Millennial are not giving up on the dream of owning a detached home, despite national prices soaring to record levels, buoyed by average prices that routinely reach seven figures in hot markets.
Why do a majority of millennials want to buy a crazy expensive detached house in Canada?
Part of what also drives them is this idea that real estate will always be a good investment. The survey, which was conducted online by Ipsos between May 31 and June 2, 2016 and is considered accurate to within 3.5 percentage points 95 per cent of the time, finds 77 per cent of Generation Y thinks real estate is a good investment. A year ago only 70 per cent felt so.
Life is tough. It's tougher when you're stupid.
If you're an average 25 years old, then you probably don't have a lot of savings. To buy a house, you'll have to borrow money from a) Dad, b) Mom, and c) the bank. This means that even with a nice job you'll have basically zero money left for savings. All your cash will be going into your investment house. Your mortgage will be done when you hit 50.
You'll be half a century old with no money. You'll have a house which you cannot eat. This is a very bad idea.
I'm not saying don't buy a house. I'm saying: don't buy a house when you have to put all your current savings and your future 25 years of savings into the monstrosity. House prices do fall. Less than a decade ago, they crashed by 30% in the US. That would suck when your one and only "investment" collapses in a similar fashion.