More millennials plan to purchase a home

Millennials are showing a marked increase in intent to buy a home, with 43% saying they’re considering purchasing in the next two years, up from 34% in 2015, finds an RBC poll.

Read: Housing starts dip

Here are some additional findings.

• Young buyers are also significantly more likely to consider purchasing a home with a family member (24% vs. 13% for the general population) or with a friend (24% vs. 9% of the general population);
• 76% believe that home ownership is a good investment;
• 34% of first-time homeowners looked at more than 10 homes during the purchase process; and
• 36% say finding the right property is their biggest challenge, followed by 22% who say deciding how much they can afford.

Read: Home prices continue rising in key markets

If clients are considering buying a home with a friend or family member, RBC offers these tips.

Get on the same page: There will likely be some different must-have items on each of your lists, so work together to come up with one list that you can both agree on.

Stress-test for affordability: Talk about what would happen if one of you lost your job or had a change in financial circumstances.

Get it on paper: Create a simple agreement that outlines your arrangement including what costs each party is responsible for, and don’t forget utilities, maintenance and moving expenses. Having a contract in writing is key to solving disputes going forward.

Have an exit strategy: Include in your agreement how you will deal with the property if one party would like to sell.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.