Although over a third of millennials have been able to purchase their own homes, there are still a vast number of young adults trying to enter the real estate market. But the current home prices in the market are not fast tracking the process. Instead majority of millennials are being left out of the market or some coming up with alternative means to make payments.
For others, they are still far off financially to buy a home but a new global data shows that 9,000 millennials have plans to buy a home in the near future.
The survey was carried out in nine countries including Canada. The countries included Australia, China, France, Malaysia, Mexico, the U.A.E, the United Kingdom and the U.S. Although the survey was carried out on 1,000 Canadians; the reports however reflected the data from global millennials
Data from the study showed incredible figures most especially people between the ages 18 and 35 in the real estate market.
According to the findings, more than a third of Canadian millennials already own a home while 82% of those who are without homes have plans to buy in the next five years.
However 755 of those intending to buy expressed they are still not financially ready to make down payment. To sum it up, majority of individuals between the ages 18 and 35 say they have not made any form of saving towards buying a home.
Equally, 42% of Canadian millennials that already own homes stated they overspent on their home purchase. This figure is less than the average figure recorded across the nine countries where 56% of millennials confirm to overspending in their first purchase.
Nevertheless, the figures also indicates that majority of millennials entering the real estate market are doing so with the help of their parents with 37% of those survey stating they took money from their parents accounts to make down payments while 21% received help from parents to help them with other expenses.
21% of millennials also claim they are residing with their parents for the meantime to be able to save up for their down payment.
The trend of parents helping their kids enter the housing market was common across the nine countries surveyed.
According to Larry Tomei, HSBC Canada’s head of retail banking stated that it’s sad that this trend cannot be avoided given the current housing situation. Hence millennials should be mindful about their financial decisions before and after buying a home.
It has become very essential for homeowners to have vibrant financial ideas as home prices and the cost of living in Canada continues to rise.
But the current real estate makes millennials to consider making great sacrifices to own a home. While some might consider cutting down on their leisure expenses, buy a smaller home until they can afford a bigger homes or buying out of their preferred area, some millennials are considering to delay having a family, rent, move in with a family member or buy with a family member or friend.
All these various alternatives millennials are coming up with juts goes to show how interested they are in entering the housing market.