Millennials are showing a marked increase in intent to buy a home, with 43% saying they’re considering purchasing in the next two years, up from 34% in 2015, finds an RBC poll.
Here are some additional findings.
- Young buyers are also significantly more likely to consider purchasing a home with a family member (24% vs. 13% for the general population) or with a friend (24% vs. 9% of the general population);
- 76% believe that home ownership is a good investment;
- 34% of first-time homeowners looked at more than 10 homes during the purchase process; and
- 36% say finding the right property is their biggest challenge, followed by 22% who say deciding how much they can afford.
Read: Home prices continue rising in key markets
If clients are considering buying a home with a friend or family member, RBC offers these tips.
Get on the same page: There will likely be some different must-have items on each of your lists, so work together to come up with one list that you can both agree on.
Stress-test for affordability: Talk about what would happen if one of you lost your job or had a change in financial circumstances.
Get it on paper: Create a simple agreement that outlines your arrangement including what costs each party is responsible for, and don’t forget utilities, maintenance and moving expenses. Having a contract in writing is key to solving disputes going forward.
Have an exit strategy: Include in your agreement how you will deal with the property if one party would like to sell.