With prices of homes in the GTA skyrocketing, many of our clients are faced with the dilemna of whether to move & upgrade or stay put and renovate. The Canada Mortgage & Housing Corporation (CMHC) thinks that the next boom in real estate will be Renos.
"Bankrolling all those new bathrooms, kitchens and subterranean sleeping quarters will be two extremes of homeowners, said CMHC Ontario regional economist Ted Tsiakopoulos at the housing corporation’s annual Toronto Housing Outlook Conference Tuesday.
The biggest spenders are expected to be 55- to 64-year-old baby boomers, flush from “the wealth effect” — the astounding growth of house values over the last decade. At the other end of the renovation spending spectrum will be first-time house buyers in the 24- to 44-year range, looking to add a basement apartment so the rent will help pay their hefty mortgages."
Both affordability and the shortage of resale listings will also be big contributors to the renovation boom, said Tsiakopoulos. Boomers may opt to stay put because it’s too expensive or difficult to find another home, while young buyers may have little choice but to add on or renovate their first home so it can double as their home for life.
The 55 to 64-year-old age group is the fastest growing demographic in the province right now, said Tsiakopoulos. By 2017 it is expected to make up 1.1 million of the 3.7 million households in Ontario. Just 20 per cent of that age group is likely to downsize, said Tsiakopoulos.
But about 40 per cent are expected to do renovations aimed at turning the old family home into a great entertaining space — in many cases with a basement apartment to help grown children get on their feet or save for a house — and, later, into a place where they can age out as long as possible." Source: Susan Pigg, Toronto Star
So what will it be? Move & upgrade or stay put & renovate? This is a decision that you will eventually have to make. Allow us to help you explore your options.