Digging Into Wealth Inequality - Issue 357


A shout out to Dan Johanis at Pekoe Mortgages for writing on this topic and for bringing this article to my attention. 

Dan did a great job summarizing the report put out by Beata Caranci, Senior VP and Chief Economist at TD Bank. 

That study by TD Bank  showed us that the home owners are wealthier than renters - by a staggering margin. 

 

According to the report:

"Wealth inequality in Canada is not just a story of rich versus poor, it is one of homeowners versus non-homeowners. The average net worth of homeowners born between 1955 and 1964 is now more than $1.4 million. This is 6.3 times that of non-homeowners born during the same time."

 

$1,400,000 vs $222,000 in net worth - that is enough to change the trajectory of your family for generations to come. 

 

And for all you younger buyers out there thinking that it's just the older generation that has benefited, the report has a rosier outlook:

“These data may challenge conventional thinking that young Canadians have been shut out of the housing market. In fact, they are acquiring housing at similar rates as previous generations at that equivalent age.”

However, with affordability now at its worst level in decades, the current generation of prospective homebuyers is facing the fate of missing out on housing wealth. Households without a starting point of a high income and/or an intergenerational wealth transfer face a high barrier into homeownership. 

The forced savings that home ownership can offer is very real, and very achievable. And like any savings program, the sooner you start, the greater the benefit!

You can read the full report by clicking here.

It is an interesting read and a clear call to action.  

Don’t forget that this coming week, on Tuesday, April 25th, we are hosting the Empowered Homeowner seminar at our Guelph Office at 1-5 Edinburgh Rd S. Join us to get the answers to all of your big questions surrounding home ownership & your home owning goals! Click here to register.

Thank you for reading and if we can be of any assistance to you or someone you know please reach out to us.

 

Enjoy the weekend!

Paul Fitzpatrick

Broker of Record 

Keller Williams Home Group Realty


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