The Bank Of Mom and Dad
There is still hope for Millennials locked out of the Vancouver housing market. It comes by way of generous parents investing in their kin.
As their baby boomer parents downsize from large houses into condos, the surplus wealth can go towards down payments for their children.
Obviously, this is not ideal for the rugged individualist. But the days of Vancouver being (quite literally) the final frontier of Western development are over. The Wild West is done and with it the DIY cowboy pioneering creed.
We now live in a world of empire. Much like England or Hong Kong, it is less about being self-made and more about building on the wealth and prestige of your family that has already established itself.
In today’s market, the reality is that Millennials may have to swallow their pride and ask their parents to help out. But the truth is, many parents will be happy to. It’s a different time now.
It’s a different market than it was when the boomers were first time buyers. Today Vancouver real estate buyers require more than just their incomes to buy their homes. Only 4.9 per cent of Metro Vancouver residents make more than $100,000 a year, while 65 per cent earn less than $55,000 a year.
It is obvious that to get the money required to live comfortably in this market, you may need a family effort.
To stay and thrive in the city you grew up in, you’re going to need more than a little help from your friends - the whole family is going to have to chip in. I understand family business and the empire mentality. I am the third in line of Vancouver REALTORS® following in my father and grandfather’s footsteps. While my parents did not help me get into the market, I fully expect that by the time my four year olds are 24, I will need to help them so it’s an issue I have considered extensively and many of my clients have bought with parental help. Let me put my unique background to work for you.