About a third (34%) of millennials (Canadians born in the 80s and 90s) are homeowners, finds a new HSBC survey.Of those who don’t own, 82% plan to buy in the next five years. But there’s a minor problem:  70% of them haven’t saved enough for a down payment.

  • roughly 37% of millennials will take parental support for part or all of their down payment
  • about 21% will move back in with the ‘rents to save their down payment (recent empty-nesters, don’t turn your basements into storerooms just yet).
  • For many ( % unknown) An opportunity to “rent to own” could be just the answer they are looking for.

For millennials who can’t qualify for a mortgage (for example, who don’t pass the government’s new 4.64% stress test):

  • 59% would “consider” spending less on leisure and going out
  • 37% say they’d consider a smaller than ideal home
  • 30% would consider delaying children.
  • many ( % unknown) will take advantage of a rent to own opportunity, rent out the basement to friends and come out full fledged home owners in a couple of years.
So how can rental property investors leverage these facts to their greatest advantage? Well one way is to offer the millennials properties on a rent to own bases, use rent credits to help with the down payments and plan to stay ahead of the game. Turning properties over this way every five years can save an investor a ton of money in maintenance and repair and keep rents up to date with inflation.
Want to know how it all works? ….CLICK HERE