Real Estate in Quebec: A Comedy of Errors!
Ah, Quebec! The land of poutine, maple syrup, and a real estate market that feels like it’s been sent to the moon without a return ticket. With rents skyrocketing and house prices going through the roof, if you ever fancied buying a slice of this beautiful land, well, let’s just say it’s looking a bit less likely than finding a polite Canadian in a hockey jersey!
According to a new study, owning a home is inching closer to being one of those dreams better suited for bedtime stories than reality. Less than 50% of young people aged 18-34 in Quebec now carry the title of “homeowner”—less than half! Look, if I wanted to feel that depressed, I’d just watch the final two minutes of any sports match!
Credit Scores: Your Life’s Report Card
First on our list: credit scores. Have you checked yours lately? If you’re scratching your head, thinking it’s something to do with the noughties pop band, it’s time for a wake-up call! As our friend Vincent Déziel from Scotiabank suggests, lenders are looking for a history—not the history of your college roommates’ bizarre Facebook posts. They want to see if you treat your credit cards better than a cat treats its litter box!
Pre-Approval: The Only ‘Pre’ You Should Care About
Next, let’s talk about mortgage pre-approval. Ignoring it? That’s like trying to bake a soufflé without actually knowing what a soufflé is! Sure, it’s not mandatory, but you don’t want to find yourself in front of the perfect house only to learn you can’t afford a shed in the backyard, let alone a full-on family home. “Wait, my friend bought a mansion with the same salary?” You think. Well, spoiler alert: Their debt might look like a horror movie!
Planning: Not Just for Your Next Vacation
Rushing headfirst into a house purchase is like deciding to run a marathon without training—painful, regrettable, and sure to leave you gasping for breath! It’s an emotional rollercoaster, sure, but don’t make decisions that lead to potentially regrettable roommates (ahem, your in-laws!). Take a breath and map out your financial life like you’re plotting the next big heist—except the only thing on the line is your future happiness!
Needs vs. Wants: The Classic Dilemma
Ah, the age-old struggle between what you need versus what you want! Planning to buy a house? Consult the professionals first! You know, those kindly people in suits who don’t work for Instagram and actually have your best interests at heart. Sure, you might be tempted by that charming flat with the exposed beams—but what happens two years later when life takes a turn and you realize that charming flat is too far from the office? Great, now you’re commuting from Alaska!
Costs: The Unsung Heroes of Home Buying
Speaking of budgeting, remember that hidden costs are like the surprise villains in the romcom of your home-buying adventure. From renovations that look easy on the DIY blog to the sudden furnace breakdown that halts your life like your parents showing up unannounced! Knowledge is power. If you don’t know about energy-efficient renovations, you may just leave money on the table, and boy, that’s something you can’t afford to do!
Hope: The Last Thing to Die
Finally, don’t lose hope! Yes, the stats are scary, but they’re not the gospel. If history has taught us anything, it’s that tenacity and a bit of strategic planning can win over any wicked market. Budget wisely, be patient, and maybe even get a side hustle! Just remember, a home isn’t just a building; it’s the infuriating place where you’ll try to assemble IKEA furniture and come face to face with the true meaning of ‘you-get-what-you-pay-for’!
So, whether you’re a millennial, Gen Z, or anyone feeling sophisticatedly old, hang in there! With the right moves, the dream of homeownership in Quebec doesn’t have to be a myth. It’s just another raucous comedy where patience pays off and the punchlines are often on the house!
In the wake of soaring rents and escalating property prices in Quebec, the dream of homeownership is increasingly slipping from the grasp of many aspiring buyers. A newly released study highlights a drastic decline in the number of young millennials and Generation Z individuals able to purchase property in 2024. With the market presenting such formidable obstacles, understanding the pitfalls to avoid is critical for anyone seeking to secure a home before retirement.
Narcity Quebec reached out to Vincent Déziel, regional vice-president – mortgage authority at Scotiabank, to uncover the key missteps that potential homeowners should steer clear of in their quest for real estate ownership.
A recent survey conducted by Scotiabank reveals a troubling trend: the number of homeowners aged 18 to 34 in La Belle Province has plummeted significantly over the past three years. This year, only 49% of this demographic has managed to secure homeownership, down from 59% in 2021.
Moreover, the study indicates a growing trend of individuals renting or living at home with their parents. Currently, 39% of young Quebecers are renting apartments, a sharp increase from 28% in 2021, while an additional 11% reported residing with family, compared to just 6% three years prior.
To successfully navigate the complexities of buying a home, here are six critical points to keep in mind.
Not knowing your credit score
Your credit score is paramount when it comes to securing a mortgage. It is imperative to evaluate your credit rating before embarking on this pathway. “What lenders examine is your credit history, which indicates whether you have responsible credit card habits,” explains Vincent Déziel. Additionally, consistent income plays a key role in determining your creditworthiness. “For freelancers, a substantial work history is essential compared to those with a stable salary,” he elaborates.
Forgo mortgage pre-approval
While mortgage pre-approval isn’t mandatory, neglecting this critical step can lead to costly oversights. Skipping pre-approval might result in an unpleasant reality check when assessing affordability. “Those who don’t prepare adequately may discover their financing options starkly differ from those of friends with similar incomes,” warns Mr. Déziel.
Rushing without planning anything
While the prospect of purchasing a home can be thrilling, impulsive decisions may yield regrettable outcomes. “During the pandemic, I faced tremendous stress when purchasing a new property,” admits Déziel, emphasizing the importance of preparedness during this emotional and complex process. Gathering documents and coordinating logistics requires careful planning to avoid last-minute chaos.
Not determining your needs
Inadequate assessment of personal needs can lead to dissatisfaction post-purchase. Individuals often rush into buying without understanding long-term requirements. “It’s crucial to consult with professionals early in the process, lest you find yourself grappling with buyer’s remorse due to changing life circumstances,” stresses Déziel. Strategic planning and professional guidance ensure that the chosen property aligns with future needs.
Forgetting to plan for certain costs and financial assistance
The financial burden of homeownership can quickly escalate, particularly for older homes needing renovations. Buyers unaware of potential financial assistance programs risk incurring unnecessary costs. This lack of preparation may mean missing out on energy-efficient renovation credits, which can yield substantial savings over time, asserts Mr. Déziel.
Losing hope of being able to buy
Despite the declining numbers of young homeowners in Quebec, despair is not the solution. “While market conditions appear challenging, many have adapted by altering spending habits, knowing it may be temporary,” concludes Mr. Déziel, demonstrating that with determination and sound decision-making, homeownership remains an attainable goal amid fluctuating market dynamics.
**Interview with Vincent Déziel: Navigating Quebec’s Real Estate Market**
**Editor:** Welcome, Vincent! Thanks for joining us today to discuss the ever-changing real estate landscape in Quebec. It seems like many young people are feeling increasingly lost in this market. Can you share what the recent survey by Scotiabank revealed about homeownership trends among millennials and Gen Z?
**Vincent Déziel:** Absolutely! The survey reflected a concerning trend where homeownership for individuals aged 18 to 34 has decreased significantly, dropping from 59% in 2021 to just 49% this year. This shift is largely driven by skyrocketing rents and property prices that are making it tough for young people to enter the market.
**Editor:** That sounds daunting! What advice would you offer to prospective buyers who are feeling discouraged?
**Vincent Déziel:** First and foremost, it’s vital to understand your credit situation. Many individuals underestimate how critical their credit score is for securing a mortgage. It serves as a key indicator of how lenders perceive your financial responsibility. Make sure you assess and improve your credit rating before diving into the home-buying process!
**Editor:** Good advice! What about the pre-approval process?
**Vincent Déziel:** Skipping mortgage pre-approval is a big mistake. While it’s not mandatory, it sets a foundation for understanding what you can afford. Without it, many potential buyers may find themselves enamored with homes outside their budget, leading to some tough realizations later on.
**Editor:** So, building a financial roadmap is essential. Is there anything else you’d recommend?
**Vincent Déziel:** Yes, absolutely! Planning is crucial. Jumping straight into a purchase can lead to emotional decisions that might not reflect practical needs. Take your time to assess your priorities—whether they’re location, space requirements, or long-term investment potential. Rushing can result in regrettable choices down the line.
**Editor:** And what about hidden costs?
**Vincent Déziel:** That can be a real surprise! Budgeting doesn’t stop at the purchase price. You need to account for renovations, maintenance, and unforeseen expenses. Understanding these hidden costs upfront means you’re less likely to be blindsided later.
**Editor:** Lastly, amidst these challenges, do you still see a glimmer of hope for young buyers?
**Vincent Déziel:** Absolutely! While the statistics may seem daunting, persistence and strategic planning can make a big difference. Many individuals find success with side hustles or additional savings to bolster their budgets. Just remember: owning a home isn’t a pipe dream, but it does require patience and realistic expectations.
**Editor:** Thanks, Vincent! Your insights are invaluable for anyone looking to navigate the quirky yet challenging real estate market in Quebec. Keep holding onto that hope!
