High bar of entry for new owners—analyst

by Ephraim Vecina26 Feb 2016
“If I only had a buck for every time someone criticized today’s young people for having fancy smartphones. The point being made is that millennials are mindless slaves to fashion who spend above their pay grade on toys.”
Thus wrote long-time housing industry analyst Rob Carrick in a February 21 commentary piece for The Globe and Mail. Carrick described the dangers of forcing millennials and young families to make “more mature” spending choices such as real estate in a market characterized by ever-growing prices, especially in regions hardest hit by the global petroleum price crashes.
In particular, he pointed at recent regulatory changes—such as the $13,000 property transfer tax break on each B.C. home priced less than $750,000—as fertile ground for large-scale financial problems down the line.
“With houses, a vastly more expensive purchase, we encourage young people to spend beyond their means. We feel they’re entitled to a home and must be helped to buy if necessary because ownership is such a great financial move,” Carrick said.
“No matter how much money you have to save for a down payment, buying a house is the easy part. It’s much harder to afford the endless financial demands of home ownership and find money for your other goals and obligations,” he added.
Carrick highlighted the need for more viable housing options and a major shift in perspective in the sector, especially among brokers and other industry players whose role is to mainly encourage this new crop of consumers to participate in the market.
“Our finances would be better off if we started treating houses as what they are – consumer goods that a growing number of people cannot afford and shouldn’t buy because they’re too pricey,” Carrick stated.


  • by 2/26/2016 12:21:55 PM

    My dad was told by his boss , when he was 40 years old, he could not afford to buy a house, that was years ago,,now at 90, his $7000 home looks like a deal. His boss was wrong

  • by jan van mil 2/26/2016 12:34:57 PM

    Real wrong, , even though the farm tractor and chicken sheid is gone,,,his extra large lot, is around around a million

  • by Yvonne Van Gelderen 2/26/2016 12:49:47 PM

    Slight correction. It is a tax break on each NEW home bought under $750,000. Is the government trying to help the homeowners and buyers or are they trying to help the developers and the economy? It would have been a much better break for home buyers if it were on all real estate under $750,000. You can't buy a new home in the Vancouver area for under that amount. So this will just encourage buyers to buy brand new townhomes and condo's instead of resale putting more downward pressure on the resale strata market.

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