Generation-Y wants it all!

They are younger and most earn less than other homebuyers but their expectations and demands are much higher. This is the new world of the ‘first-time buyers’.

Generation-Y want it all, and want it today. And that includes a house and not just an entry level condo. A new report by the CMHC shows that this generation is not willing to wait around to get on the property ladder. Almost two-thirds of first-time homebuyers are now under the age of 35.

I have encountered many of these buyers at either recent open houses or through mortgage brokers. Many are now eager to buy with over 30 per cent and wanting to make the big purchase within the next five years, compared to 19 per cent of repeat buyers.

And while their plans are big, their pockets are not as much and hence the growing reliance on parents to help out with the down-payment.  Compared to other homebuyers, nearly two-thirds of first-timers have household incomes of $90,000.

I find that a lot of first-time buyers, and more so young couples, save a lot for their own down-payment. Obviously, there are those that need help but those who want to be like their peers in terms of house ownership are willing to sacrifice to achieve that.

While conscious, this generation of buyers are not always realistic. Unfortunately, many of their expectations do not match the reality of the market. Many buyers are set on a number of neighbourhoods where their family and friends live and are willing to over-stretch themselves financially to attain that. I also believe sellers need to be prepared for an information hungry generation of buyers.

In terms of property choice, while most favour single-detached houses, they are also more drawn to semi-detached and row/townhouses compared to repeat buyers.

 

Are you a first-time homebuyer? Need some mortgage advice? What are your real estate options?

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