The largest living generation, millennials, are now at the age when many of them are purchasing their first property. It’s no secret that millennials have an entirely different set of values compared to generation X and baby boomers, and this is evident in many areas including real estate preferences. Previous generations dreamed of buying a large house in the suburbs with a big backyard, but this is not the case for millennials. Instead, Toronto’s millennials are choosing condos in urban areas, to fit with their busy lifestyles. Read on to find out why.
While millennials are known as a generation of renters due to Toronto’s inflated housing prices, many are seeing the benefit of buying. Renting a property is cheaper in the short term, however many millennials are thinking long-term and realizing that if they can save for a deposit, then the cost of their mortgage and condo fees combined will likely be cheaper than rent, with the benefit of actually owning the property in full one day. Buying a house may be a stretch for many millennials, but saving up for a deposit for a condo is an achievable goal.
The other finance-related benefit of condos is that expensive repairs are funded by the reserve fund from condo fees. While many people don’t like the idea of paying condo-maintenance fees into a communal fund, millennials prefer this to paying the considerable cost of repairs all in one go.
Not only do condo residents not have to pay for maintenance all in one go, but they also do not have to carry out a lot of the work themselves. Much more work goes into the maintenance of a house compared to a unit, leaving millennials with more time to enjoy their busy lives.
Due to their busy lives and constant fear of missing out, millennials love to have everything they need at their fingertips. Having a pool, gym, swimming pool and more right there in their building is extremely appealing to them. Other convenient amenities such as a concierge and valet also make the lives of millennials easier, leaving more time for the things they want to do.
Millennials love to live in urban areas, with everything city life has to offer right on their doorstep. Real estate prices in downtown Toronto are much higher than in the suburbs, so buying a large house in an urban area is not an option for many millennials. However, a city center condo may just fall into their budget. Not to mention that often condos are the only option in these areas.
With Toronto’s housing prices always on the rise, millennials realize that buying even a small condo in a prime location will eventually pay off. If they decide to move elsewhere in the future, they can sell their unit for significantly more than it was purchased for, or easily rent it out for an extra stream of income.