AQRE — The Solution to the Millennial Real Estate Problem
As a robust national economy and equities market continues to bring higher purchasing power, Canadians are concerned about rising housing costs. Younger Canadians, in particular, have been priced out. Many don’t have significant capital investment and are thus unable to take advantage of the marathon bull market.
A CBC poll found that one of the biggest anxieties for young Canadians is, in fact, housing (35%). This fear overshadowed many other vital issues such as climate change (19%), the health of self/family (10%) and immigration (8%). Millennials realize the grim financial future left to them by baby boomers and they are growing frustrated. A full 13 years of full-time work for the average Canadian aged 24–34 is enough to save up enough for a down payment for an average home across Canada. In the Vancouver metropolitan area, it takes 29 years and in the GTA 21 years.
The Canada Mortgage and Housing Corporation have said that the high prices are caused by significant investor demand and income growth. However, this all is due to one factor — the scarcity of homes in Canada. As a first-time homebuyer, you’re competing against investors with far more resources, making purchasing a home for young Canadians a pipe dream.
This intergeneration shift has led to many new trends. The first and most common is the trend of multigenerational living. Young people are living in their parents’ homes even after finding a partner and having children. Basement suites and laneway homes are helping to facilitate this trend. Millennials may also buy into their family house, assisting parents in downsizing while still being close to family.
Another rising trend with millennial homes is to treat them as part of the sharing economy. They are meeting their monthly mortgage payments by renting out spaces in their home on Airbnb or getting a roommate or co-ownership with a group of friends. The financial realities of real estate in 2019 have forced people to get creative. Developers have taken notice of these trends and are now embracing these needs by providing housing that accommodates multigenerational living and space sharing. Such design changes include laneway homes, main floor master suites, homes with two masters, and condos with locked-off suites.
Millennials also have very different demands when it comes to homes. They are not inclined to buy “fixer-uppers,” but homes with premium finishing and appliances. Millennials lack the time or resources to undergo significant renovation projects. They are also adding premium stainless-steel appliances, smart thermostats, and USB ports to entice young homebuyers.
Not only does the high price of homes and rental expenses prevent millennials from moving out, but they also harm their wealth-building opportunities. Real estate is one of the most reliable investments for long term growth and was the vehicle with which many boomers were able to build wealth. AQRE is a solution to this problem. With its innovative investment model, a large down payment is not required to acquire equity in high cap North American properties.
Traditional investing can be troublesome, especially for on-the-go Millennials with its overly long time commitments, significant initial investments, and archaic investment methods and options. AQRE solves these problems and allows anyone to invest easily through its convenient mobile app. That way, Millennials can invest in real estate they otherwise might never have been able to, without losing out. AQRE is real estate investment for a new generation.