More People Owning Multiple Properties are Under the Age of 35 And — Here’s Why
Monday Jan 17th, 2022
The GTA has been a hotbed for high-end home sales and prices have been soaring. More people are buying homes and properties in the GTA than ever before. As an expert in real estate investing, I know why.
As the millennial generation enters their 30s, they are increasingly entering the phase where they can afford to purchase more homes. With hope on the horizon the new generation, especially those under 35, changed the game — they are now able to afford their own homes in this region because they have made smart decisions and saved accordingly.
In Toronto, millennials are now the fastest-growing segment of home buyers. By 2019, they made up more than half of all Torontonians. Home ownership rates among those aged under 35 have grown from 34 per cent in 2003 to 45 per cent in 2016.
A recent study by the Toronto Real Estate Board (TREB) found that we can attribute the uptick in home ownership among millennials to two key factors:
· The GTA has seen a significant increase in housing supply and affordability, and;
· The millennial generation is more stable than earlier generations, both financially and emotionally.
There are many reasons why the GTA is fast becoming a hotspot for young people looking for homes. One reason is that it has one of the most robust labor markets in Canada with median salaries that are higher than anywhere else in the country. Many young people have been able to save up enough money from their high-paying jobs to buy their first homes.
The other reason is that there has been a shift from traditional lending practices, which usually require higher down payments and larger monthly mortgages, to more flexible ones.
The one-time $25,000 rebate provided by the provincial government in 2009 to all first-time buyers was a major contributor to the shift in ownership. The rebate helped stimulate demand for housing and reduced house prices. The provincial government also introduced the First-Time Homebuyers’ Tax Credit (HBC), which is a nonrefundable income tax credit for residents of Ontario who purchase their principal residence and claim the HBC.
Another contribution is the higher wages and lower interest rates. However, this does not mean that people will be able to buy a house as soon as they start working. There are a few other factors that come into play such as income levels and housing prices.
That’s why having a plan is crucial. In this day and age, planning is your key to success – and it’s my job to strategize to maximize. So if you’re in the market to buy your first house, take a moment to talk to me for free, and let me help you make the right moves.