SmartLiving by Smartcentres . Nearly 20% of owners under the age of 35 own two properties. According to a survey, nearly 20% of owners under the age of 35 in the Greater Toronto area own two properties.Please Visit: SmartLiving by Smartcentres to Get Your VVIP Registration Today!
Royal LePage conducted a survey in June and interviewed 1500 property owners, including 500in the Greater Toronto area, 500in the Greater Mantico area and 500in the Greater Vancouver area.
The survey found that in the Greater Toronto area, 13% of owners own more than one property, while 18% of owners aged 18 to 35 own more than one property, which is higher than 11% of owners over 35 years old.
Even though millennials have struggled to enter the property market, Karen Millar, a Royal Real Estate sales representative, said that owners of two properties were often the first to enter the market because they benefited from rising property prices and were able to convert to properties with larger floor area or buy a second property.
Millar said that many owners of two properties will lease one of the properties.
The survey also found that nearly one and a half of the citizens aged between 25 and 35 already own their own properties, and one quarter of the young owners became owners only after the outbreak of the epidemic.
The latest survey shows that 40% of the owners of two properties in the Greater Toronto area and Greater Vancouver area use the funds obtained from the first property to buy the second property; take the Greater Toronto area as an example, 49% of the respondents said that the second property would be used for rental, 15% said they would lease the second property for a short time, and 7% said they would leave the second property vacant.
Phil Soper, Chief Executive Officer of Royal Real Estate, said that when buying a second property, the down payment and mortgage rate paid by the owner would often be higher than that of the first house.
Soper said banks would generally be very cautious about the risk assessment of second-tier assets for a second property owned by the same owner.
He said that the survey found that 7 per cent of the owners would leave the second property vacant, reflecting that the properties were leisure properties belonging to villas, but young owners were unlikely to leave these properties vacant and should rent them out in the form of Airbnb for a short period of time.
Soper said that as Toronto may introduce a property vacancy tax in 2022, it may have an impact on the number of vacant properties.