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Homeownership has long been considered a good investment to build wealth for Canadians, but a new survey suggests this perception may be fading. The poll by RatesDotCA and BNN Bloomberg of 984 Canadians asked how homeownership fit with their overall investment strategy.
It found 60 per cent of those surveyed still see ownership playing a key role in their future wealth. Yet 11 per cent of respondents cited changes in the housing market recently soured their view of home ownership as a good long-term investment.
As well, another 23 per cent of those surveyed noted that while they still view ownership as a good investment, that perception has deteriorated.
By age, Canada’s youngest adult cohort — from ages 18 to 34 — were the most bullish about home ownership, with 72 per cent viewing owning a home as a key piece of their long-term investment strategy. Among those surveyed age 35 and older, the percentage of those agreeing with that view was 57 per cent.
The survey also found that about a quarter of all respondents indicated that their home was not part of their investment strategy.
Higher borrowing costs, leading to declines from peak housing prices in many major markets, has likely led to more Canadians re-evaluating homeownership’s role in long-term wealth building, the study posited.
That said, it also found 43 per cent of those who purchased a home, and viewed it as a good investment at the time, see it as an even better investment today.
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