The Bank of Mom and Dad has skipped a generation, with parents now buying houses or condos for their school-aged children or grandchildren, according to a report in REW.ca’s sister publication Business in Vancouver.
“At the rate things are going, people are afraid,” said Kristine Skinner, a financial adviser with North Vancouver-based credit union BlueShore Financial, referring to recent rapid price gains in residential real estate.
“They’re actually buying revenue properties today with the intent that the values will appreciate and those properties will be transferred to their children as adults.”
Skinner said it’s common for her clients to help their adult children with either a gift or a loan of between $200,000 to $500,000 to help with buying a home, often in the same neighbourhood.
However, buying property for young children is a new phenomenon, Skinner said.
For the full story from Business in Vancouver, click here.