Real Estate

Pattie Lovett-Reid: "Morneau should be cautious in helping millennials buy homes. Owning a home is not a right!"

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  • Jul 26th, 2020 1:31 pm
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Pattie Lovett-Reid: "Morneau should be cautious in helping millennials buy homes. Owning a home is not a right!"

There is this entitlement among young home buyers that they deserve to own a home...and many unwilling to make any sacrifices.


https://www.bnnbloomberg.ca/pattie-love ... -1.1204149
When did home ownership become an entitlement?

Earlier this week Finance Minister Bill Morneau indicated without specifics that the Liberal government is exploring ways to make home-buying more affordable for millennials. But I have to ask the question: Why?

Home ownership is likely the biggest financial responsibility and commitment one can take. The ability to save for a down payment, make monthly payments and fund the costs associated with home ownership requires financial maturity and compromise.

To be fair, many have made compromises to ditch rental cheques and taken on mortgage payments very successfully. The sacrifices to achieve the dream of owning a home are never easy, but when you want something badly enough, you will do what you have to do.

Here are a few examples of the compromises that millennials take to buy their first home:

1. Honeymoon or home ownership: Newlyweds have abandoned the post-nuptial tradition of splashing out on big travel plans in order to put their cash towards a down payment instead. The same can be said about other young Canadians, who rein in their travel plans to save up for a home.

2. Adjusting expectations: Your first home likely isn’t your “forever” home. Buy less than you qualify for. Just because your potential mortgage shows you can spend a lot, doesn’t mean you should.

3. Make grown-up decisions: If owning a home matters that much to you, take a hard look at your life. Never mind whether you’re willing to commute – you may have to completely uproot your life and find a job in a more affordable market far from expensive urban centres such as Toronto and Vancouver.

A recent survey by MNP Ltd. highlighted how 46 per cent of Canadians surveyed are $200 or less away from financial insolvency at the end of every month, compared with 40 per cent who faced those circumstances in the previous survey in September. This suggests many Canadians are living close to the margin, and that clearly is not a good thing for the economy or the prospect of buying a home.

Given these debt challenges and financial compromises, Morneau’s suggestion that young Canadians need help with home-buying begs the question: When did owning a home become a right? Maybe it’s when it becomes a platform issue for the upcoming federal election.

Millennials will unquestionably be one of the largest cohorts of eligible voters, and they will have a huge impact on the results of the election. Many have expressed a desire to own a home.

But one thing that the government should keep in mind is home ownership isn’t for everyone – and that’s okay.
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What’s next? A new policy to make sure every millennial can buy a cottage?

Save money. Be smart.
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It's funny because the "home ownership for everyone" is exactly what the CMHC is yelling loudly against. The two ends of the liberal spectrum yelling at each other. Siddall vs Morneau.

Just a big circle jerk that will never deal with the underlying issues. But I guess if someone feels their yelling has their back, they scoop a vote... But in reality putting home ownership further and further out from those unwilling to make some sacrifices to get there.

Just like punishing small private landlords will all of a sudden make rent affordable to all in the GTA. Good luck with this backwards thinking that's seemed to infect Western society.
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The benefit of lower rents means it will make less sense to buy as rent will be significantly cheaper than a mortgage. What really popularized buying was rent payments started to be higher than mortgage payments. Unfortunately, lower rent is temporary. Government should really push people to rent. Not everyone can buy...but at the same time when you demonize landlords and implement anti-landlord policy then you piss off landlords, supply dries up and rents go up.
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I am also going to add that owning a home isn’t easy. You have to pay insurance, deal with a mortgage broker/bank, snow removal, appliance breaking down, leaks, furnace repairs, caulking gaps in your baseboards, landscaping, redoing windows and doors, painting your patio, PROPERTY TAXES, IRRIGATION, WATER AND GARBAGE REMOVAL (Utilities)

UPKEEP IS A PITA!

It is freaking expensive and my house drives me crazy some times, but I know I am stuck here forever as I can’t afford anything bigger.
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Millenials all want to own a home because they know that life is just more enjoyable when you have that security of home ownership. However, you cant ignore the fact that millenials are constantly self bombarded with images of their "friends" buying houses/condos, going on exotic vacations/weekend getaways, having big weddings/elaborate gender reveal parties, eating at nice restaurants, going for drinks, showing off their new cars, showing off their sneaker collection/handbag haul, their new boyfriend/girlfriend, their fitness progress/drastic weight loss, flaunting their new promotiom/new job, their concert seats/Raptors playoff tickets, their children's designer outfits etc. Basically they want tell everyone,"Hey guys, look at me! I'm doing well!"
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clydelee2020 wrote: Millenials all want to own a home because they know that life is just more enjoyable when you have that security of home ownership. However, you cant ignore the fact that millenials are constantly self bombarded with images of their "friends" buying houses/condos, going on exotic vacations/weekend getaways, having big weddings/elaborate gender reveal parties, eating at nice restaurants, going for drinks, showing off their new cars, showing off their sneaker collection/handbag haul, their new boyfriend/girlfriend, their fitness progress/drastic weight loss, flaunting their new promotiom/new job, their concert seats/Raptors playoff tickets, their children's designer outfits etc. Basically they want tell everyone,"Hey guys, look at me! I'm doing well!"

If someone has to tell everyone, "Hey guys, look at me! I'm doing well!" then they are just an idiot.

SAVE MONEY. BE SMART.
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Housing affordability has become more and more difficult over the decades. Just pointing out that millennials are whiny does not really cut it and overgeneralizes.

Screen Shot 2020-07-21 at 12.59.05 PM.png

Then as well, a lot of millennials use mom & pop as bank for their downpayment, which puts those at a disadvantage who do not have wealthy parents and instead need to deal with student loan debt. Yes, someone with a below average income should not expect to own a home, but even households that make 150-200k can struggle to get a 20% downpayment together within a reasonable timeframe on an average home in Toronto or the GTA.
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clydelee2020 wrote: Millenials all want to own a home because they know that life is just more enjoyable when you have that security of home ownership. However, you cant ignore the fact that millenials are constantly self bombarded with images of their "friends" buying houses/condos, going on exotic vacations/weekend getaways, having big weddings/elaborate gender reveal parties, eating at nice restaurants, going for drinks, showing off their new cars, showing off their sneaker collection/handbag haul, their new boyfriend/girlfriend, their fitness progress/drastic weight loss, flaunting their new promotiom/new job, their concert seats/Raptors playoff tickets, their children's designer outfits etc. Basically they want tell everyone,"Hey guys, look at me! I'm doing well!"
We have always been bombarded with these things...
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CondoMan98 wrote: I am also going to add that owning a home isn’t easy. You have to pay insurance, deal with a mortgage broker/bank, snow removal, appliance breaking down, leaks, furnace repairs, caulking gaps in your baseboards, landscaping, redoing windows and doors, painting your patio, PROPERTY TAXES, IRRIGATION, WATER AND GARBAGE REMOVAL (Utilities)

UPKEEP IS A PITA!

It is freaking expensive and my house drives me crazy some times, but I know I am stuck here forever as I can’t afford anything bigger.
everyone's house drives them crazy - i would prefer a 2500 sf condo to a 3500 sf house - but condo maintenance is just brutal...
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oasis2002 wrote: everyone's house drives them crazy - i would prefer a 2500 sf condo to a 3500 sf house - but condo maintenance is just brutal...
My house is 3,500 sqf and it pisses me off sometimes, but that is home ownership for you.

I have a couple of friends who live in massive condos. Maintenance fees are high and it CAN be worth it. But, you better be in a top tier area like financial district, Yorkville, Theatre District or King West to make condo living worth it.
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CondoMan98 wrote: My house is 3,500 sqf and it pisses me off sometimes, but that is home ownership for you.

I have a couple of friends who live in massive condos. Maintenance fees are high and it CAN be worth it. But, you better be in a top tier area like financial district, Yorkville, Theatre District or King West to make condo living worth it.
Its too much those fees though...1200 - 1500 and used to be that the prices were lower but 2500 sf condo -if you can find one now - is likely to be more expensive than a 3500 sf house. Maybe someday i can afford that - maybe..
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JanZ95915 wrote: Housing affordability has become more and more difficult over the decades. Just pointing out that millennials are whiny does not really cut it and overgeneralizes.


Screen Shot 2020-07-21 at 12.59.05 PM.png


Then as well, a lot of millennials use mom & pop as bank for their downpayment, which puts those at a disadvantage who do not have wealthy parents and instead need to deal with student loan debt. Yes, someone with a below average income should not expect to own a home, but even households that make 150-200k can struggle to get a 20% downpayment together within a reasonable timeframe on an average home in Toronto or the GTA.
Keep parroting the same nonsense. What your chart doesn't point out is the amount of low wage jobs that are skewing the data. As a landlord I see plenty of incomes. There are a lot of $100K jobs out there...but seems like we are fighting for the people who are making $40K. Well, sadly they just won't be able to buy in a world class, growing city. Move outside of the city or upgrade your skills. It IS that simple. We live in a day and age where there is more competition, people need to be more educated and more skilled. Can't get by on a high school education and benefit from skilled immigrants being pushed to drive cabs.

Rent, move, buy something smaller...these are never options it seems.
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Of course home ownership is not an entitlement but how did she come to that conclusion based on what Morneau said? Did he say that every millennial should be able to afford a home?
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coming from the generation that continuously screws everyone over with garbage policies while simultaneously get more rich.
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MasterBD wrote: coming from the generation that continuously screws everyone over with garbage policies while simultaneously get more rich.
Usually those with that mentality aren’t getting anywhere in life anyways. So, keep blaming others.
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cartfan123 wrote: Usually those with that mentality aren’t getting anywhere in life anyways. So, keep blaming others.
i see i hit a nerve.

i own my own property and do quite well for myself. you cannot deny the boomer generation is very short term minded and can seldom hold polciy together. are you trying to say that millenials are the ones who are pushing us into a never ending debt cycle? we have been alive for 30 years or so, hardly enough for policy making. Every decision that has been made is by people who are disconnected with reality - the policy choices only benefit them.

And by your own response I can see why the world is like this. When somebody speaks the truth, you say they are blaming others. Me and my fiance have worked our assess off and saved to get what we have with an average saving rate of 70%+. In addition to the property I own on my own, we have also put a down payment for a property that we found in a good area in the GTA. This took us 3 years to do because we wanted to find a good area with good value. We do what we can. Wages have not kept up with inflating real estate prices and builders are achieving 50% GM on their homes.

This is just another way for boomers to hold assets and accumulate more wealth. Why not downsize? Move? Take the money and leave and retire to somewhere else? most are too greedy to do so.
Last edited by MasterBD on Jul 21st, 2020 5:01 pm, edited 1 time in total.
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MasterBD wrote: i see i hit a nerve.

i own my own property and do quite well for myself. you cannot deny the boomer generation is very short term minded and can seldom hold polciy together. are you trying to say that millenials are the ones who are pushing us into a never ending debt cycle? we have been alive for 30 years or so, hardly enough for policy making. Every decision that has been made is by people who are disconnected with reality - the policy choices only benefit them.

And by your own response I can see why the world is like this. When somebody speaks the truth, you say they are blaming others. Me and my fiance have worked our assess off and saved to get what we have with an average saving rate of 70%+. We do what we can. Wages have not kept up with inflating real estate prices and builders are achieving 50% GM on their homes.

This is just another way for boomers to hold assets and accumulate more wealth. Why not downsize? Move? Take the money and leave and retire to somewhere else? most are too greedy to do so.
The Toronto the boomers bought in the 70s and 80s is not the Toronto we see today. The whole GTA + Hamilton region has evolved into a mega region and the affordability issue will probably deepen. I commend you on saving and buying a place; it is a big feat and many Canadians would kill to be in your shoes.

I think what could really help the GTA region is the densification of transit areas, and we are seeing that around VMC, Danforth GO, and Mississauga (especially with the Hurontario line being developed). Also with more subways and electrification of the GO tracks, we can maybe move people around better and create more opportunities to live.

Yes, millennials have it harder than boomers when it comes to housing, no doubt about it. But, we can't ignore the fact that millennials are buying a different Toronto.
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CondoMan98 wrote: The Toronto the boomers bought in the 70s and 80s is not the Toronto we see today. The whole GTA + Hamilton region has evolved into a mega region and the affordability issue will probably deepen. I commend you on saving and buying a place; it is a big feat and many Canadians would kill to be in your shoes.

I think what could really help the GTA region is the densification of transit areas, and we are seeing that around VMC, Danforth GO, and Mississauga (especially with the Hurontario line being developed). Also with more subways and electrification of the GO tracks, we can maybe move people around better and create more opportunities to live.

Yes, millennials have it harder than boomers when it comes to housing, no doubt about it. But, we can't ignore the fact that millennials are buying a different Toronto.
It doesn't help that the GTA accounts for the majority of the population in ontario, on top of the fact that ontario has almost 50% of canada's population. I agree, we need to expand transit and make areas more accessible. We also need skilled immigrants and a higher population to make expanding transit and into other surrounding areas more feasible.

Is it not normal for somebody to see some red when a boomer who worked tim hortons for 25 years bought a house in toronto for 100k and is now a millionaire touting to younger people that they are blaming others for the crap? to say that my mentality is wrong is beyond illogical and disconnected from reality when we are now expected to have years of schooling + masters/specialization + 2 summers or years of internship expereince to even be considered for an entry level job which a boomer could walk into out of high school or a measly bachelor of science degree?
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CondoMan98 wrote: The Toronto the boomers bought in the 70s and 80s is not the Toronto we see today. The whole GTA + Hamilton region has evolved into a mega region and the affordability issue will probably deepen. I commend you on saving and buying a place; it is a big feat and many Canadians would kill to be in your shoes.

I think what could really help the GTA region is the densification of transit areas, and we are seeing that around VMC, Danforth GO, and Mississauga (especially with the Hurontario line being developed). Also with more subways and electrification of the GO tracks, we can maybe move people around better and create more opportunities to live.

Yes, millennials have it harder than boomers when it comes to housing, no doubt about it. But, we can't ignore the fact that millennials are buying a different Toronto.
in my haste i did not thank you for acknowleging the issue - so i am grateful that some do appreciate the work we do and the crap situation that we have. so with that said, thank you .

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