Here's an article that I found to ring true with the milennials in our local market....

 

A millennial herself, Boston-based real estate agent Dana Bull understands the proclivities of many of today's first-time homebuyers.

 

The 27-year-old bought her first property — a condo in Salem, Massachusetts — with her now-husband five years ago. They discovered at the time that it was actually more affordable to buy, in terms of monthly payments, than it was to rent, Bull told Business Insider.

 

But eventually, the pair decided to move to Boston and rented out their condo to tenants. Soon, that passive income was enough to cover their $3,600 rent in Boston, and they became amazed by the pay off in real estate investing.

Today, they own six homes and 18 apartments in Boston and the North Shore.

 

But Bull, who left her job as a marketing consultant over a year ago to become a realtor, recognizes that buying a home for the first time — whether to live in or rent out — can seem intimidating.

 

"[Young people] are very fearful of making the wrong step and I do think that, in general, there's this fear of growing up, of making these big decisions, because it means you are officially an adult. And it's not that scary," said Bull, now a realtor with Sotheby's International.

 

One way to reduce the intimidation of shopping for your first home is to narrow your focus. Bull said a common mistake she sees among millennials is getting distracted by the small stuff.

 

"I try to educate my buyers that it's not about the stainless steel, it's not about the granite or marble countertops, you would be surprised at how affordable some of those finishes are to put in," she said.

 

Instead, Bull says, you should really be looking at the "infrastructure and big-ticket items ... [like] roofs, plumbing, electrical," especially in areas with older, historic properties, like Boston.

 

"[I'm] kind of training my buyers' eyes on craftsmanship quality and what certain things cost," she said. "For new buyers, they have no idea what a new countertop costs. So it's kind of this whole educational experience of, 'You know, that's a lot cheaper than having to replace your heating system.'"

 

In the end, you'll get better bang for your buck if you're buying a property based on its bones rather than its flourishes.

 

Original Article by Tanza Loudenback - Mar 2017 (Business Insider)

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New mortgage data released

New mortgages continue to grow in Canada, according to a new report.

There were just over 1 million new mortgage loans funded in Canada last year -- up 1.4% year-over-year, according to the Canada Mortgage and Housing Corporation.

Of those new loans, 39.6% were for new-owners and 9.5% were for home owners moving to a new home.

“From 2015 to 2016, the number of new mortgages extended to new owners in Canada declined by 1.3% and the number of consumers refinancing their existing mortgage for a larger amount increased by 3.8%,” CMHC said in the report. “The growth in refinanced loans in Vancouver and Toronto and their surrounding areas implies that existing homeowners are leveraging larger amounts of home equity.”

New mortgage loans were supported mostly by existing owners who refinanced or moved their existing mortgages to new lenders. That segment comprised 21.4% (or 219,897 total loans) of new mortgages that were funded for owners seeking larger mortgage amounts.

“British Columbia and Ontario are the only provinces to record growth in almost all types of mortgage categories, with refinances being among the fastest growing category in both provinces,” CMHC said. “In Ontario, refinance activity was especially concentrated in the Census Metropolitan Areas (CMAs) bordering Toronto, including Hamilton, Oshawa, Barrie, and St. Catharines- Niagara. All of British Columbia CMAs recorded very strong double-digit growth in refinance activity and large increases in the number of consumers with multiple mortgages.”

Meanwhile, Alberta, Saskatchewan, and Newfoundland saw significant declines in purchase loans.

 

Article from:  http://www.mortgagebrokernews.ca/news/new-mortgage-data-released-229394.aspx

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