2023-06-25 20:59:26
A recent Royal LePage survey conducted by Maru/Blue revealed this week that 35% of Quebec renters, or nearly 750,000 people, wanted to buy a property in view of July 1st.
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However, they had to give up on realizing their ambition, as there are so many obstacles to buying a property.
The first obstacle to standing up against the ambitions of tenants wishing to become owners is the current imbalance of the market.
“It’s still a seller’s market. Supply and demand is still completely disproportionate, and many people – even sellers – wanted to sell, say to themselves: “but where are we going to go?”, and therefore decide to remain owners”, explains in an interview with TVA Nouvelles Roseline Guèvremont, residential real estate broker for Royal LePage Tendance.
In the current inflationary context, Quebecers have seen their bills inflated on all sides, so that buying a property without help has become almost impossible.
“The down payment generally comes from a gift, an inheritance or the sale of property,” lists Ms. Guèvremont.
“So people who are renters have a hard time putting aside a down payment given the rising cost of groceries, the cost of gas, rising interest rates, property taxes which have increased… these are all factors” that complicate the purchase of a property, she explains.
The increasing cost of housing is another obstacle to buying a property, since it is even more difficult to accumulate capital.
“People are going to rent for a higher cost than what they originally wanted because they can’t find it in their price range, so people are going to put in over 30% of their gross income to be able to afford something in the sector they want,” explains Ms. Guèvremont.
“There are 100,000 units missing to meet the demand of tenants at the moment,” she adds.
In the current context, the alternatives to becoming an owner are limited.
“Buying an income property means having income that will absorb the costs of the property, it’s always a good option,” advises Ms. Guèvremont.
“Sometimes it’s also to change sectors, so to broaden horizons, and sometimes also, unfortunately, it’s to lower expectations in order to be able to access property,” she suggests. Again.
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