21% of Canadian baby boomers plan to make a real estate purchase in the next three years, according to a recent Mortgage Intelligence survey -
Eight out of ten (84%) Canadian baby boomers, aged 41-61, state they are not hesitant to consider a real estate purchase despite U.S. housing market volatility, according to a new online survey by Angus Reid Strategies on behalf of Mortgage Intelligence Inc. In fact, 21% of boomers surveyed anticipate making a real estate purchase in the next three years; 63% are not apprehensive about Canadian real estate, but have no plans to purchase within three years; 6% are not considering a Canadian real estate purchase because of the U.S. housing decline; and 10% do not know how they feel about Canadian real estate.
“Canadian boomers are a savvy bunch, and our survey indicates that despite the turmoil in the U.S., they clearly understand the long-term value of real estate,” said John Schipper, President, Mortgage Intelligence Inc. “With approximately 2 million boomers planning to buy a home within the next three years, this segment will be a major driver of the Canadian real estate market.”
Results from two polls commissioned by Mortgage Intelligence, a leading Canadian mortgage brokerage, shed light on some interesting Canadian baby boomer real estate trends:
24% of younger boomers (between the ages of 41 and 54) are more likely to have plans to purchase real estate in the next three years versus 13% of older boomers (between the ages of 55 and 61). (Angus Reid Strategies).
17% of those interested in purchasing real estate are most interested in investment properties, followed by 15% who want to downsize. (Corporate Research Associates).
More younger boomers are looking for out-of the box solutions for generating additional disposable income, including real estate investments observes Barry LaValley, founder and president of the Retirement Lifestyle Centre and Special Advisor to the Scotiabank Group.“ A sub-element of the investment real estate boom is the ‘tear down’ property market. Boomers are seeking out inexpensive properties that can be dressed up and resold for a profit,” said LaValley.
“Real estate clearly remains an important investment strategy for boomers as they plan for their retirement years,” said Schipper. “Every day, our mortgage consultants work closely with these clients to offer consultative service, knowledgeable advice and flexible mortgage solutions to meet their changing lifestyles.”
About the survey
The first poll was conducted by Angus Reid Strategies on September 25, 2007 among a representative sample of 490 Canadian boomers. The results are based on two-sided tests with significance level 0.05. The second poll was conducted by Corporate Research Associates Inc. in a nationwide study of 1,000 baby boomers across Canada between August 10 to September 4, 2007. An overall sample of 1,000 drawn from the population would expect to provide results accurate to within plus or minus 3.1 percentage points 19 times out of 20.
About Mortgage Intelligence Inc.
Mortgage Intelligence Inc. is among the largest and fastest growing mortgage brokers in Canada, with more than 1,000 independent consultants and associates in offices across Canada. Mortgage Intelligence consultants help clients make better mortgage decisions for their home, revenue or vacation properties, renewals, home renovations, debt consolidation needs, and specialized mortgage requirements. The company had funded volumes in excess of $7.8 billion in fiscal year 2006. For more information, visit: www.OntarioMortgageTeam.com
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