I’m sure everyone has dreamed of owning a house or property. It is one of the indicators of having a stable income. However, the current generation of the working class has accepted their fate of not being able to afford it. I’m talking about the millennials. They have a very different mindset and think they will rent forever.
In Canada, around 3.4 million people consider themselves forever renters. Or 1 out of 5 Canadians wishes they could become homeowners but believe they could not. Statistically speaking, women are more likely to consider themselves to rent forever than men. We also have to take note of the ongoing global pandemic, which affected the employment status of some people. It became an added hindrance to owning a home or property.
So how can we encourage this generation to dabble with property ownership? Can we still change their minds, or is there a chance to attain their adulthood goal? Should landlords and leasing agents address the growing need for rental properties?
Most people who want to own a home are hesitant because they think they can’t afford it. To own a property in Canada, they should have the budget for the downpayment. Some properties need at least 5% if they cost around $500,000. If the house has a million-dollar price tag, the downpayment is at least 20%.
Those who want to have their property should become financially knowledgeable. The initial payment is a small percentage of how much it will need. The millennials need to learn about managing their funds and investments. They need to know about good spending habits that they should practice. Once they apply it, they can reach their goal.
Some people are not familiar with the concept of co-owning property. It can apply to those who cannot afford the entire cost of buying. Shared ownership offers the best of both worlds. The individual co-owns the property and has the option to buy it out someday. The owners can agree on how the other will pay to own the house. They can do it through cash transfers or rent agreements, wherein they would allocate a portion for paying the remaining cost. They would get to live in and someday own it fully.
Some landlords allow tenants to rent their property until they can afford to buy it. However, not a lot of tenants know about it. It is a win-win situation for both parties. The landlord is guaranteed to have occupants who pay the rent, and the tenants will have a chance to own a home.
Let’s face it. The main barrier in owning a property is a lack of finances. The people who want to own houses should have access to more finance. Although some programs exist, such as First Time Buyer Incentive, Home Buyer’s Plan, and Tax Credit, not everyone can get approved. Some will look for an alternative source of their finances and choose private lenders with higher interest rates.
It shows the need for financing and property management companies to have equality in their terms. They need to help the generation renters afford a house of their own. Consumers need accessibility, and it is possible if there are new protocols.
Who knows? They might become the new generation of landlords offering homes to the younger age group and aiding them towards having their properties someday. If that happens, you might be able to help them with marketing their newly purchased rentals. But don’t wait for that before you sign up for Padleads. You can join now and post your property listings online. They will even let you syndicate them to other websites, where you can reach more people.