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Will millennials be able to afford their homes ?

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Young Canadian | 18 Jan 2016, 07:11 PM Agree 0
Hello everyone,

I am new to this forum, and eager to learn more about the real estate sector and everyone's input as well.

I am turning 23 years old this year, and currently employed.
I just finished university, and living at home. I am paying my fair share to the family by subsidizing the general living expenses.

The price of a home is beyond my reach. However, should it be a goal for me to have a mortgage before I turn 30 ?
Some of my friends, whom are 28 or 29 - are purchasing home.
Although I do not know the exact price, they complained that the condos are tiny; but the mortgages are enormous.

I have read financial advice from people who advise me to rent. Currently, in the short term, I also see renting as the best option.
Some other people advise me to have a home, because it is an investment.

What is your input ? Is it smart to have a mortgage ? Is renting the future ?

Thank you very much, I appreciate everyone's input. I will do my best to respond.

Cheers !
  • Chris Jauslin | 25 Jan 2016, 10:24 AM Agree 0
    Hello there,
    Overall its always a good idea to have a mortgage. When you pay a mortgage, on every monthly payment, you are paying back yourself a portion of your property, in other words you are getting part of your money back (principal) to your pocket. That means in time you will build equity, as time passes you will own more and more of your property, and owe less to the bank. That's not the only benefit. You will also have your property appreciating overtime, nowadays appreciation rates range about 5-8% yearly.
    On the other hand renting will just see your money going down the drain every time.
    Three elements to keep in mind for a mortgage:
    1) Credit: Get yourself at least 2 credit facilities (credit card, small mortgage, etc) and start paying on time and consistently
    2) Down-payment: As low as 5%
    3) Income: Your income level will also determine your affordability

    Just my two cents
  • | 25 Jan 2016, 10:26 AM Agree 0
    *Meant to say "credit card, small mortgage, etc
  • | 25 Jan 2016, 10:27 AM Agree 0
    *small credit (corrector keeps changing the words)

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