10 Jan Why Millennials Aren’t Buying, And How You Could In 2019
Doesn’t 2018 feel like it flew by? With the new year at our door step, it’s an ample opportunity to reflect on 2018, and devise a plan to make 2019 better.
For millennials, the looming question of ‘should I buy a home?’ may be one we ask this year. Especially in Toronto, it’s becoming more and more of a question we’d rather not answer, attempting to evade disappointment.
I share some of the main reason’s why I think millennials are not buying homes right now. And if you’re a millennial, it may be the reason why you aren’t too.
Toronto’s ever rising home prices.
Alright, let’s point out the elephant in the room, Toronto’s home prices continue to climb, with little to no signals of stopping. The factors that contribute to the ever rising home prices in our city can be debated for days (little supply, foreign investors, low interest rates, etc.), unfortunately for us millennials, we have to to face the music.
Most life changing events are happening just about now.
You’ve either just landed your career job (or in the process of changing), got married, starting your family, or even still finding your calling. What ever the reason, fact is, most of our lives are shaped in the years leading up to 30. These changes require some financial tightening for some, and coupled with an expensive real estate market, the portion of income we can allocate to housing starts to shrink.
Fear of being tied down.
In the information age, we are exposed to so much more than our previous generation, allowing us different opportunities when it comes to our career and lifestyle. Seeing the rise of digital nomads, entrepreneurship, and travel, we are becoming more conscious of making decisions that would prevent us from pursuing our aspirations. Unfortunately, having a mortgage seems to be one of these considerations.
With these in mind, it’s not impossible for millennials to become homeowners.
Though the rise of home prices increases in the city core, the surrounding area’s are still reasonably affordable. Depending on your goals and criteria, this could be a viable option, if alterations to your commute or lifestyle are considered. Working with the right real estate professional who can relate to your needs could also help :).
Additionally, as millennials, we should take advantage of the many applications and tools to help us understand where our income is going. We can’t change the fact that many life changing events all happen to occur at once, but we can learn a little more of how these changes affect our spending. A rise in tech have also allowed cheaper and more affordable alternatives.
Most importantly, owning a home has so many benefits for the long term, whether you decide to live in the home or buy as an investment. We shouldn’t be afraid of being tied down, but perhaps be afraid of missing out on the growth.
Let’s make 2019 your year!