Canada Real Estate: Millennials Aren't Rushing To Buy, BMO Says

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People view buying a home as a milestone.

It's a time to offer hearty congratulations, to give gifts and hold housewarming parties.

Millennials, however, see a home as more of an investment than a turning point in their lives. And according to the Bank of Montreal (BMO), they're putting off the decision to buy until they feel it's the right time.

toronto condos
Downtown Toronto. (Photo: Getty Images)

A survey commissioned by the bank found that 70 per cent of millennial respondents preferred to delay the decision to buy a home, even though 60 per cent of them are sick of renting.

Seventy-eight per cent were concerned that they'll find something wrong with a property after they acquire it, while 66 per cent worried that its value could plummet.

Only about a quarter (26 per cent) of millennials are likely to buy homes in the next year, and there are a number of reasons for this.

vancouver condos
Condo buildings in Vancouver. (Photo: Rob Atkins/Getty Images)

Forty-four per cent of respondents said they weren't comfortable making major purchases at this point in their careers.

Meanwhile, 42 per cent said they'd rather spend money on travelling, starting a business or going to school; 38 per cent said they don't want to lose all their disposable income.

"The return on a home purchase is important to millennials and they take a thoughtful approach to how their home will fare in the current housing market," Damon Knights, BMO's director of home financing, said in a news release.

The survey spoke with 2,079 people aged 19 to 35 years old.

vancouver real estate sign
Condos on sale in Vancouver. (Photo: Temmuz Can Arsiray/Getty Images)

There are many pros and cons to buying a home. It's a huge expense, and only becoming more so in certain cities.

In a number of cases, it might be smarter just to keep renting.

Last year, York University business professor Moshe Milevsky told CBC News that renting a home has bonuses that buying doesn't.

Repairing your unit, for instance, only requires a call to your landlord. It's your problem to fix when you own a place.

"I think the biggest advantage to renting is the flexibility and the ability to change paths in your career, in your life without having to worry about selling a house," he told the network.

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