Buying a place for your children is a good alternative to paing thousands of dollars towards residence fees or rent. Here’s the math. Rent $500/month=$6,000 a year=$24,000 over 4 years of school. This money could go towards a mortgage instead as an investment for you, as opposed to paying the landlord’s mortgage.

We have owned a 3 bedroom townhouse condo in London for the last 6 years, first housing our daughter and later our son who is graduating later this year. By renting out 3 bedrooms to other students with 1 extra bedroom in the basement, our kids actually lived rent free. With summer jobs they were also able to avoid any student loans and avoid debt repayment.

It has been a great investment for us. Every year, even with improvements, all our costs were covered while the property has appreciated and the mortgage is now less than half the original amount. Our equity is quite substantial. Even with a capital gains tax we will make a nice profit in addition to not having to move(with your help)every summer either.

Over the years we have arranged many mortgages like this. Some are parents and some are professional investors who buy properties suitable for student rentals. Did you know that all student rents are guaranteed by the parents and cover the full year not just the school year?

For the inside track on buying and financing an investment property for your child’s post secondary education, please call us.

Don Cherry is on the move in Fergus. Spot him and fill out a ballot to win one of many prizes from local businesses and grand prize, a one week summer vacation at beautiful ‘Lighthouse Lane’ log cottage in Port Elgin.