Real Estate: 34% of Y’s in Canada already own
Three out of every 10 in Canada are already homeowners, according to an independent international survey of residential property, which tends to defy the popular belief that this generation can not buy a condo or a home.
Of course, the challenges of people born between 1981 and 1998 are real when it comes to ratifying a mortgage. The historic rise in house prices in the country over the last two decades, especially in large cities, is pointing the finger, recalls the study carried out on behalf of the HSBC Bank, broadcast Tuesday.
What’s more, wages grew much more slowly over the same period, and last year the Trudeau government introduced new mortgage rules that tightened access to homeownership.
As a matter of fact, according to the HSBC study, up to 82% of the Y’s who are not already owners are considering buying Five years.
Research focused on the attitudes and behaviors of over 9,000 Generation Y people from nine countries, including 1000 from Canada. Australia, China, United Arab Emirates, United States, France, Malaysia, Mexico and the United Kingdom are the other countries observed.
“This study debunks the myth of the impossible dream of home ownership for the Y, in Canada or anywhere in the world,” said HSBC Chief Executive Larry Tomei.
While 34% of Canadian Y-owners are already owners, the average is 40% internationally.
Thanks to parents
Because real estate is expensive, parents are often called back when it comes time to buy. For example, 37% of Y owners in Canada received a boost from dad or mom and 21% squatted in the family basement to make a down payment.
Of the Y who have not yet bought but are planning to take action over the next 24 months, 27% have no clear idea of their overall budget and 53% Of approximate figures. For their part, the Ys who bought in the past two years have cut their budget by 42%. This is better than the global average of 56%.
Almost three out of five in Canada are willing to make sacrifices in order to own their homes. And to do this, they are ready to slash spending on leisure and outings. Thirty-seven percent of respondents even consider buying a smaller property, but rather to their liking, rather than passing their turn.
Thirty percent of the Ys could even put off their plan to found a family in the Greek calendars to realize their dream of accessing the property.
“Y’s in Canada are eager to become homeowners, but the results show they have significant barriers to overcome: more than two-thirds (70%) say they have not saved enough to make a down payment, and Have no exact budget in mind, said Larry Tomei.
“In reality, buying a property is a real challenge. And I can not help but stress the importance of having a good plan and getting the necessary financial support and advice before and after buying a property. “