The next generation is often said to be changing the economy and investing differently than their parents. However, a new survey finds that millennials in Calgary are investing in residential real estate at a high rate. In fact, more of the city's younger population are homeowners than their counterparts in any other part of Canada.
Millennials in Calgary have been living with parents to save for a downpayment and then buying their own homes, according to experts. Besides the practicality of purchasing residential real estate instead of renting, affordability has made this an option for young people in the region. Unlike cities like Toronto and Vancouver, downtown housing is within reach of younger, financially-savvy Albertans.
However, this strong investment from younger populations could be at risk with certain changes in Alberta law. The study warns that new mortgage rules could make it difficult for individuals in the millennial age bracket to break into the market. The rules, which will require larger down payments, thus forcing people to save more before jumping into home ownership. However, some advocates of the change say it will drive more security in homebuying decisions.
The economy is also a factor. Changes to job prospects in the oil and tech industry can also affect investment for all ages. The stability of the Calgary real estate market is also important for the trend to continue.
Buying a home for the first time is not only a serious financial decision. It is also a sizeable legal undertaking with many regulations and liabilities to consider for buyers and sellers alike. Prospective home buyers at any age should direct legal questions to an Alberta attorney with experience in residential real estate.
Source: CBC News, "Calgary's millennials own more real estate than those elsewhere in Canada, Royal Lepage survey suggests", Stephen Hunt, Aug 18, 2017