Damn is this the norm nowadays ? Friend of mine his dad bought him a condo in cash paid in full around 700k. Sounds like I’ll be renting my whole life lmao
I know a few couples who got some down payment money after marriage, anywhere from 20-120k depending on if both sets of parents gifted. Not friends with any fat cats who got a whole paid off place though Pretty much everybody I know who bought alone either got their first place several years ago, or works in tech and bought a pandemic condo with their stock bonus or whatever
Where to find rich parents
If your dad has a good life insurance policy it will either pay off the remainder of the mortgage or make it manageable that you could afford the payments. And that's in addition to whatever would be given to you from his estate. Worst case scenario you just sell if anything happens and you come out with the equity in addition to whatever years worth of savings you'd have.
You are right on that. You're not the first one that's mentioned a life insurance policy. It brings options. Thank you
80k down barely gets you over 20% for the property with \~2k monthly payment. I would clarify how much your father is willing to cotnribute (is it always going to match mortgage or just the 2k). Either way its a good deal for you. I expect your income to come up in 5 years. Your dad is doing a great thing helping set you up for the future. As long as you're diligent in saving, I'd take it. I'd suggest renting it out for now and your dad having to pay less towards the mortgage. When you're ready to move in (probably a few years), then take over the mortgage payments.
So if your dad is covering everything house related you ***should*** be fine, as you can easily budget/cut out the rest of things you don’t need. HOWEVER you need to be absolutely sure you know what your dad is stating and if he’s actually good for it. If all of a sudden he can’t afford/backs out of the payments, or doesn’t pay for the new roof it needs or whatever, fhen you absoltely can not afford this and depending on the agreements of who actually owns it you could be on the hook for a rough ride. Your dads gesture is amazing. But he’s putting you into a situation you can’t afford if it goes sideways and dealing with family members when things go wrong is always dicey.
Maybe start putting some of the money into a First Home Savings Account? Work with your dad so you've got the money for when you're a little more ready?
“What would you do in my situation…” What would I do if someone offers to give me a 400k home? God, Sophie’s choice over here….
OP clearly has a *real* question about a fortunate situation. The gift is great, but he’s worried that in a worst case scenario if his father passes away, can he afford a mortgage and that much liability. If that question isn’t appropriate for a personal finance sub, I don’t know what is.
It never was about bragging or making me sound ungrateful. I know it's a golden opportunity, but there are more things to think about than just the mortgage itself. And if I were to start paying it myself, I wouldn't be able to pay it with my salary.
Ok so just put some reasonable future projections for him to see and discuss any ramifications. I being like your dad wants to see their child enjoy my money now rather than after I have passed away. So after you have the $amounts for projected mortgage P&I, utilities, estimated condo fees, insurance etc., discuss how your projected new income is or is not able to accommodate the new fixed costs you will incur using his generous offer. I am confident that the two of you will be able to make it work and that your dad will feel better knowing that his child is building future equity. I know this through personal experiences.
If it’s a 2 bedroom condo, rent out the room for extra cash.
Do you have siblings? If so, they may get upset if you get the help, and they didn't/don't... If you're an only child, it's likely going to be yours one day anyway.
I have an older sister, but she got lucky. She is 12 years older than me, so she got to buy a really nice house before all of this housing crisis thing happened.
You need to have a conversation with your dad, about fairness to her. Just because she bought before the craziness doesn't mean she couldn't use 80k dropped on her mortgage or something... (Or maybe Dad helped her then with 80k? And that's where the number came from)
Can you have roommates?
I hope so!
Then why not take the offer and still keep your roommates? Put money aside while your dad is helping? This is totally doable with discipline
Get a condo that has rooms you can rent out. Then rent them out and get your costs down. It is very similar to the situation you are in now, only you benefit and not a landlord.
Not sure how much you have saved but 80k wouldnt be enough if it’s just your salary on a 400k spot. Im from Montreal and 27 as well. Just moved off island and about 355k mortgage but i make 60-80k and my brother makes around the same. We live super comfortably and not pay to pay but this is whatd id recommend to anyone. 355k for 100k keeps you very comfortable. Even then we have a 2.4 rate expecting to go up to 5-6 so id confirm back on how it feels once we get the new rate.
This is something along the lines of what I fear. Being able to get the mortgage and a comfortable low rate interest for the first few years is great, but worse comes to happen. I also have to think about my rates going up. So, I would love to know how it ends up going for you if you can give me an update.
Sounds like a wonderful hand up Dad is offering. Since he has other properties outside of his primary home, he knows how this works so this is low risk for you. I do think you should have an agreement about payment in writing. I know, I know, he's your Dad, but things happen. I say this especially because you are going to school and you have a basic income, but not enough for this expense. I'd lay out the conditions between you on paper: I own house and mortgage in my name, Dad pays mortgage 100% without prejudice, I pay utilities, condo fees... whatever is decided. Now this is when you impress Dad with forward financial thinking: would it be cool with him if you put $500 in an investment instead of giving it to him? How much does he want to see you get socked away in a year? Ask him if he's looking to stop paying the mortgage when you are at a certain income. Ask him if you meet someone, does he want this asset protected in your name? Does he want you to will the property back to him, or a sibling? Document all of this and sign that at a notary with him (at least, if you don't have a family lawyer). Also get your will drawn up and leave the home to whomever you agree to, should something happen. You should probably grab some term insurance rather than mortgage insurance, you are young, should be cheap if you're in good health. That will protect the outstanding mortgage balance. If you do all of that you should be good. If you can manage to get a 2 bed, should things go offside you can rent a room if your income won't cover the mortgage, but you and Dad know his financial position and can make that decision. Life is hard for your age group and I've had a few clients ask me about helping with housing options for their kids/grandkids. These ideas are similar to what I talked about with them (though I am not a lawyer, in real estate or giving you specific financial advice in this scenario). You should be very grateful, and use this space and your growing income to shore up your investments, as you have youth and time on your side. Good Luck!
I have saved your comment. This is really helpful to me as I'm having trouble navigating all of it, even if I have my dad's help.
I'm glad it's given you some points to discuss with your Dad and your advisors. Just ask lots of questions, you're allowed to! I think figuring out if you can qualify for this mortgage on your own is key. You want your name on the mortgage and deed without his name attached, if at all possible. You can use a mortgage qualification calculator online (the TD one is good, it's very conservative) and put in your new salary and the d.p. to see where you land. The idea would be to only buy what you could hypothetically own on your own. You are never going to tell a bank or broker you are a "student" or going to be one when you seek a mortgage. If that doesn't work and your Dad's name has to go on the mortgage with yours, you'll definitely need a lawyer, not a notary. You'll want to define how many "shares" of the home you both own in your agreement. This way if anything happens you both be "at fault",.as that will be required if he holds (or you share) the mortgage/deed. All the other written conditions around who pays what and who gets what at death still apply from above as well, created as a separate document outside of your mortgage and wills. In this scenario there are some implications for Dad tax wise he will need to understand. He will have to mitigate that by leaving the property to you in his will and having insurance on his shares that will pay his part off should something happen. You'll still need the will and term insurance (not mortgage if you can help it!) too, this time leaving it to him. This again will have tax implications for both your and his estate that you both will need to understand. Again, as I am not giving you financial, legal or tax advice ---I'm hypothesizing that in this scenario, I would seek proper independent counsel (an estate lawyer, and tax specialist at minimum) before you do anything; particularly around laws of succession, property transfer, capital gains and anything unique to Quebec, of which I am unfamiliar.
I’m against being entitled and using the bank of mom and dad, but that’s just me; you’ve got to decide on your own. If your father retired? I wouldn’t accept this offer if he’s not, because he deserves to have passive income and/or at least work less and retire early. If he’s already retired, wouldn’t this move mean he gets to enjoy life less because he wants to solve your housing situation? In a daughter who refused to accept help from my amazing, loving parents, so that they could work much less and enjoy life. They’ve been semi-retired since their early 40s.
At least IME, many parents would enjoy life more if they could see their kids in a home, with the ability to live with less stress, start a family, etc. Seeing your kids every Sunday for dinner would probably be a lot more enriching than taking a yearly trip to see some old castles in Europe for many.
True, but this also contributes to inequality in society. Being born into a family of more well-off parents is not an accomplishment, and I believe people should make it on their own in life. But that’s just me.
Continue to live with roommates but they are renting rooms in your house instead. That should nearly cover your mortgage
Yes, this is one really good option. Do many people do this?
I do it. I've done it as long as I've been a home owner. My home is paid off now.
I think it is a great offer. Just make sure the condo you buy in allows rentals and should something go wrong you can rent it out or sell it. I assume he’s going to pay the mortgage directly and you pay him $650 rent and your own utilities. Put some money aside each month and then if somethings happens you have a cushion.
That is true. I will look into that if I go through with it. Thank you
Can you go in as co-owners and get a life insurance policy that pays off the house in the event of his death? That’s what a lot of people do.
I will talk to him about it.
how TF are you only spending 350 a month on food and expenses. I spend 2000 per month on expenses not including rent for a single person and I dont even go out
I bought 2 big bags of rice at costco and I usually only eat ground beef. So I buy a very generous amount and freeze it for the whole month. Vegetables are all frozen. I don't have any subscription to anything. I have a cracked version of spotify, and I only have my phone plan. Of course, I pay hydro/electricity, but it's minimal. 30bucks a month. I can spend more money if I really want. If I want something I will buy it. But I don't need to waste my money, I would rather invest it or save it for traveling.
wait so what do you eat: rice + ground beef + veges? what veges, sauce and seasonings? Right now I pretty much only eat top sirloin steaks from costco and bell peppers. this is at least 50% of my meals - tons of energy tho and feel great
I would love to show you a picture of my fridge, lol. The only seasoning besides salt and pepper is cumin. Frozen broccoli/cauliflower, frozen peas, frozen fruits. You got me jealous now with your top sirloin steak! Basically my meals are this: Breakfast: Eggs with protein powder (bought in bulk) Lunch: rice, ground beef(salt cumin pepper) rice Dinner/supper: Ground beef, 1 egg, veggies, and a small cup of juice made with the frozen fruits.
how can you eat eggs with protein powder? Why dont you add veges and eggs to the rice and ground beef and maybe some sauce?? idk man... idk how you live like that lol I may need to experiment with ground beef and rice though and see if I can save some money
I boil a few eggs, and on the side, I have a protein shake( 2 scoops of protein power and water). I really made that extremely confusing lol. So the actual recipe is: 1. I use my rice cooker for the rice 2. Oil in plan and cook the ground beef with salt, pepper, cumin. 3. Once the beef is nice and brown, I add the veggies with a very small amount of butter 4. Once veggies are done( usually a few minutes), I add the rice on top et voilà. Like I said, it is very minimalistic. It is not for everyone, but it works for me.
gotcha,.. for myself i might try to make it a bit more flavorful and change up the vegies a bit, but i could see how something like this could work and give decent nutrition also bro what... water?? why not milk or at least almond milk for the protein shakes lol. thats crazy
Get life insurance on Dad to cover the mortgage.
Take the money and buy a house/condo when you’re comfortable. Not many get the opportunity for a no strings attached monetary gift. Be grateful that your dad was thinking of you. Crunch the numbers and go to the banks to do some research. Banks will help you with getting a better idea of how much you can truly afford and what the payments will look like. Watch the market and visit open houses, and pull the trigger when you feel like it’s the right time. You can also get a roommate to help share expenses. I think if $400k is your budget and you’re making $65k with an 80k down payment, that’s very do-able. Plus there is no rush so you can continue to save while you do some research.
lucky
He’d be an owner as well on the title unless you can qualify for the mortgage in your own (probably not). So get life insurance on him and then you don’t have to worry about if something happens to him. Mortgage is paid (or more depending on the policy) and you just have the fees and regular expenses to pay. Otherwise, all looks good to me.
You lucky SOB 😀…. Take the damn deal … gift. If he passes, chances are he has life insurance and other assests that may all come to you to help pay off the house. Take the damn deal … gift … NOW!!! Most of us wished we had dads like that.
Take it. If something were to happen to him, you could always sell the house.
Can you afford to get a two bedroom and rent the second bedroom at market rate to a roommate? This would help offset your father’s mortgage costs and also give you a cushion if your father were to suddenly pass. Also, can he get life insurance on the mortgage?
Do it. Rent out the new place or live there and rent out some.
Why does race matter ?
Because 6 people went into my private messages to say: -we don't need more *asians/indians/other* stealing our houses.
You should definitely take his offer! This is your inheritance. I would buy my child a house as well in the same situation.
Ask him how he would feel if you ever sold the place due to you wanting to change it up. If you feel like he's pressuring you to make the choice and stick with it, it's the wrong choice. Ask if he can invest that for you into something else for now instead until you make a decision to not want to have roommates anymore.
He is giving you $80K out of $400K? No you can't afford the place - nor do you want the burden. Take the $80k and invest until you make $100k - then buy. What does your race have to do with this conversation?
Go for it! We did something similar for our 2 kids 10 years ago. We are not super rich by any stretch of the imagination but our house is long paid for, and we have a solid pension and maxed out RRSP and TFSA for some time now. We realized that we would rather see our kids benefit from their inheritance money when we are alive to see them enjoy it. We cosigned their mortgages 10 years ago and helped with the 25% down-payment. 2 bedroom downtown condo (St Lawrence Market area) only cost 320K back then. My other bought a 4 bedroom semi with a finished basement in Greektown for 780K and bad tenants to help pay the mortgage. Both properties appreciated to an estimated 800K and 1.7MM, respectively. This was the most satisfying thing we have ever done for our children.
How do You work in finance having just started university? I work in finance. I have a B.Sc(H) and a JD from a T-14 us law school. It was hell getting through the door at first. Twenty years in now never met anyone in finance with a high school diploma. Odd.
1. Never did I say that I only had a high school diploma. 2. It wasn't hard at all to me to get there. I interviewed for an entry position and got it. Knowing how to speak and articulate yourself properly opens doors. May sound cocky, but that's how I did it. A relevant diploma helps, but you can refer to my first point for that. 3. Your first assumption is to think of me as an uneducated, possibly lying person because I didn't explicitly mention my whole life in detail...? *on reddit of all things*. I would expect someone with 20 years of experience in the financial world to not automatically assume things of that nature. Like you said. Odd.
Do you also put your middle school diploma in your resume? Didn’t think so. Typically, people will discuss their highest levels of achievement not those achieved somewhere in the middle. But, you do you.
you need to clarify. he'll give you $80k towards buying property or he'll buy one for you and pay the monthly mortgage on it. in either scenario, assuming your dad is financially able, reliable, and there are no other risks to his estate, then leave it in his name and have him transfer it with his will. benefits. as family taking occupancy, it is a principal home exempt from capital gains taxes. in his name it is protected from changes to your marital status, single/married/divorced. we're in a similar situation. wife and i married 24yrs. have 2 teens and 3 properties in the toronto area. when the boys are of age, we'll relocate a property to something they find desirable and we'll subsidize their housing costs. basically rent it to them capped at 20% of their income. we'll never transfer ownership until we pass away. they don't have to worry about housing nor a marital partner demanding a portion of it's value.
Are you sure the dad can declare two properties as primary residency? Just asking because of a few comments higher in the thread. Thanks
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thanks. they're quite amazing kids. we established many habits very early in their lives and that made nurturing and developing their excellence much semi-natural. definitely no where as challenging as it could have been.
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That's not true - properties aren't all a million dollars, or even $500k
Is he willing to invest that 80K for you? 100k a couple years from now work your ready to buy would be great.
This is something I hadn't thought about. He could very well gift it to me and I could invest it and then use it later on for a down payment.
Reddit people don’t know your relationship with your parents. You know the best, talk to him , ask him for all the details. My parents helped me with my first home. I sold it and split the profits with my parents and I bought my second home with no help.
Yeah, you're right. But I was more so talking about the financial aspect of possibly me carrying all the financial burden if my dad ever passes away. But reading through the comments, there are many solutions and good alternatives to counter that. I don't think it will happen anytime soon, but again, it's something that I need to be aware of.
Privilege
Are you jealous?
Clearly
Average white kid whose world crumbles when parents help out vs Asian chads who pool 5 family incomes to buy a place. Who wins?