Reader Mailbag!

Opinion

9 minute read

September 20, 2019

Well, here’s a new one!

I’ve had the odd guest post over the years, and certainly I’ve shared my reader-thoughts from time to time.

But never before have I done a “mailbag” feature, and I’m actually surprised that I never thought of this sooner.

You folks read the comments every single day, and many of you have told me in passing that you look forward to the comments as much as (or more so…) than the blogs themselves.

So imagine what I get in my own inbox?

These emails could make for their own blogs!  And with that in mind, I figured I would share three such emails today.

All of these are from the past week, and the second and third emails below go together like peanut-butter and jelly, I couldn’t have asked for more synergy.

Three emails, two topics, and a lot of discussion points.

Here’s one from a former client that shed some light on what it’s like buying real estate in the Netherlands:

Thought I would drop you a note about our real estate experiences here in the land of tall bicycle riding bastards.

So we rented an amazing furnished apartment in a fantastic area – but now our landlords are selling for whatever reason.

We have tried find a new rental – but the rental market is insane, and having 2 dogs is making it difficult. So we have decided to purchase a place – but yet to pull the trigger.

Here are a few observations:

1. Real Estate agents don’t work past 6 pm, and rarely show houses on weekends (but that’s common for most Dutch professions – weekend no work).

2. You can get mortgage for 100% of the value. Previously you could get 104% to cover closing costs, but this was phased out last year.

3. Rates for a 5 year and 10 year fixed are <2% and virtually the same. Standard amortization is 30 years.

4. You don’t get mortgage pre-approvals – just an estimated ceiling.

5. As a buyer, you have to pay your own realtor – not compensated as a commission through the seller. Pros and cons.

6. Land transfer tax is 2% of the property value

7. Typical 2 bed, 900 sqft unit is 375,000 euro in a central/nice area of Den Haag

8. Once you agree to a price with the seller – it can take upto 8 weeks to get all the mortgage approvals in-place.

9. Houses doing get staged. Never. It’s fucking mind blowing.

10. MLS equivalent is called Funda – if you thought MLS was bad… at least it is semi-current/updated. Funda is a disaster.

I think the biggest difference is the very different working cultures vs Canada. Agents here seem really weak and their performance is subpar – and I blame you for this. You set the bar too high.

I’ll send you some links of the places we are checking out and let you know when we finally pull the trigger.

Cheers

So that opened my eyes to a market I knew nothing about!

My favourite part was “Funda.”  It sounds like Bungol here in Toronto, except I think Funda is an agent site, and not third-party.

Of course, the most interesting part from a financial perspective, and a world economy perspective, is the 100% financing.  We had this in Canada years ago, and as the Netherlands apparently has 104% financing, don’t forget – we had 107% financing!

My client wrote me back a couple of days later to share the email he had received from his agent.  If you are disappointed here because you lose to a bully offer, imagine not even getting to see the house in the first place?

Hi David,

See below email – this sums up real estate in the Netherlands: Agents refusing showings because there are too many interested people!

What on earth are they thinking? Why would they do that to their client – maybe I would out bid all those cheap Dutch bastards. Who knows since I am not allowed to even view the place.

Dear —

I just called the real estate agent from the apartment at the Prinsegracht and they have 3 large viewings planned with about 25 candidates…. Unfortunately they do not add any more candidates for the viewings.

This week I will search for some options and mail them to you.

If you have any questions, please let me know.

Met vriendelijke groeten, best regards,

They call buyers “candidates.”

They have 25 of them.  Wow.

Does that mean there are 25 would-be buyers?  Or 25 buyers interested in making offers?

Here’s the follow-up:

Here is the place that I saw yesterday at 4 pm. Stunning, well renovated – perfect location.

On the market for 10 days.

https://www.funda.nl/en/koop/den-haag/appartement-41457002-johannes-camphuijsstraat-175/

So I told my realtor to prepare an offer yesterday and submit within the day at list price – conditional on finance and inspection (typical in the Netherlands) and valid for 24 hours.

Not done until today at 4 pm – and another bid came in. WTF.

She put the validity for 48 hours, and had to tell her to correct it. She seemed to think that we should give the seller more time would be appropriate. When I told her it gives the seller more leverage to drum up bids it finally clicked. No strategy.

The market is red hot – low inventory and they get snapped up. Dutch are cheap and like to haggle, but in this market and for this type of house you need to act quick and not waste time.

I will let you know how it goes.

So that was an experience!  And I wasn’t even there; I was just living through my client.

The next email I received from a reader, totally out of the blue, was about millennials.

Maybe not so much about millennials, but about the difference in how two generations got to experience the Toronto real estate market.

This is great insight:

I have read your blog for a long time and think you always reveal interesting discussions and make good points.

Here is my thought for what it’s worth. (disclaimer I am 56 years old and own multiple properties) :

The young were denied a recession. Every generation experiences at least one bad recession –  people in their 20s or early 30 have the opportunity then to buy a property at 30-50% off, depending on how bad a recession it is. But at least they can get on board, and then have skin in the game. When I was in my 20s, the 1987 crash happened. House prices then suffered terribly between 1991 and 1995, when I was in my 30s.

Recently, during the “Great Recession” of 08/09 , we witnessed the terrifying downwards spiral of equity prices , but if you tried to buy a house in Toronto, the maximum discount you could get was around 12%. I’m sure bigger deals were available if you managed to hit the sweet spot as a buyer ( e.g. a seller divorcing/ moving countries) , but for the most part, the decline was a bit grudging.  This was not the case in the US, where property prices plunged and then had a few scary years after 2008. But in Canada, Europe, Australia , NZ etc, you blinked and you missed it (the dip). I now live in the UK, and while you might have been able to get 50% off in Chelsea, London in Feb/ Mar 2009, those prices did only last for 2 months, and it usually takes 3 to 4 months to get a deal through over here!

This was, of course, because of Quantitative Easing. The original TARP solution was  (in my view) necessary, but the subsequent (increasingly futile) attempts to keep the economy / patient on life support maintained equity and property assets at an artificially inflated level, and has done ever since. Perhaps the reversing of Globalization  might remedy this . (Populism is definitely not in my personal interest, but it looks like the string has stretched too far, and that we might be going the other way now) ,

Perhaps fodder for a future post , perhaps not, but just wanted to share my thoughts. Perhaps Millennials have been cheated out of a recession and this is why they decide to indulge in avocado toast instead of saving ?

Think about this for a moment: “Perhaps millennials have been cheated out of a recession.”

Recall that a reader asked me on Wednesday how much I paid for my first condo, and I answered: $277,500.  In 2006.

This was a 575 square foot, 1-bed, 1-bath, with parking, and a 440 square foot terrace in the St. Lawrence Market area.

That condo today would be $600,000.

Although having said that, this condo in 2001, if it existed, would have been $175,000.  So I could make the same argument about prices, just not quite as good an argument.

Were millennials cheated out of a recession?  Yes!  They were!

2008 was a blip on the radar.  House prices were down for eight months, that’s it.  And depending on your definition of millennials, many of these people were still in high school, so not exactly ready to pull the trigger on a house or condo.

The last email I received is just perfect, absolutely perfect.  Considering the email above, the timing of this one is perfect.

This is actually why I decided to hit the “mail bag” theme today.

Honestly, this is what I wake up to several times per week.  Keep ’em coming, folks!

Hi David,

Long-time reader, first-time emailer and I’m hoping that this doesn’t turn out to be the dumbest thing you’ve ever read and that you turn me into one of the characters on your blog!

I’m a millennial born in 1996 so just barely bordering on those generation zed kids you talk about almost as unfavourably as us millennials. I dont disagree with most of what you say although it does seem like you make the same point over and over. I get that though. I see the way my age group acts and I know it can be facepalm inducing to those even a decade older.

I wanted to let you know that you’re correct in most of what you say but I wanted to give you some insight into why my age group is the way it is. You talk a lot on your blog about how we act but not about why so here goes.

I’m a 23 year old single woman working downtown in finance but living at home with my parents. I realize that owning real estate is a pipe dream as my parents are not well off and can barely afford their own home.

I’ve grown up in a society that is obsessed with consumption.  It was never like this for previous generations.  Consumption is everywhere and our generation is inundated with it.  I’m not blaming advertisers or influencers but if my generation is even the least-bit ill prepared for life in 2019 the20n the amount of 24/7 in your face advertising that we see is going to affect how we live.  Everybody consumes.  Everybody buys.  Everybody wants and then fills those wants with stuff and things. This is how we were taught to live for the last twenty years. You grew up watching Friends which was unrealistic because coffee shop waitresses and failed actors and musicians lived in Manhattan lofts.  My generation grew up watching The Kardashians which glorifies a lifestyle that is a thousand times more unrealistic. You watched movies in the theatre in the 1980’s with previews now we have ten minutes of commercials for products.  Think about that.  Such a small thing, going to a movie. But multiply that across every single thing that you do and you have to admit that advertising for products and services was never like this for your generation. Certainly not for Boomers.

You talk about financial literacy on your blog but you don’t consider how none of my generation has formal training. They dont teach this in school and while I know you probably didn’t take a course like this in high school you never had a cell phone bill because you never had a cell phone. Our generation was given more responsibility and maybe they didn’t live up to it but what would your generation have done if they could buy a t-shirt with the push of a button?

You never had an iphone with apps to buy every single product under the sun. I’m not blaming the apps for my generations spending habits but I’m trying to show you just how different consumerism is in 2019. This has shaped our mindsets and outlooks as well as how we consume.

So why doesn’t a millennial scrimp and save for a down payment on a house? Because this generation has made a choice to go travel the world, attend sporting events and concerts, eat at great restaurants, spend time with friends and accept the grim reality that home ownership isn’t an option.

You spend all your time writing about how expensive Toronto real estate is so you should know better than anybody how unrealistic it is to think that a young person in their early 20s is going to save $50,000 in after tax dollars to buy a crappy half mill condo with 10% down and still get hammered with CMHC fees.

Maybe my generation just thinks they’d rather rent or live with the parents and be able to have nice things. Maybe that’s not good planning for the future but it’s not the 1950’s when you turned 18 and you left the house for the workforce. I actually don’t mind living with my parents and in my culture we’re supposed to stay home until we marry anyhow.

Thanks for listening and please oh please pretty please don’t out me on your blog!!!

Just so you know – I asked her if I could publish this!

I would never publish a letter without conset, just know that.  I wanted to copy this in its entirety so please disregard her plea for privacy since she said it was “totally cool.”

Maybe I’m allowing myself to be convinced here, but I understand her argument.

And if you put this together with the second email, about how this generation “was cheated out of a recession,” it makes sense.

A 26-year-old just started on my team this month and he described his friends’ spending habits as “agressive.”  That’s an interesting word!  He explained that the money is there, and they just want to do great things with it.

This is a generation that’s had everything they’ve ever wanted at their finger-tips.  When I was 8-years-old, in 1988, if I was doing a class project on wolves, I would go to the library, search for animal books, then take them off the shelf, flip to pages about wolves, copy down my “facts,” and then write it up into a paper.  The next generation just Googled “wolves.”

So is that why this generation consumes?  Does the blog reader who sent that last email have an accurate take on this?

I’d love to hear from other millennials on this, whether you agree or disagree.  I realize this has a loose association with real estate, but just consider that you guys are the ones that represent the next wave of real estate buyers, so it’s great insight into the next ten years of the Toronto market.

Written By David Fleming

David Fleming is the author of Toronto Realty Blog, founded in 2007. He combined his passion for writing and real estate to create a space for honest information and two-way communication in a complex and dynamic market. David is a licensed Broker and the Broker of Record for Bosley – Toronto Realty Group

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27 Comments

  1. Kyle

    at 6:58 am

    David, why have you never done this before? These were great, I really enjoyed reading the various perspectives and takes. Hope this becomes a regular feature on your blog.

  2. Chris

    at 9:21 am

    It is on the topic of South Korean millennials, but recently read an interesting article on spending habits of young adults in the face of stagnating incomes, high property prices, and overall economic despair:

    https://foreignpolicy.com/2019/07/04/why-young-koreans-love-to-splurge-shibal-biyong-millennial-fuck-it-expense/

    Combine that with some of the stats from resources like Dr. Paul Kershaw’s Generation Squeeze:

    “- Greater Toronto Area: Average home prices would need to fall $523,000 – two-thirds of the current value; or typical full-time earnings would need to increase to $150,000/year – triple current levels.

    – It now takes a typical young person 13 years to save a 20% down payment on an averaged priced home in Canada, compared to the five years it took when today’s aging population started out as young adults around 1976.

    – Younger Ontarians are facing alarming amounts of personal debt. In addition to high home costs, young people’s personal debt is growing because post-secondary tuition increased more in Ontario than in any other province since 2003, and childcare now costs 50 per cent more than university tuition.”

    We’ve talked here before about millennials entering their household forming years, buying their first homes in Toronto, and propping up demand/prices. But, given their mediocre incomes, high debt burdens, poor financial literacy, low savings rates, putting off of marriage and having children, and the high expense of Toronto real estate (as well as your reader’s comment that “Maybe my generation just thinks they’d rather rent or live with the parents and be able to have nice things.”), I’m not so sure how much demand we can count on from this generation, at least in the near-term.

  3. Ed

    at 9:49 am

    From the first letter.
    5. As a buyer, you have to pay your own realtor – not compensated as a commission through the seller. Pros and cons.
    ??????????????

    I wonder what the going rate is to hire a realtor/agent.

    1. Guy From First Story

      at 1:21 pm

      It depends on the level of service you choose – but generally speaking it is:
      1. Bronze=1750 euro, vat incl
      2. Silver=2100 euro, vat incl
      3. Gold=2,800 euro, vat incl

      Bronze package (what I did, because I am cheap) is very basic – home search, a bit of research and completing the purchase agreement.

      Silver would include setting up your home inspection and maybe the notary (but not paying for the notary).

      Gold includes a home assessment and a few other hand-holding features for a first time buyer or an inexperienced expat.

      1. Ed

        at 1:31 pm

        Cheap Bastard 😉

        1. Guy From The First Story

          at 1:37 pm

          Absolutely I am ????????

          “There’s only two things I hate in this world. People who are intolerant of other people’s cultures and the Dutch.”
          -Michael Caine

  4. Jackie

    at 10:24 am

    For the 23 year old who says in her culture it’s normal to live at home until your married. In many of those cultures it is also normal when the parents are older you are fully expected to support them, financially and otherwise.

    For the Holland situation, you need to be able to conduct business in the cultural context you are dealing with. There should be no expectation that communications, negotiations are dealt with in the same manner as North American standards. It is highly likely giving someone 24 hours to review an offer vs. the 48 hour norm will result in your offer being flat out rejected.

    And some people may find the slurs offensive. I doubt you would have published them if you replaced Dutch with Chinese.

    1. Ed

      at 10:27 am

      Bastards, Bastards, Bastards!!!

      Sorry I had to get it out.

    2. Anthony

      at 10:51 am

      By “some people” do you mean yourself? If so, then just say it. If not then leave it alone. This is the problem with the overly-PC movement: it’s middle class white people policing language and society for others, who never asked them.

      You need to go watch Dave Chappelle’s latest Netflix special and then tell us if you’re still offended by the “slur” of calling a Dutch person tall.

    3. Guy From The First Story

      at 1:28 pm

      Hi Jackie, I did in fact purchase the house. The seller appreciated my offer and the fact that I wanted to close quickly – I will have the keys in 30 days or so, which is indeed fast for Dutch standards.

      Unfortunately due to time pressures I had to settle for an RE agent that was less than ideal. However, I did meet an agent at an open house who was fantastic and cared about what he did – but he was 1 of maybe of 20 that I interacted with.

      He was also a tall Flying Dutchman.

      1. Professional Shanker

        at 1:46 pm

        If you don’t mind sharing,

        What interest rate and term did you secure?
        Also, did you take the 100% loan to value?

        1. Guy From The First Story

          at 2:02 pm

          Hi PS,

          The mortgage is 1.79% fixed for 10 years – with 100% financing. Amortization is 30 years.

          100% financing is very common here – in fact, if you want to contribute significant funds to the down payment, the notary will need to run anti-money laundering checks on you.

          When I purchased with David in 2018, I did 20% down and had a 3.5% mortgage.

          I could have pulled downpayment from my TFSA or other accounts, but they are doing well (above inflation) – so this made sense.

          In terms of costs incurred for the transaction:

          1. RE Agent=1750
          2. Mortgage Fee=1,525
          3. Inspection =490
          4. Appraisal =460
          5. Notary = 1,500
          6. Land Transfer = 8,540

          All in Euro, VAT included

          1. Jennifer

            at 12:51 pm

            how much does the vendor pays his/her agent?

  5. London Agent

    at 10:41 am

    Reading that last email was almost therapeutic for me. I’m a Millennial and I have zero issue saying that I suck with money and have terrible spending habits. Do I take responsibility for these habits and the situation I’m in? 100%. But it also feels really good to point at technology and marketing and say “Hey! You! You did this to me! You create a need and show me everything that I want to fill that need… and then offer it to me with the click of a button! How dare you!” Aggressive is the perfect word.

    But luckily I live in London and still own a detached home so things could be worse!

  6. Another Guy Named Chris

    at 10:53 am

    Let me first state that I am a millennial, or Gen Y, born in 1983. I’m clearly much older than the 23-year old single woman who works in finance and lives at home with her parents. Based on when I was born, when I started my career, and the way the real estate market evolved (and my earnings grew) I admit I’m far more fortunate than she. We are not equal and I wouldn’t pretend our circumstances are the same, so much so that I’d hesitate to call us of the same “generation” but if you have to lump people together then so be it.

    There are significant disadvantages to entering the workforce today and being at the very start of your career at 23-years old in 2019 but I think you’re blaming all the wrong things. Are you really mad at… marketing? It’s only going to get worse, so buckle up. Sure, there’s plenty of marketing and consumption is probably at an all time high, but in order to consume you have to be able to pay for the goods. Most 16-to-21-year olds have always been able to buy things by getting a job. If you didn’t have a job, your parents had money and paid for what you needed. If you’re talking about accumulating credit card debt, well, you won’t believe this but Gen X had that problem, too, and Gen Z will probably lack financial literacy as well.

    Who’s to blame for not teaching you about financial literary? That’s never been formally taught in school, at least not to my knowledge in Canada, so your generations parents can shoulder the blame here. The factors involved in that are actually more complicated than you may think, so let’s just say most of us could benefit if financial literacy was taught in schools and you’re not the first generation to be deprived of it.

    And allow me to overgeneralize, but cell phone bills? Please. Your parents almost certainly pay your cell phone bill because it’s a line item on your family’s $400-500 monthly bill with Bell or Rogers. That’s how it’s been since you turned 15 when your parents handed you down their old iPhone 4. Before there were apps, there was something else, be it video games or hockey cards or CDs and DVDs.

    I know this sounds wild but you can save money for that entry into the real estate market AND still do all the things you want to do (let’s be honest, you’re just doing some of it for the ‘gram.) You can absolutely travel and you can save. Is it easy? Probably no. Will you have to be smart about what activities you choose to partake in? Yes because you can’t do everything. The grim reality is that you’ve chosen a grim reality! You’ve thrown your hands in the air and said “F@*! it all, let’s just have fun!” and then probably yelled out YOLO.

    I can’t believe I’m going to say this but $50,000 isn’t that much money. I’m not the most financially literate person but if you can save a few dollars each time you get paid a meagre sum every two weeks, you’ll get there. I don’t say this as a brag but I paid off my $30,000 student debt in two years thanks to my education tax credits (which my parents could have used themselves but did not and for that I am grateful!) and aggressive savings just before I turned 25, all while I shared an apartment with a roommate in an old apartment building that was fine. Then I spent five years saving and also living a little where I could, but always dreaming of owning my own place, and worrying I didn’t have enough to buy…until I realized at 30 that real estate prices were growing faster than I could save. So I bought a place, with a big down payment, and it was the single best thing I’ve ever done financially, by a wide margin.

    And with all of that being said, my advice is to stay at home with your parents. If you’re living rent-free, then enjoy it while it lasts and save your money aggressively. If you’re happy living at home at 23, then keep doing it until you decide to make a change…or until the change isn’t your choice, be it marriage or your parents throw you out. Once you’re out there’s probably no going back, so start saving for that day.

    Apologies for the essay, but I’m surprised this reader focused on the factors she did when are a ton of economic factors she didn’t mention, like how wages are flat and benefits from employers are decreasing compared to previous generations and the cost of living is rising and our life expectancy seems to be lower than our parents, etc. The rich are getting richer and our generation is absolutely getting squeezed, but you focused on what seemed like a lot of the wrong things.

  7. Millenial Rep

    at 11:02 am

    Re: Letter 3 and those damn millennials

    I am in the middle of the millennial cohort and am sick of this argument that valuing “experiences” is the antithesis of home ownership. Owning a home makes it much easier to have certain experiences – having a garden, owning large hobby gear (bike, kayak, skis, etc. etc.), having a backyard, doing home improvements, and on and on. Obviously you can do those things from a rental but it is hard.

    Anecdotally, I think most people in the universe are bad with money, millennials included. The social pressure to buy a home in your 20’s is small in most friend groups in Toronto, so people don’t overcome their own bad impulses to try and make it happen. I think this will change as millennials get into their 30’s and all of their friends start buying places and having babies. Give it 5 years and all of a sudden millennials will find a way to save $50k.

    1. Mxyzptlk

      at 4:42 pm

      Agreed. Well said!

      1. Mxyzptlk

        at 4:43 pm

        And I’m 65 years old (if that’s pertinent).

    2. Appraiser

      at 6:45 pm

      “I think most people in the universe are bad with money,” ~ Millenial Rep

      preach…

      Actually most people lack discipline with money, especially when young (self included).

      And I’m not 65 yet (if that’s pertinent).

  8. Ed

    at 11:23 am

    David you mentioned, in your Pick5 the other day, that most buyers are looking for a place that needs no renos/work to be done. I think this is part of the reason many younger people will have problems getting their foot in the door of the property market.
    When I bought my first place in 1995 (at 30 yrs old) there was plenty of updates needed but none of it structural, so it was done bit by bit when the funds and time were available. I also rented out a room and the basement to pay the mortgage down quicker. These were just sacrifices that needed to be made in order afford a home, I don’t think many new buyers are willing to make the same sacrifices today.

    1. Professional Shanker

      at 11:57 am

      Sweat equity was an actual thing back in the day for first time buyers as well…..

    2. Guy From The First Story

      at 2:20 pm

      So we did the fixer-upper thing in 2018 – bought a small row house downtown Toronto that needed a lot of work. My wife and I did all the work ourselves – hardwood floors, new kitchen, tiling etc

      While I learned so much, it was back breaking. And I was miserable for 8 months.

      So when we bought our place in The Netherlands, my wife and I decided to go for the renovated house.

      No sweat equity for me on this one – but happy that I can come home and relax without having to rip up the carpet runner on the stairs and pick out a thousand staples with needle nose pliers.

      1. Ed

        at 3:38 pm

        Been there, done that with the wall to wall carpet in each of the three houses I’ve owned. Funny thing is they all had green carpet.

        1. Guy From The First Story

          at 4:38 pm

          Ed, did the carpet match the drapes?

          For me drywalling/plastering was one of the the hardest skills to master.

          What was your most hated job?

          1. Ed

            at 6:14 pm

            It’s not so much that I hated a certain job as they all had to be done and done by me. But I would say that mudding the drywall was the most frustrating since I was so bad at it.
            I liked drywalling, steep learning curve but you see results immediately so in that way it was very rewarding.

        2. Oren

          at 8:19 am

          That reminds me of my first house.
          Green walls, green shingles, green door. Ironically, the only thing that wasn’t green was the grass…

          Not a nice iPhone 11 green, a vomit, bleach-green.

  9. condodweller

    at 11:09 pm

    Re 1st mail, I’m on record saying the first thing I would like to see changed in Canada is for the buyer to pay his/her own agent. I think it’s absurd/insane/(pick your favourite expletive) to expect the seller to pay $10k/15k/20+k for the buyer’s agent. Enough said.

    Re 2nd mail, the economy and real estate markets are cyclical. Millennials may not have a great chance to pickup properties at a 50% discount as after the 89 crash but there will always be opportunities in the future to buy unless you drink the cool aid permabulls tell you here that our RE market will go up for ever.

    Re mail 3, I completely agree that current marketing techniques are relentless. However it’s no excuse to blow your money. The key is to recognize it and take steps to avoid the constant pressures to buy. How about cancelling all your subscriptions to the various “deals” email lists from all your favourite retailers/online stores? It is way too easy to fall prey to those “awesome” deals and things like Paypal’s easy one touch checkout, or whatever they are calling it is not helping. You know how they have all the impulse items at the checkout in physical stores? Well guess what, all those emails you get with endless deal suggestions are the never ending impulse items. Of course the targeted ads based on your searches don’t help either. They are so efficient now that recently my family members started getting targeted ads for items that I was searching/reviewing online. How crazy is that? The key is to recognize this and take steps to tune it out. If you are an alcoholic the local pub is probably not the best place to frequent. If you are a self described struggling millennial who thinks you will never afford a home, subscribing to retailer advertisements might be just as bad.

    I also think that the expectation of owning your home in your 20’s is not “healthy” and it wasn’t realistic even for us gen-Xerxes. I was lucky to have purchased my first condo in my mid 20’s but that was due to me being opportunistic in taking advantage of the 89 crash and subsequent decline in the RE market. I never expected to own my own place until after 30. But when the opportunity presented itself I grabbed it with both hands.

    If owning your own place is important to you than why take on the defeatist attitude that you will never be able to own? I find that such a cop out. If you are living at home, rent free, and most likely you are also not paying for food why not hunker down and save 100% of your income and put yourself in a financially good position to take advantage of opportunities when they arise, and even if one doesn’t, eventually you will have enough saved to come up with a down payment. I as a parent, would have no problem with my child saving all income while working and living at home as long as he/she has a plan and is actively working towards the goal of moving out one day using the savings for a down payment. Ok, it may not be for a SFH downtown but you can at least get your foot on the first rung of the ladder. I’m sure people will say saving 100% is unrealistic. I say it’s up to you how important ownership is to you as it is certainly possible. Even if you spend 5-10% on your avocado toast and Starbucks, you’ll be much better off than spending 100% because you have thrown your hands in the air and given up because you believe you can never own.

Pick5 is a weekly series comparing and analyzing five residential properties based on price, style, location, and neighbourhood.

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