byon May 8, 2013
Nearly nine-in-10 Albertans surveyed said buying a house or condo is a good investment, according to a poll released by RBC.
As outlined in the bank’s 20th Annual RBC Home Ownership Poll, 89 per cent of Albertans said buying a home was a good investment, compared to the national average of 84 per cent. The poll showed homebuying intentions in the province have dropped to 22 per cent from 31 per cent a year ago.
“The more cautious mood this year is not surprising and is consistent with broader economic and industry forecasts. An unseasonably warm spring, low rates and anticipation of mortgage rule changes may have led many Canadians to move forward their home purchases in the first half of 2012,” said Sean Amato- Gauci, senior vice-president, Home Equity Financing, RBC. “Our findings suggest confidence in the housing market is still high and young Canadians are the bright spot as they look to buy their first home and seek the advice to do it right.”
The RBC poll also showed almost half of Albertans (49 per cent) feel their current housing market is balanced, compared to the national average of 40 per cent.
In a similar poll from TD Canada Trust, saving for a down payment, rising property prices and small paycheques were listed by young Albertans as the top barriers to homeownership.
According to TD, 65 per cent of Generation Y (those born between 1981 and 1999) non-homeowners identified increasing property prices as the main challenge to owning a home, compared to just 14 per cent of baby boomer (those born between 1946 and 1964) homeowners.
The next biggest barrier for young homebuyers was saving a large enough down payment, with 64 per cent of those polled stating they were unable to save enough, compared to 41 per cent of Baby Boomers.
“While young people may be anxious to start building equity rather than paying rent, waiting until you have a larger down payment can save you thousands of dollars over the life of your mortgage,” said Cheryl Tackaberry, Sales Manager, Mobile Mortgage Specialists, TD Canada Trust. “First time buyers can also consider the federal government’s Home Buyers’ Plan, which lets you borrow up to $25,000 from your RSP for a down payment on your first home.”
Not earning enough was also amongst the top concerns for young buyers, with nearly half (46 per cent) of those polled stating they weren’t earning enough to afford monthly mortgage payments versus just 10 per cent of baby boomers.