Félix et Camille have recently graduated and landed great jobs to kick off their careers. They’ve been together for over a year—but they still live at their parents’ homes. It is out of the question that they change living arrangements any time soon. And when they do decide to make the leap, they’ll probably opt for an apartment.
Yasmine and Jean-Philippe graduated a year ago and they have been together for two years. They’re eager to buy their first home near work. They hope to move soon because they crave freedom.
Are you more like Yasmine and Jean-Philippe or Félix and Camille?
If you answered “Yasmine and Jean-Philippe,” you are a part of the vast majority of Generation Y (also known as the millennials) that are looking to buy a home (86%). Of course, dreaming of owning a home and becoming a homeowner are vastly two different things. According to a study conducted by the CIBC in 2016, 42% of millennials rent and 21% still live with their parents.
You read correctly: only 1 out of 5 people in this generation still live with their parents. This is a far cry from the boomerang-generation myth whereby kids stick around their parents’ abode for years on end. Don’t forget: many millennials are in their early twenties.
Why should you stay with your parents for as long as possible?
Parent-child relationships have greatly evolved over the past few years. In fact, parents often become our friends! Naturally, kids don’t share the same day-to-day with their parents as they do with their friends, but parental authority has taken a backseat—which is quite different than parent-child relationships decades ago. Today, staying with your parents no longer means you’re a failure. Far from it. Oftentimes, young people stay with their parents to give themselves enough time to find a stable job. What’s more: many millennials prefer having their parents for neighbors rather than complete strangers. This is why a lot of Gen Y’ers enjoy staying at home rather than renting an apartment.
Another factor that incites young people to remain with their parents: it’s much less expensive to stay with Mom and Dad than pay a rent or mortgage. There are a lot of other benefits: electricity, heating, laundry room, cable, telephone are included. Oh! And a few meals and a car, too!
Why buy a home in your twenties?
You can never be too young to buy a home or condo. If you have a stable job, a downpayment, the ability to pay a mortgage and the willingness to start off on your own, why wouldn’t you want to become a homeowner? The decision to own a home is a personal choice. In fact, 59% of Canadians indicate that their home gives them a sense of freedom. And it can be an exhilarating feeling to start a new stage in your adult life!
From a financial standpoint, buying a home is a long-term investment as property rarely lose value over time. Imagine no longer having mortgage payments at 45 years old! And owning a property enables you to easily gain access to credit, such as a home equity line of credit, which can help to purchase a rental property, travel, buy a cottage, etc.
Buying a home does entail extra responsibilities, but that still doesn’t stop 85% of Canadians to think that owning a home is important. What’s your take?
Keys takeaways
- 86% of millennials think that owning property is important.
- Buying a house is an excellent long-term investment.
- Becoming a homeowner gives young people a sense of freedom that they crave.