Millennials: Should you rent or should you buy?

 

For many aspiring young buyers, the pressing issue is whether to financially viable to own a property. A common self-question asked is the tradeoff between the financial risk of home ownership versus the benefits. However, even though there are pressing doubts, more than half of Canadian millennials already own their own piece of real estate. Not only that, but of the 49 percent who don’t own already, a large majority of them — an impressive 64 per cent — are saving with the purpose of a buying a home. (  Source: Home ownership remains a millennial measure of success: Don Pittis. CBC News, January 6th 2007).
Another motivator for Millennials to buy a home is the desire to put down roots. Canada is a high home ownership society and home ownership is viewed favorably well. Furthermore, the best homes are available in neighborhoods when you can only buy, leaving the millennial that wants to stay renting with a limited choice.
However many Canadian millennials have chosen to stay renters in the cities that they live in and become owners in the income property segment. Millennials see as an investment opportunity owning a recreational property well outside an urban market. According to reports almost two-thirds of Canadian millennials would consider buying a recreational property over the next decade. They also see this opportunity as the key to finance a luxurious life in a city like Toronto, Vancouver and Montreal. ( Source: The Globe and Mail, Priced out of urban areas, millennials opt for the cottage)