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Necessity is the mother of invention. Economic conditions are compelling young Canadians to explore alternative ways to achieve their dream of home ownership, according to the RE/MAX 2024 Alternative Home Ownership Models Report.
Report Highlights
- 32% of Canadians are currently exploring non-traditional ways to enter the housing market.
- 47% of Canadians would consider non-traditional forms of home ownership in the future.
- Among those using alternative home ownership models, the most popular are: Rent-to-own program (22%), Co-ownership with family that isn’t a spouse or partner (21%), rental property (17%).
- 73% of Canadians believe home ownership is the best investment they can make in 2024.
Regional Market Insights
According to the RE/MAX network, 71 per cent of regions surveyed noted a slight uptick in non-traditional home-ownership situations.
Advice to Share With Your Homebuyers
- Research: Research realtors, lenders, lawyers and mortgage brokers with experience in non-traditional home ownership agreements. Get informed on the benefits and drawbacks of non-traditional home-ownership models before you start your buying journey.
- Understand the tax implications: Non-traditional home-ownership models often include different tax impacts and benefits. Consult a tax professional and weigh the taxes you may or may not be subjected to prior to entering into any non-traditional models of home ownership.
- Do your due diligence: Structure your rent-to-own agreement and the monthly payments such that the lender will accept it to fund a mortgage utilizing that as your down payment in the future. This is the most common way that rental buyers lose their money, sometimes negligently by the seller or landlord, and sometimes intentionally setting them up to fail to keep their cash.
- It’s not “one size fits all”: While demand has increased for secondary suites, and this type of property may offer income benefits, RE/MAX brokers caution buyers that these suites do come with barriers to entry, specifically timing. It may take owners a while to break even on the income potential of secondary suites.
Share the Report on Your Social Channels
There are various reels and a social graphic available for you to download and share on your social channels to help keep your clients and network informed on the latest RE/MAX report.
