Are young buyers fooled by big promises?
Young buyers have big aspirations of home ownership but are they deluded by repayment plans?
Despite it being the biggest debt of their lives, young buyers believe they will have their mortgage paid off in the shortest time-frame.
According to a new Google Consumer survey, more than one third of those in the 18 to 24 age category believe they will have their mortgage paid off by the time they are 30 years old.
Others, however, are more realistic with 37 per cent believing they will be mortgage-free when they are over 60. Almost 30 per cent believe they will be between 51 and 60 years old.
Reflecting the difficulty experienced by Generation Y in saving for a down payment, nearly half of the 500 participants surveyed said they would accept a loan from a family member to help fund this.
The revival of downtown living is also dominant in this survey with 50 per cent of people stating their intention to buy a home in the city, compared to 24 per cent for the suburbs.
Interestingly, Google say that following BMO’s announcement that it was cutting its five-year fixed mortgages to 2.99 per cent, online searches for “mortgages” peaked, as did searches for “home renovations.”
A majority of homeowners say they will use their savings to fund home renovations within the next one to two years, with most stating that they are undertaking such projects for own enjoyment and not to boost pre-sale value.