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While Boomers may have the most disposable income in our current world, Millennials are the next big thing when it comes to home ownership.
This controversial generation called Millennials (born approx. 1981-1997) are a huge factor in the shaping of our current housing market. While they have yet to hit their peak earning years, they have hit that age and stage of life where the thought of being “home owners” is hitting hard and that is affecting the inventory. Unfortunately, for most buyers in this generation, the price range they are targeting is always in high demand and as the supply ebs and flows with the seasons and the world economic status, it can be harder and harder to find affordable options. For a generation that is already stretching to their financial limits with increasing debt and housing prices, the growing number of “home-buyers” in this age range is creating a snag in the housing market.
Their is a great desire to become “home owners” among Millennials and though condos are all the rage in major metropolises, many Millennials still seek out the dream of a single family home. The struggle is that, in markets where there are jobs (often larger city centers), housing prices are as high as the condo towers that litter the city-scapes at sunset. This conundrum leaves many buyers, Millennials included, to reconsider what it means to be a home owner these days, often forcing them to broaden their horizon of options. More and more, condos and townhouses are becoming the “norm” for a “first home”.
Alternatively, many buyers are having to consider the “income suite option”, which means narrowing the search to those properties that have legal/illegal suites already existing or at least the potential to create a suite. Another temporary option is to take on roommates for a period of time, which means finding a home big enough to have a spare room or two that can be rented out to friends or family to help with the mortgage payments. Although it may not be ideal forever, having a tenant or roommate often means they are paying a substantial portion of the mortgage, plus, if you created a suite, then you likely forced some sweat equity into the long term appreciation and value of your property. With the help of some rent money and potential equity gains, one can save enough for a down payment for the next home!
Becoming a homeowner may seem flashy and glorious, but it’s a huge decision that should be considered thoroughly before taking the leap. There are, of course, the costs of the home itself, but there are also what are called “closing costs”, such as legal fees, property tax, property transfer tax (in some provinces), utilities, sometimes strata fees, and then the ongoing slush-fund or contingency for repairs and maintenance. What does this all mean? It means that it is important to set a realistic budget and shop within your means so that you don’t end up ‘house poor’ and stressed to the limit on your first home; talk to a mortgage broker and ensure your credit score is good (no impulsive shopping for boats or cars while you are house hunting!).
One of the most important people in your search for a home is your real estate agent and I recommend that you ask your friends and family for their #1 picks. Grab a coffee with each agent and interview them; who communicates in your style and who you feel most comfortable working with because, after all, they are going to guide you in spending several hundred thousand dollars, so you had best trust them!! Some agents are interested in selling you anything while others want to make sure that what you buy is a good fit for YOU and your circumstance.
Owning your own home is a marvelous thing— and the stronger your power team when finding that home, the better!!!
Connect with me today via text, email or call if you want to chat real estate today, tomorrow or any day!
