How millennials are finding homeownership

How millennials are finding homeownership

A survey of 9,000 millennials in nine countries reveals some insight into how this generation is fairing breaking into the housing market. The survey done by HSBC revealed millennial’s attitudes and behaviours toward home buying, renting, and financing across Canada as well as the United States, Mexico, Australia, the United Kingdom, France, China, Malaysia, and the UAE.

Interestingly, the results revealed that slightly more than a third of Canadian millennials (ages 18-35) already owned a home (compared to 40% globally). Among those who did not yet own a home, 82% planned to purchase one within the next five years. This is a little higher than the 70% of Canadians who were surveyed across all generations.

Surprisingly, 73% of Canadian millennials surveyed who said they plan to buy soon admitted they haven’t yet started saving, and 25% said they haven’t yet planned out any sort of budget. Even among those who had purchased a home within the last two years, 42% admitted to spending more than they had planned for.

Also, according to the survey, millennials are beginning to redefine the meaning of home as they become both our place to live and our place to work. In fact, an entire 48 percent of Canadian millennials already work from home compared to only 29 percent of baby boomers.

If you’re a millennial looking to purchase a home in the near future, here are 6 helpful tips and strategies you can start doing now to get your dream home sooner.

1.Invest in your future. Set up a monthly deduction from your paycheque into a Tax-Free Savings Account or Registered Retirement Savings Plan to steadily accumulate the necessary funds for a down payment. Note: the home buyers plan is available through the RRSP for first-time homebuyers).

2. Find a second source of income. Consider working a part-time job to add a little extra cash to your savings. A little can go a long way, especially if you give yourself enough time.

3. Cut back on everyday spending. As hard as it is, minimizing miscellaneous spending and unnecessary shopping really is the most effective way to save money. This could be riding a bike to work, bypassing your favourite shopping stores, or even just skipping the morning Tim’s and making coffee at home. These little purchases could make all the difference to your down-payment savings.

4. Consider purchasing the home with another person. Buying your first house is a lot more feasible when you do it with a friend or family member to split the payments. \

5. Plan a budget. It is important to take the time to sit down and consider all of the costs of buying a home. Look into mortgage calculators to figure out exactly how much of a mortgage you’d qualify for. Also, don’t forget to consider one-time costs that come with buying a home, like fees for mortgage insurance and an inspection.

6. Last but not least, get advice from a financial advisor, trusted family, or even friends who have already purchased their first home. Anything that offers you insight into the process of buying a home will be a benefit to you in your journey towards your dream home.