This week: Four real estate assumptions that no longer apply, and what the average price gets you in Kitchener-Waterloo. Plus, how to build wealth as a renter and one property worth a look.

Buying low is the trick to selling high for any investment, but for real estate, that strategy hasn’t applied for some time. Yet, as Rob Carrick argues, many older Canadians are set on making their children homeowners, no matter the cost.

But owning a home is not the financial juggernaut it once was. There are signs the worst is behind us, but prices are down around 20 per cent from the early-2022 peak, meaning an annualized gain of just 3.5 per cent over the last decade.

It’s high time to admit four key assumptions no longer apply, Rob argues, including the notion that young people – or their parents – should clean out their savings to own a home. “Boomer parents won’t, and shouldn’t, stop helping their adult children buy homes,” Rob writes. “But calmer market conditions mean parents can be more discerning in their decisions about how much help to provide.” Parents can read the full column here, and younger Canadians can share it with the pushy relative in their life.

While $800,000 might only get you a slightly-larger-than-a-shoebox condo in Canada’s most expensive cities, it’s plenty in Kitchener-Waterloo. Your money still doesn’t go as far as before the pandemic, but in April the average detached home price reached $779,000 after some modest growth from a low of $752,000 in December. In 2019, a home for less than $500,000 was pretty normal – and then the frenzy doubled home prices and the average exceeded $1-million for a few months in 2022.

You don’t need to be looking to buy to take a peek. Shane Dingman reports on three homes for sale, from a historic American foursquare in central Kitchener to a renovated five-bedroom with in-law suites. One realtor told him sellers are still having a tough time stomaching sub-$1-million prices, but decide for yourself whether you think the price is fair. Take a look at all three homes and vote for which home you think is the best value.

Rates shown are the lowest available for each term/type and category (insured vs. uninsured) as of market close on Thursday, May 21.

Unattainable home prices, economic instability and job markets being transformed by AI: It’s no wonder many Gen Zs are giving up on the idea of ever owning a home. But that doesn’t mean they have to abandon achieving financial security, argue Kristy Shen and Bryce Leung.

The couple are early adopters of the financial independence, retire early (FIRE) movement, created by Millennials searching for stability when the traditional employment-based system was failing them. Instead of giving in to the pressure to buy a home, they decided to rent and invest their money in the stock market. “Our parents thought this was a crazy risk, but we proved them wrong: Our approach made us millionaires by our 30s, and allowed us to retire decades earlier than they did,” Shen and Leung write.

While rents have gone up since their journey began, the couple argue it’s still a strategy that can work for Gen Z if they commit to managing their money with discipline. A mortgage is a great forced savings plan, but a diversified stock portfolio has higher overall returns without the risk of debt in an increasingly volatile economy. “And as that system gets worse over time, FIRE will transition from a fringe movement to becoming the only real option for the next generation,” Shen and Leung argue. Read their full column here.

If the start of cottage season has you fantasizing about your dream cabin by the lake, here’s a little bit of inspiration and reassurance that good things take time. More than 80 years after his grandfather built a cabin north of Montreal, writer Matthew Hague replaced it with a warm, modern cottage straight out of a Canadian summer romance novel.