Source: https://www.remonline.com/owning-a-home-is-a-pipedream-for-many-millennials-says-kpmg-poll/

Soaring house prices and rising personal debt are making it impossible for many millennials, even those with good paying jobs, to ever afford a home, says a new poll commissioned by KPMG in Canada.

While almost three-quarters of millennials say their goal is to own a home, almost half say home ownership is a pipedream, the poll says. It surveyed 2,500 Canadians, including 1,000 millennials between the ages of 23 and 38 who now represent the largest population generation in the country.

“The combination of rising house prices, high levels of personal debt and annual incomes that are just a fraction of the cost of buying a home compared with their parents’ generation is pushing the dream of home ownership out of reach for many millennials,” says Martin Joyce, a partner at KPMG. “This is particularly challenging in the markets of Vancouver and Toronto.”

The poll found that 72 per cent of millennials say their goal is to own a home, but 46 per cent say owning a home is a pipedream. An equal number, 46 per cent of millennial homeowners, received a financial boost from their parents in order to buy a home. The poll found 38 per cent believe their house won’t be worth as much in the future.

KMPG says that as the most educated generation, millennials have incurred high levels of student debt and those who have been able to enter the housing market have taken on larger mortgages relative to their incomes than those who came before them, according to Statistics Canada. While millennials have higher incomes than previous cohorts, in part because of their higher educations, they are not necessarily better off, KMPG says.

Household debt has been on an upward trend for the past 30 years and recently reached record highs, making home ownership even more unaffordable, especially in tight markets. Whereas the average debt-to-disposable income ratio in Canada was almost 87 per cent in 1990, it was more than 175 per cent at the end of 2018 – a trend that has caused the Bank of Canada to raise alarms about the country’s economic vulnerability, says KMPG.

Debt-to-income ratio is a key financial indicator and, for young millennials, that now stands at 216 per cent, far exceeding the 125 per cent for Gen-Xers and 80 per cent for baby boomers at the same age – primarily because of mortgage debt. Wage growth has also been slower than expected, the Bank of Canada says.

While millennials have proven to be willing to incur higher levels of debt to attain home ownership, they are less optimistic about the payoffs, the KPMG poll finds.

Millennials now take an average of 13 years to save for a 20 per cent down payment, while it took their parents just about five years in 1976, according to a Canada Mortgage and Housing Corp. report.

“That’s eight fewer years that millennials might have for saving more for their retirement,” Joyce says. “If they do manage to save up and buy a house now and delay retirement savings, our poll finds 65 per cent of millennials fear they won’t have enough saved for retirement.”

A majority of all the generations surveyed in the KPMG poll wants Ottawa to take action such as:

• make housing more affordable;
• make it easier to use RRSPs for down payments;
• raise TFSA limits; and,
• implement a new registered savings system, like RESPs for education savings, to make housing more affordable.

“It seems pretty clear that millennials are in a unique situation in terms of their ability to purchase a home – which has historically been a foundation for retirement stability – and most Canadians agree that the government has a role to play in making it a more achievable dream for many of them,” Joyce says. “It’s time to have a national conversation.”

Source: https://www.remonline.com/an-estate-sale-can-take-time/

Selling a family home after a parent dies can be an emotional and stressful time. Some heirs may be in a hurry to dispose of the property and move on. However, selling a property owned by an estate isn’t a quick or easy process, says lawyer Barry Fish of Fish and Associates in Thornhill, Ont., who has been practicing real estate and estate law since 1973. “You’re not going to list the home the next day,” he says.

Fish provides the following general advice based on Ontario estate and real estate law. It’s important to note that laws vary in different parts of the country, so ensure your client hires a lawyer who has experience in your province. Estate law is intricate, so you need to find an experienced lawyer to help you manoeuvre through the system, Fish says.

Assuming there’s a will, as soon as the death certificate is issued, he says, the power goes to the executor. The first thing the executor must do is determine what the assets are – the value of the property and “other stuff” such as bank accounts and investments.

This is when the executor will contact a real estate agent for an appraisal. Fish says as their agent, it’s important that you have experience in handling estate sales, or at the very least, that someone in your office has the necessary experience.

The executor will provide the appraisal and other financial information to the lawyer, who will prepare the application for probate. The time between filing for probate to the granting of probate can vary greatly, from a few weeks to six months or more, depending on the backlog. Some jurisdictions are quicker than others. (It depends on the jurisdiction where the deceased lived, not the location of the property.)

An experienced lawyer will save time, because, Fish says, the courts are picky and probate forms that are filled out incorrectly will be returned, which causes further delays.

While waiting for the granting of probate, the executor must tend to the property, ensuring the insurance is in good standing and bills are paid, Fish says. An oversight in paying utility bills, for example, could result in burst pipes and water damage if the heat is turned off in winter.

While waiting for the application for probate to be granted, the time should be spent wisely. This is the perfect time to speak to your client and come up with a plan to determine the best time to list the property for sale. Often it is 90 or 120 days before probate is expected.

Fish says properties can be listed any time during probate, but the listing agent should be aware of the delay due to probate.

Source: RE/MAX Monthly Newsletter

Whether you’re getting ready to sell your home or just want to make the place you live an oasis, these minor remodeling projects will increase your home value!

Landscaping

Your home’s curb appeal is the first thing visitors see when they get to your home. You can make a strong, positive first impression with some smart landscaping. Consider a variety of plants that reach their peak in each of the four seasons so your yard always looks incredible.

Replace Your Front Door

The front door is one of the first things visitors see. Replacing the door can give your home a more modern, updated, and clean feeling. When choosing your new door, keep the rest of the home’s color and style in mind. Investing in a steel door will provide you with unbeatable durability.

Updated Color Schemes

Paint fades over time and popular color schemes change. Today, neutral tones like beige and grey are popular options throughout the home. Whether you do it yourself or hire a professional, painting your home is a great way to improve the atmosphere of your home.

Remodel Your Fireplace

Highlighting a home feature as iconic as a fireplace can make a dramatic improvement in your home. Some popular remodeling options are replacing outdated brick with modern, natural stone or expanding it to a floor-to-ceiling statement piece.

Add Crown Moulding

Crown moulding adds a touch of sophistication and class to your home. And, you may be surprised at how simple and affordable adding it can be. In addition to framing the rooms of your home, you can use it to highlight key features in your home such as the fireplace, breakfast nook, or bay windows.

Whether you’re planning to stay in your home for many years or getting ready to make a move, I’m here to help. Feel free to contact me with any real estate questions!