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Mortgage Broker News | 21 May 2014, 11:44 AM Agree 0
Millennials may actually have more financial advantages than their parents, despite constant reports to the contrary. Except when it comes to purchasing a home.
  • Layth Matthews | 21 May 2014, 12:49 PM Agree 0
    I became a mortgage broker because I wanted to be a financier of appreciating assets. I think real estate is still a good investment in some markets, but it's tough to be an advocate in markets skewed by the whims of exogenous demand - and that could be all of Canada for a long time. It's not so obvious that millenials should be keen on home ownership. It's much more of a strategic decision than it used to be. Investing and financing is all about timing. If there are no obvious bargains available, it's better to wait and accumulate - or de-leverage - to position yourself for the next huge opportunity. Sorry, I was just talking to myself, again.
  • Ron Butler | 21 May 2014, 02:14 PM Agree 0
    @ Layth ....... you are not talking to yourself. I think the same thing most days. Ex-Pat money changing the whole real estate eco-system in some neighborhoods. Not saying it is unfair but it is not like living in a place where local supply and demand inform the marketplace.
  • Paul Burns | 21 May 2014, 07:19 PM Agree 0
    As the proud papa of three millenials in the process of finishing up University I worry about how student loan debt will affect their buying power. My eldest just finished law school, and he should have decent earning power in a few years, but his student loan payment will be in the range of $900 per month. In NB, that's a pretty decent mortgage payment itself. It will be a few years before he is buying a home of his own.
  • Paul Therien - CENTUM | 26 May 2014, 12:26 PM Agree 0
    I can remember much the same thing being said about Gen X when it was their time to enter the workforce. Lots of commentary about lack of jobs, high student debt levels, inability to own homes due to compressed wages, etc. We seem to forget that most Gen X kids were graduating in the early 90’s – during a recession. I believe that Millenials are more challenged today than previous generations, but that will change in the coming years. Just as it did for Gen X.

    Boomers will be retiring, albeit for many later than originally anticipated, and that means that there will be a large gap to fill. We have already experienced this Phenomenon in some industries where there was a large number of retirees and not enough talent to fill the gap. As we approach the next decade there will be a significant number of boomers retiring, in fact the largest work force retirement exit in our history – and there are some statistics that show there are more exiting the work force than entering. That means significant opportunity for upward mobility.

    The income to cost of living gap will eventually start to close, but that takes time. We have already started to see a bit of an adjustment with average household income net of tax increasing from $59,000 in 1993 to $79,600 in 2011 (We do not have current stats available to us since the government got rid of the long form census…).

    Millenials will need mortgage advice as much as anyone else, in fact maybe more due to the challenges they are facing with homeownership in the future. It also means that we could potentially see an adjustment in the marketplace, but that forecast has been happening for decades now. My crystal ball is cracked, but if unemployment numbers and interest rates go up, add in lack luster economic growth and high levels of household debt – could there be a market adjustment? Yes. Will it happen? Your guess is as good as mine, but historically there have been three key factors that drive a large market adjustment: Employment, Interest Rates, and surplus stock.
  • Pam Cranella | 27 May 2014, 07:34 AM Agree 0
    A great spot for greatness to talk to each other...vanity runs freely here!
  • M. Robertson | 27 May 2014, 12:41 PM Agree 0
    @ Pam Cranella - Well, they at least have offered some thoughtful insight into the article. Unlike your comment which is just derogatory to those people that actually take some time in our industry to share their thoughts and expertise.

    It's why these people are leaders, and you are not.
  • Guy Lew | 27 May 2014, 12:44 PM Agree 0
    I work mainly with Real Estate Investors, most of my data base are baby boomers. Lately I am seeing Millennials less concerned about the latest smart phone and more concerned about building wealth through investing. I am sure this is a small minority, but I remember at that age I was more concerned about buying my next car and not about wealth building. Now I am working towards doubling their income through Real Estate through rent to own deals that are not subject to looking only for deals and concentrate mainly mainly on cash flow and exit strategy. These client has set goals for owning a bigger home through investing.
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