Earlier this year, Melbourne-based property mogul Tim Gurner made headlines for claiming that millennials can’t afford to buy properties because of their penchant for avo-toasts.
But the reality is, we are spending way too much on everyday luxuries. So much so, that it is actually eating up what could be our down payments for a mortgage. A recent look at our spending habits by RateHub calculates exactly how much a Canadian would need to save in order to afford purchasing a home.
The average price of a home in Canada was $472,247 in August, according to the Canadian Real Estate Association. And RateHub reports that mortgage broker CanWise Financial found Canadian homebuyers put down an average down payment of 10%.
Using these numbers, RateHub calculated that on average, you would need to save $47,225 for a down payment in Canada. Keep in mind, the average price for a home is much, much higher in Vancouver and Toronto, where the averages are $1.1 million and almost $800,000 respectively.
- REPORT: The percentage of income Canadians are spending on housing
- Survey: Millennials want to own property despite homeownership challenges
- The average cost of rent in major Canadian cities in September (MAP)
So what would we have to give up for a down payment?
According to RateHub, if the average price at Starbucks is $4 for each drink, you would need to forego 11,806 drinks to make a down payment – that’s almost 76 years of no Starbucks if you buy a drink three times a week.
Other luxuries that would have to go are takeout meals, which are generally around $15. A millennial would have to give up 3,148 meals, or 20 years of only cooking at home, to afford that low 10% down payment.
And of course, Uber would have to go. With the average ride costing about $16.40, foregoing rideshares would be one way to get that dream house. You’d ‘only’ need to give up Uber for 18 years, or 2,880 rides, for some significant savings.
Nothing says millennial like brunch, which is perhaps where our avo-toast obsession comes in. With each brunch costing roughly $25 once a week, you’d have to give up a total of 1,889 brunches for a down payment.
What does that reality look like? About 36 years of no brunches to save for that home. And to think, that would be even more if you’re a resident of Vancouver or Toronto.
Guess we’ll stick with our rentals for now… even if they too are soul-crushing.