XLR8 Realty would like to share this interesting article with its clients about Ontario young homeowners receiving financial help from older parents and other members of their families. The lending options in Canada have not kept up with the costs to purchase and retain housing in Canada for many young would-be homeowners.
Based on a Data poll conducted by the Ontario Real Estate Association, 41% of young homeowners aged from 18 to 38 received financial help from their parents with their purchase in Ontario. According to the data, out of 2,000 parents, 72% gifted money to help with the down payment of the house. The total value of the gifts comes up to $73,605. 38% of parents who gave financial help to their children paid for their mortgage.
In the last year …
GTA has seen the average price of all property types rise up to 29%. Which makes the average price of a home $1.2 million. As stated by the TRREB, the average price is expected to rise even more throughout this year. A raise is also expected in the interest rates. On the basis of the data, 71% of future homeowners in Ontario are still looking forward to purchasing a house. However, 55% of them don’t think they will be able to buy a property in an area they would like to reside in.
The CEO of OREA, Tim Hudak says
“ to bring affordability home for young Ontarians, we need to continually increase housing supply and choice in the market, across the province”.
There are a lot of challenges surrounding housing affordability currently happening in Ontario. In fact, it is mainly due to the lack of supply, and an increase in demand for housing that costs have escalted so dramatically. This is a very nonorganic growth and has been misleading for a lot of investors who have entered into housing investment as an alternative to stocks, bonds, and gold.
If you would like to learn more, visit our friends at CP24.
