When I talk to millennials (those born between 1980 and 2000) their number one concern when it comes to property ownership is affordability. To be fair, they have a lot of legitimate financial challenges ahead. A volatile labour market, high demand for real estate, and rising property prices in major urban centres combine to make it difficult for this new generation to buy a house at an early age. However, a willingness to compromise on location, strong financial prudence, and knowing what they want in a home can go a long way towards helping millennials purchase the perfect house for them.
Looking outside of major metropolitan centres could save millennials money if they are being priced out of property. Toronto real estate prices are soaring and many are predicting the market will not decline for a while. Buying homes in developing cities, like Guelph or Kitchener where prices are cheaper, can allow you to buy a larger house than they could in a big city. It’s also important to realize that Toronto is just one city in the province in which to live. There are many other great cities and towns in Ontario like Cambridge, the home of Dewar Realty.
Being aware of personal finances is essential for millennials entering the property market. While it’s generally good to own a home earlier, as property owners can begin to build equity and take advantages of tax deductions on mortgage interest, knowing how much home a purchaser can afford is important. A trip to your bank, or a sit down with a mortgage broker, can help you sort this out.
Selecting the right property can go a long way in saving millennials from having to move again in a short time. You should try not to get too emotionally attached to a vision you have of you first home. Instead, you should look for property that suits your immediate and future needs. A good piece of general advice for all home buyers is to ensure a home inspection has been completed so that you’re aware of potential maintenance or renovation work that will need to be done on the property. When you’re happy with a location, millennials should try to avoid getting involved in costly bidding wars (if possible) that can skyrocket the price of a home. There will always be more properties to look at and blowing money allocated to other expenses will set you back in the long run.
While home ownership is a tricky proposition for many young buyers today, with a strong understanding of their finances, knowledge of what they’re looking for in a home and a willingness to compromise, millennials will be on the way to owning property. Qualified, expert advice from a real estate broker will go a long way in helping with your real estate decisions. Contact us at Dewar Realty in Cambridge, Ontario today for expert assistance with your next property purchase.Posted by Greg Dewar on