While average home prices continue to rise in Toronto and the GTA, millennials remain optimistic on the topic of home ownership, for fear that if they hesitate to take the plunge today, by tomorrow the opportunity will be lost. Millennials have only seen the market go in an upward direction, and the notion of 'missing the boat' is what's driving them to seek alternative routes to enter the market.
So how are they doing it? If prices are steadily on the rise, and the cost of living is somewhat unattainable, when you look at the average income for individuals aged from 18-34, just how are they going to afford this investment and all that comes with it?
Alternative Home Ownership is the key, and millennials are catching on.
While this strategy comes with its fair share of risk, pooling resources may be the only way for some individuals to even consider entering the market. Two (or more) parties, who would otherwise be unable to obtain financing individually, are combining their funds and splitting costs right down the middle, essentially making this process easier and more affordable.
The idea of commuting becomes more bearable when you consider becoming a homeowner.
Those who are opting to leave the city and head for other parts of Ontario are experiencing signifcantly less competition, more inventory, and lower prices.
Intent to Rent
Finding a property that has rental potential is key. Whether you rent out the entire space or just a spare room, having a tenant decreases your expenses while increasing capital.
Buying the Future
Right off the bat, pre-construction homes are priced lower than a comparable resale property. While your property is under construction, you’re able to save a few bucks and by the time you’ve closed, your property has already increased in value!