A recent CMHC study suggests that about 40% of First Time Buyers homes are gifted by their parents. Yes, Mum and Dad are buying their kids a new home! Another chunk of new home sales come from inheritance funds. The boomers are a very generous lot, I must admit.

Then there is an additional and significant tier of young buyers who have received inheritance money to help them finance their new home.unnamed-11

I just listened to a radio commercial featuring a father coo cooing with his 6 MONTH OLD daughter that he had just secured for her, a down payment on her first home. Now THAT’S planning for the future!

We Real Estate Professionals, bankers and economists are having difficulty predicting future rates, sales, prices for 2016…never mind any new lending/borrowing legislation. So how does this father come to a number that he feels comfortable will satisfy minimum down payments 20 or 30 years from now? I’d like to see his crystal ball….

Also, did he do this BEFORE he put funds aside for her education? Does investing in Toronto Real Estate trump university attendance? (NOT referring to “Trump University!)  I am simply using the verb “to trump” in the same sentence as the word “university” 🙂

With the extreme shortage of housing stock in the city of Toronto which is causing the soaring and inflamed prices in both freehold AND condo properties, it is no wonder that incomes (which are NOT keeping pace with risiunnamed-2ng house prices) and savings are often not enough to make a dint in young buyers’ downpayment requirements.  And for some reason, renting is often thought of as a LAST resort…unlike the housing cultures in New York, Paris, London and many many other global cities.  That said, vacancy rates in the Toronto rental market are under 1% anyway…so we even have multiple bidding on rental properties!


As long as young buyers are not over reaching, I would take Mark Twain’s advice:

“Buy land!  They’re not making it anymore!!”

If you (or someone you know), are looking for a Realtor who cares MORE about focusing on you, your concerns, goals and the successful purchase or sale of YOUR unique home, than they care about their volume of transactions and awards, please let me know the best way for me to connect, as I would love to offer my highly personal service. Contrary to that old expression, not only IS this business, but it IS personal! And, please, I encourage you to ask me any questions you may have about this post. I value your input and appreciate the time you took to read it.



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- Kate Akman

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