Home-ownership in Canada is highly placed in the values of Canadians, however owing a house in this generation is proving to be difficult for most young adults. This is partly because of the high rising home prices which hinders many from entering the housing market.
But it is comforting to see that first-time buyers are not letting high home prices ruin their dreams of having their individual homes. Reports from the Bank of Canada in 2013 suggested the average first-time home buyer was 29 years of age. This late age of first-time buyers is contributed by various factors ranging from people delaying to start a family, to spending longer time to save for down payments.
Although reports form Genworth MI Canada suggest the average first-time buyer in Canada buys a home worth $316,100, in reality it all boils down to the particular are one decides to buy.
Home prices varies in various cities: in Toronto the average home price is $408,300; Vancouver $506,500; Montreal $237,000 but taking a look at statistics the average amount first-time buyers make as their down payment is $50,576.
Housing price in recent times is taking a large chunk of people’s expenditure which leaves condos to be the most preferred choice among first-time buyers as it is more affordable than other home types. Buyers can later save up to buy bigger homes.
Regardless of the growing high home prices trend, one fact which is still unchangeable is that home-ownership is a financial investment and a lifestyle. Owning a home as investment is very tangible as owners get to control how they can increase their gains or values.
Young adults that are still finding it difficult to enter the housing market are researching more to find other available options to aid in their homeownership journey.
However in Canada, it is advisable to enter in the real estate market when one feels best and well prepared.