First time buyers still value housing as wise decision

THINK OUTSIDE THE BOX: Property should form part of any well diversified investment portfolio, and our office thoroughly believes in the value of intelligent leveraging.  Many home owners continue to believe that property ownership remains a good investment.  Besides, everyone needs to live somewhere and who can argue with tax-free capital gains, right?

Owning a home is viewed as a wise financial decision by almost half of first-time buyers.

A survey by mortgage insurer Genworth shows that the financial benefits of owning a home was the top reason for buying (49 per cent) followed by wanting to control their home (46 per cent) and because they had saved enough for a downpayment (45 per cent).

More than half of respondents were concerned that they would not be able to get a mortgage due to tighter restrictions that have been introduced in recent months despite almost half feeling that they were in good financial shape.

Most first-time buyers are employed full time (84 per cent) and earning a combined household income of at least $100,000.

“From the perspective of a mortgage insurer, these first-time homebuyers possess a positive profile which includes full-time jobs and incomes to support their monthly mortgage payments. They are financially responsible and looking for the benefits associated with long-term homeownership,” commented Mr. Levings, President and CEO, Genworth Canada.

Although 18 per cent of respondents said they would not be able to buy a home and 32 per cent saying it would be ‘much more difficult’ due mainly to higher house prices, they were also willing to delay purchase, cut non-essential spending or borrow cash for their downpayment

by Steve Randall          Real Estate Professional          09 May 2017

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