Buyer's remorse: Most millennial homeowners are house poor and want to sell
Many millennials face the understandable apprehension that they may never be able to afford a home in a market that’s continually surging to new heights.
But you may be surprised to learn that of the ones who’ve already managed to purchase a home, a vast majority have buyer’s remorse and want out.
According to a poll by CIBC, 81 per cent of millennial homeowners are looking to sell, mainly because they’re house poor.
Sixty-three per cent say their mortgage and housing costs are simply leaving them drained of cash, while 57 per cent worry that a hike in interest rates would make it difficult for them to pay their mortgages.
Thirty-six per cent have come to the conclusion that renting is a better option.
“In today’s market, homeowners are facing a conundrum as to whether to buy, sell or stay put,” David Nicholson, vice president of CIBC Imperial Service said in a release. “Buying or selling your home is one of the biggest decisions you’ll make … “
Boomers aren’t immune to housing anxiety.
The poll found that 67 per cent of boomers (55 and over) are looking to sell their homes and downsize.
“Your home is where your heart is, but it’s also likely your biggest financial asset, so there is a lot to consider as you enter or near retirement that can affect your decision to sell or not,” Nicholson added.
“It’s important to determine what income you’ll need in retirement to live the life you want and prepare for the unexpected.”
The online survey was conducted among 3,034 randomly selected Canadian adults. The margin of error - which measures sampling variability - is +/- 1.7%, 19 times out of 20.
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