Compared to previous generations, being a 20-or-30 something isn’t what it used to be. Thanks to factors like an increase in health care costs and soaring tuition fees, individuals in their 20s and 30s now have a higher risk of debt and financial troubles. And today’s salaries aren’t helping: millennial salaries are lower on average than what Baby Boomers earned after they left college. All of these contributing factors mean many young people find themselves in a less financially secure place than their parents were at the same age.  It isn’t surprising that this younger generation doesn’t have the debt-to-income ratio that allows them to make major purchases.

There are few options when it comes to helping generations X, Y, and Z as they come face-to-face with the housing market. While helping them rent an apartment is an option, it might be a better investment to buy a condo.

If the timing is right and you are ready to invest, buying a condo is a wise choice — and doing it on behalf of your child can aid in alleviating the financial burden of finding a place to live. With a condo, you can give the next generation a leg up, help them to establish themselves, and teach them to prioritize their responsibilities. Plus, a condo is an excellent first step in the world of home ownership. What’s more is that you can choose different ways to offer them financial assistance for a condo, such as down payment help or co-signing a loan.

If you want to buy a condo for your child, here are some things to ask a financial planner or mortgage professional before you pick up a pen.

1. What are the Tax Implications of Buying a Condo?

If you have the cash on hand to give your child (or children) for a down payment for a home, you should inquire about the tax implications of the gift. As of 2018, each parent can gift up to $15,000 to their child with no tax burden. You may also donate the same amount to your child’s spouse (if applicable).

If you want to donate more, talk to a financial advisor about the tax implications of your monetary contributions toward the condo. In cases where you’re buying the condo outright, you’ll need to navigate the second home tax laws for your state. You typically can’t take the same tax deductions for a second home that you can for your primary residence.

2. Will I Be Legally Responsible for the Mortgage?

Your three options for helping your child buy a condo are: donating the down payment, co-signing the mortgage, and buying the home to rent to your child or to let them live there cost-free.

If you gift the down payment and walk away, you’re free of responsibility should your child default on their mortgage. But if you co-sign the loan or finance the condo in your name, you’re held accountable for the mortgage if your child doesn’t pay. You should consider how responsible and financially-capable your child is before you agree to put your name on the paperwork.

3. How Can I Offset Some of the Costs?

As a contributor (or even owner), you have a few potential ways to help offset the costs. If you buy the condo in your name, for instance, you can charge your child rent. You can also rent out additional bedrooms for income if your condo association allows you to do so.

If you co-sign the mortgage with your child, you’re entitled to split the equity with them upon the sale of the home — depending on the agreement (and be sure it is in writing). You have the option to agree with your child to get paid back upon the sale of their home, even if you only contribute a down payment.

Talk to your advisor about other savvy ways to recoup some of your initial costs, including tax credits and write-offs.

4. What Are Other Fees Associated with a Condo Beside the Mortgage?

Unlike single family homes, condos usually have homeowners association (HOA) fees on top of mortgage costs, and a condo may have higher mortgage interest rates. On the other hand, with a condo, you’ll save on maintenance costs like roof repairs and plumbing fixes because they are the responsibility of the HOA. Ask for a copy of the HOA covenants, conditions, and restrictions (CC&Rs) in advance, so you know what homeowners are responsible for before making an offer on a condo. The HOA fees tend to be higher in condo complexes with high-end amenities like swimming pools and media rooms.

You’ll need to sort out whether you or your child will pay condo fees in advance — and bear in mind that HOA fees will factor into how much money you will be approved to borrow from a lender. You should also be aware that you are also legally responsible for the HOA fees if you sign on the mortgage, and a lien will be placed on the property if they are not paid.

5. How Can I Mitigate the Financial Risks to Myself?

The most pressing issue of buying a condo for your child is how you can mitigate the risks to yourself. While it’s generous to help, you don’t want to do so at the expense of your retirement. Ask a financial advisor how much you can realistically afford to invest in a property and whether you should donate a down payment or put your name and credit on the mortgage.

The easiest way to mitigate risk is by sticking to a gifted down payment without further commitment. Choosing to co-sign the mortgage instead could result in bigger risks, especially if your child (or even you) cannot pay the mortgage.

Helping your child with living expenses is a great way to give them a foundation and teach them about home ownership. But don’t forget your responsibility to your future. Consider whether you feel comfortable loaning the entire amount, buying the condo as a second home, or assisting with a down payment.