GTA Home Ownership Options Left For Millennials in 2017

2016 was a ground breaking year in the Canadian history of real estate where prices increased as much as 20% in most of the regions of Ontario. Majority of the families with a dream to own a detached home had to work hard to win a house in the suburban regions of Toronto & most of them also ended up paying a lot more than the asking price. Toronto market was surprisingly no different than its suburbs.

Unfortunately, Millennials (18-34 years old), many of them first time home buyers were the once affected the most in last couple years. While the dream of owning a detached home in GTA in phasing out for them due to rising cost of ownership, 2017 is coming up with a little bit of relief for millennials who still have a big market of condominiums to tap into which is attracting a lot of buyers year by year. Effective 1st of January, 2017 Ontario as also doubled the First Time home buyer’s land transfer tax rebate to $4000 now which will boost the first time home ownership. All details are provided at www.firsthomerebate.ca.

The young generation today is left with options to buy condominiums in their preferred location or search for a starter 2 storey homes in suburban region only where property age would range about 15-20 years or more but still pricier than a decent size condominium in the same neighborhood. Since the free hold market pricing is soaring year by year, one thing can be taken for granted is, that government will not let it slip into the unsafe zone. Several mortgages rules were introduced by federal government in fall of 2016 while more are anticipated in 2017 to keep a check on the rising real estate market as well as the affordability of the buyer. 2017 buyers will surely feel the heat while qualifying for a larger home so most of the demand of millennials will be pushed into the market of condominiums automatically.

One common characteristic of the millennials is that they prefer to avoid the commute to work or keep it as short as possible. Dec, 2016 average price from TREB for detached home in Toronto region was $1,286,605 whereas Freehold town was $871,983 and condo apartment was $466,592. So when we consider affordability, most of it is slipping away from the generation of millennials as discussed earlier. Developers in Toronto region are aware of the demand but Toronto condo builders still can’t keep pace with demand which reaffirms that there is still a long way to go before we consider saturation in the condo market.

Many of the buyers who were in line to get hold of Freehold units last year but they could not purchase due to multiple biddings wars will prefer to settle down in condominium apartments in 2017. They will feel accomplished being a home owner by living in a modern urban styled high rise facing the city or even the lake. Not to forget other factors such as continuous influx of people due to immigration, Donald Trump effect, growing job market in Toronto will continue to push the demand for housing in the greater region of Toronto.

Pre-construction condominiums are supposedly to attract a lot of millennial population this year as well. This new generation knows very well how to save money. The spread out deposit structure actually make it more convenient for a lot of young investors who dream to own multiple properties in their life time. Most of these projects portray positive cash flows as condominium market is still within reach of an average investor, in order words; once acquired these properties self-sustain making it highly lucrative from investor’s point of view and young generation is always in look out for those opportunities.

Millenial is a smart generation in general & they will find their path to home ownership irrespective of government intervention or changing market trends.