Where do we go from here? The future of real estate is always on the chat list at just about every social event that I attend.
Wealth transfer from boomers
There is no way to predict, but I saw a recent study that shows just how much money could loosen up as baby boomers begin to sell, and divide the wealth among their family members. The numbers are staggering! Hundreds of billions of dollars will become available to the millennials to now start their real estate lives.
But what will they buy?
Millennials and real estate
Unlike their parents, millennials will likely not be buying their first house and fixing it up, and then moving up to a larger home that they will spend the next 30 years in. Most millennials feel that they will raise their families in a condo or strata of some sort if they remain in Vancouver. A surprising number feel that they will leave the city to have their families.
So, who will buy the detached houses that have become so expensive?!
As we become an international destination for many people; so will come the buyers. There is plenty of wealth in other countries, and despite the foreign buyer tax introduced a little over a year ago, foreigners are still buying real estate here. Lately, I have met many people who have come from their respective countries to raise their children here, and give them a more grounded life. Many of them were wealthy and lived very privileged lives in their respective countries, but felt that their children needed to see a life without these amenities and learn English as well.
Looking out the window on a sunny day and I wouldn’t want to be anywhere else. I can see why we will continue to bring the world to our doorsteps.
See also: BCREA Blog – Special feature: impact of the foreign buyer tax