Jordan Maxwell
Other
Canada’s luxury housing market is in the midst of a striking transfer of wealth, as baby boomers trade up for bigger houses while pouring huge sums into real estate for their children. “I don’t think you’ve ever had nearly as much help from one generation to the next in buying homes,” said Ross McCredie, CEO of Sotheby’s International Realty Canada, which issued a new report examining the finances and buying habits of different generations of buyers in the “luxury” market, which generally refers to the higher end of real estate markets across Canada. According to the Globe and Mail, wealthy boomers are increasingly looking to upsize into luxury homes, often because they still have adult children living at home. Empty-nesters are more likely to “right-size” into bungalows and condos that are only slightly smaller than their previous home. In many cases, boomers are taking on debt to buy luxury homes, despite the fact that the typical boomers buying in Canada’s high-end market earn an average of $500,000 and can easily afford to pay cash. Often they’re looking to take advantage of low interest rates to invest their home equity in vacation homes, investment properties or the stock market.
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