While many Colleges and Universities require that first year student’s stay at campus dorms for the first one or two semesters, I have noticed that a number of individuals are purchasing homes or condos for their University age kids to live in. They believe that the increased value of this purchase will offset the costs they would have paid for rent or dorm fees.
So, how is this possible? And, how much do I need to have for a down payment?
A number of years ago a program was made available through mortgage insurers in Canada for individuals to purchase a secondary residence with as little as 5% down. The mortgage can be amortized for as much as 35 years and the mortgage insurance premium is the same for a primary residence purchase.
Why would I do this? Continue reading
To my knowledge buyers of a secondary residence must take possession before April 29th, 2010 if the wish to purchase it with only 5% down. After that, the requirement will be 20%. Pitter Patter!