Why Warby Parker Stock Raced 16% Higher on AI News Tuesday
AI-powered vision
That tech company is none other than Google owner Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL). Warby Parker revealed in a press release that it is teaming with Google to develop a line of advanced eyeglasses that harness artificial intelligence (AI) technology. These products would be suitable for everyday use.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
Warby Parker and Google intend to launch the first of these products after this year. In the press release, the former company did not get more specific.
As for the business arrangement between the pair, Google is committing up to $75 million to cover its partner's development and commercialization expenses. It's also pledged to a direct investment into Warby Parker, again of up to $75 million. The latter is contingent upon Warby Parker's option, and the achievement of certain, unspecified collaboration milestones.
A hopeful view of the future
It's exciting that Warby Parker has teamed with a tech behemoth like Google, especially considering Alphabet's eager pursuit of -- and financial commitment to -- developing useful and potentially groundbreaking new technology. A possible cash infusion of as much as $150 million is quite the sweetener, too.
While details are lacking for this project at the moment, it's indisputably a boon for the eyeglass maker. Investors are right to be hot on the stock following this news.
Should you invest $1,000 in Warby Parker right now?
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The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Warby Parker wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!*
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool recommends Warby Parker. The Motley Fool has a disclosure policy.
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Globe and Mail
36 minutes ago
- Globe and Mail
2 Artificial Intelligence (AI) Stocks to Buy Before They Soar 150% and 735%, According to Certain Wall Street Analysts
Key Points Nvidia and Tesla are two of the three best-performing stocks in the S&P 500 since January 2020, notching returns of 2,690% and 1,010%, respectively. Nvidia has a dominant market position in data center GPUs and generative AI networking equipment, and the rise of physical artificial intelligence (AI) should be a major tailwind. Tesla's electric car business is struggling with market share losses, but CEO Elon Musk says the company will dominate the robotaxi market in the future. 10 stocks we like better than Nvidia › Nvidia (NASDAQ: NVDA) and Tesla (NASDAQ: TSLA) rank among the three best-performing stocks in the S&P 500 (SNPINDEX: ^GSPC) so far this decade, and artificial intelligence (AI) has been a major tailwind for both companies. Since January 2020, Nvidia shares have added 2,690% due to soaring demand for AI chips. Meanwhile, Tesla shares have added 1,010% due to excitement about self-driving cars and autonomous robots. In both cases, some Wall Street analysts expect more fireworks in the years ahead. Beth Kindig at the I/O Fund thinks Nvidia stock will reach $410 per share by 2030. That implies 150% upside from its current share price of $164. Tasha Keeney at Ark Invest thinks Tesla stock will reach $2,600 per share by 2029. That implies about 735% upside from its current share price of $310. Here's what investors should know about these companies. Nvidia: 150% implied upside Beth Kindig, lead technology analyst at the I/O Fund, thinks Nvidia will trade at $410 per share by 2030, which implies a market value of $10 trillion. The investment thesis centers on rapidly growing demand for artificial intelligence (AI) hardware and software in data centers, as well as edge devices like autonomous cars and robots. Nvidia is best known for its graphics processing units (GPUs), chips also known as artificial intelligence accelerators. It holds over 90% market share in data center GPUs, and analysts at TD Cowen expect the company to maintain the same level of dominance through the end of the decade, with AI chip sales increasing 160% during that period. However, investors need to understand Nvidia is more than a chipmaker. The company also leads the market for generative AI networking gear and it has a burgeoning cloud services business. "We stopped thinking of ourselves as a chip company long ago," CEO Jensen Huang told attendees at the annual shareholder meeting in June. Importantly, while generative AI is currently the largest source of demand for Nvidia AI infrastructure, the company is well positioned to benefit as the physical AI boom unfolds. Physical AI refers to autonomous machines like cars and robots that understand, interact with, and navigate the real world. "We're working toward a day where there will be billions of robots, hundreds of millions of autonomous vehicles, and hundreds of thousands of robotic factories that can be powered by Nvidia technology," Jensen Huang explained to shareholders last month. So, can Nvidia reach $410 per share by 2030? I think so. That implies annual returns of 18%. Grand View Research estimates AI spending will increase at 36% annually through the end of the decade, which means Nvidia could achieve similar annual earnings growth. In that scenario, the stock could hit $410 per share in late 2030 at a reasonable valuation of 22 times earnings. For context, the stock currently trades at 53 times earnings, which itself is a substantial discount to the three-year average of 80 times earnings. Tesla: 735% implied upside Ark Invest analysts led by Tasha Keeney expect Tesla to trade at $2,600 per share by 2029, which implies a market value of $8.3 trillion. Their investment thesis centers on robotaxis, which are expected to account for 63% of revenue by the end of that period. Meanwhile, electric cars (26%), energy storage (10%), and insurance (1%) will comprise the remaining portion. While Alphabet 's Waymo is currently the market leader, Tesla theoretically has an edge in autonomous driving technology. Its full self-driving (FSD) software is powered entirely by computer vision, rather than a costly array of lidar, radar, and cameras like Waymo. For context, Tesla says its dedicated robotaxi (the Cybercab) will cost less than $30,000, but Waymo sensors alone can cost as much as $100,000. Also, Tesla has more camera-equipped vehicles on the road collecting data than every other automaker combined. That data advantage should translate into better AI models. Indeed, Ark Invest says Teslas in FSD mode can drive 3,200 miles per crash on surface streets, which makes them an estimated 16 times safer than an average driver and six times safer than Waymo. Tesla recently started its first autonomous ride-sharing service in Austin, Texas. CEO Elon Musk says robotaxis could be a material source of revenue by late next year, and he thinks Tesla will eventually have 99% market share in what could be a multitrillion-dollar industry. Indeed, Tom Narayan at RBC Capital estimates marketwide robotaxi revenue will reach $1.7 trillion by 2040. While that outcome is plausible, I would be remiss not to mention Tesla's woes. It has lost substantial market share in electric cars in the past year due to its aging product lineup and Elon Musk's political activities. In fact, Tesla deliveries dropped 13% in the first and second quarters, despite a 35% increase in global electric car sales year to date through May, according to Morgan Stanley. So, can Tesla reach $2,600 per share by 2029? I doubt it. While I think autonomous driving technology will be a big catalyst for the company, Ark's target price implies the stock will return 60% annually over the next four-plus years. That means Tesla's earnings would need to increase at 60% annually during the same period just to maintain its already-expensive valuation of 170 times earnings. Should you invest $1,000 in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,432!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,005,854!* Now, it's worth noting Stock Advisor 's total average return is1,049% — a market-crushing outperformance compared to180%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in Nvidia and Tesla. The Motley Fool has positions in and recommends Alphabet, Nvidia, and Tesla. The Motley Fool has a disclosure policy.
Globe and Mail
an hour ago
- Globe and Mail
Prediction: 2 AI Stocks Will Be Worth More Than Palantir Technologies by Late 2028
Key Points Palantir Technologies currently has a market capitalization of $335 billion, but Uber and CoreWeave could top that figure by late 2028. Uber has a strong presence in ride-sharing and food delivery, and the company expects the rise of autonomous vehicles to be a tailwind. CoreWeave has distinguished itself as the leading artificial intelligence cloud, and the company's revenue is growing incredibly quickly. 10 stocks we like better than Uber Technologies › Palantir Technologies (NASDAQ: PLTR) shares have advanced 400% over the past year, and the company is currently worth $335 billion. I predict Uber Technologies (NYSE: UBER) and CoreWeave (NASDAQ: CRWV) will reach $340 billion by late 2028. Here's what that would mean for shareholders: Uber is currently worth $201 billion. If the company achieves a market value of $340 billion by late 2028, the stock will increase 69% to $163 per share. That implies annual returns of roughly 16% over the next three and a half years. CoreWeave is currently worth $63 billion. If the company achieves a market value of $340 billion by late 2028, the stock will increase 440% to $702 per share. That implies annual returns of roughly 62% over the next three and a half years. Here's what investors should know about these artificial intelligence stocks. 1. Uber Technologies Uber leads the U.S. ride-sharing market with 76% share, according to Bloomberg. It also ranks second in the restaurant food delivery market with 24% share. The company is also the leader in ride-sharing services in nine other countries, and the market leader in food-delivery services in eight countries. Finally, Uber has a booming advertising business built on its ability to collect consumer data. Uber reported encouraging first-quarter financial results. Monthly active users rose 14% but total trips climbed 18%, which means the average user is engaging the platform more frequently. In turn, revenue increased 14% to $11.5 billion on strong growth in the mobility and delivery segments, offset by lower sales in the freight segment. Meanwhile, adjusted EBITDA increased 35% to $1.9 billion. Uber may not be an artificial intelligence (AI) stock in the traditional sense, though it does use AI to optimize routes and pricing, and to surface relevant ads within its mobile app. But autonomous vehicles (AVs) represent an inflection point for the ride-sharing industry, and Uber has numerous partners that have either launched or are about to launch robotaxi services, including Alphabet 's Waymo, Motional, Pony AI, and WeRide. Admittedly, some analysts see autonomous driving technology as a potential problem for Uber, particularly if a non-partner like Tesla emerges as the industry leader. But CEO Dana Khosrowshahi sees robotaxis as a likely catalyst. "Uber can deliver the lowest operational costs for our AV partners because we are leaps and bounds ahead on every aspect of the go-to-market capabilities," he recently told analysts. Here's how Uber could top Palantir's current market value by late 2028: The stock currently trades at 16.9 times earnings, but earnings are projected to increase at 26% annually over the next three to five years. In that scenario, Uber could be worth $340 billion by year-end in 2028 at a more reasonable valuation of 12.4 times earnings. That seems plausible given its dominance in ride-sharing and its many autonomous driving partnerships. 2. CoreWeave CoreWeave offers cloud infrastructure and software services for artificial intelligence and high-performance computing (HPC) workloads. The company works closely with Nvidia, so it can often deploy new technologies before other cloud providers. Also, it frequently sets performance records at the MLPerf benchmarks, objective tests measuring AI systems across training and inference use cases. Research firm SemiAnalysis recently ranked CoreWeave as the leading AI cloud, awarding it higher scores than Amazon Web Services, Microsoft Azure, and Alphabet's Google. Not surprisingly, the company reported dazzling first-quarter financial results. Revenue surged 420% to $981 million and adjusted operating income (which excludes interest payments on debt and stock-based compensation) jumped 550% to $162 million. CoreWeave recently announced plans to acquire data center infrastructure provider Core Scientific in an all-stock transaction. The deal, still subject to regulatory approval, would make CoreWeave more efficient through vertical integration. It would own the data centers rather than leasing them, which would eliminate $10 billion in future lease overhead. Also, management says the deal would let CoreWeave raise debt at a lower cost of capital. "This acquisition accelerates our strategy to deploy AI and HPC workloads at scale," said CEO Michael Intrator in the press release. "Verticalizing the ownership of Core Scientific's high-performance data center infrastructure enables CoreWeave to significantly enhance operating efficiency." Here's how CoreWeave could top Palantir's current market value by late 2028: The stock currently trades at 23 times sales, but revenue is forecast to grow at 69% annually through 2028. In that scenario, CoreWeave at the end of that period could be worth $340 billion at a more reasonable 20 times sales. As a caveat, my CoreWeave prediction is much more aggressive than my Uber prediction. However, I think the scenario I just proposed is plausible because the company is a leader in AI cloud services and its revenue is growing incredibly quickly. Should you invest $1,000 in Uber Technologies right now? Before you buy stock in Uber Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Uber Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,432!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,005,854!* Now, it's worth noting Stock Advisor 's total average return is1,049% — a market-crushing outperformance compared to180%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 7, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in Amazon, Nvidia, Palantir Technologies, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, Nvidia, Palantir Technologies, Tesla, and Uber Technologies. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Globe and Mail
an hour ago
- Globe and Mail
Better late than never More Canadians are buying their first homes in their 40s and beyond – and they're okay with that Zahra Khozema The Globe and Mail Published 32 seconds ago
For generations, the path to adulthood in Canada was scripted: you graduated, started working and bought a house, likely all in your 20s. That timeline has changed. Hindered by expensive housing, a growing number of Canadians are buying their first home later in life – into their 40s and beyond, a time traditionally used to save for retirement. So, what are Canadians doing in their 20s and early 30s, if not making mortgage payments? They're focusing on travel, education, career growth and, yes, slowly saving for a down payment. Undaunted by the pressure to reach certain financial and life milestones by a certain age, they're living life on their own terms and at their own pace. 'I find that this younger generation is, like, screw the timelines,' says certified financial planner Shannon Tatlock, 41. 'We just want to get there eventually, and it might take us longer and that's okay.' The data back her up. According to the most recent government figures, the average age of a first-time homebuyer in Canada is now just under 35 – and homeownership among the 25- to 34-year-old set has been steadily declining. In 2011, 51.7 per cent of this age group owned homes. That number fell to 47.3 per cent in 2016, and dropped further to 44.4 per cent in 2021. While the under-35 group still makes up the largest share of first-time buyers today, the over-35 demographic keeps creeping higher, rising at a faster rate across the country. Between 2018 and 2021, the older segment of first-time homebuyers grew more in all four provinces that shared home ownership data collected by the Canadian Housing Statistics Program. Research from Teranet, a service that tracks land transfers, puts the typical Ontario first-time buyer at 40 years old now. A big part of what's driving this trend is the relentless rise in home prices. In Ontario and British Columbia, prices have eased from their peaks in early 2022, but five other provinces – including Quebec and Nova Scotia − hit record highs in average or benchmark prices this April year-over-year. According to the Canadian Real Estate Association, the average home now costs under $700,000 – nearly quadruple what Statistics Canada listed in 2000. Meanwhile, in the same time period, annual individual income saw a relatively modest increase of $10,000, up to $59,400. Even with a recent dip, home prices remain far above historical levels, having peaked at more than $800,000 in 2022. The numbers are even more staggering in urban centres. The average home in June, 2025, sold for $1,101,691 in the Greater Toronto Area and $1,273,462 in Greater Vancouver, according to a site that provides online real estate and financial tools. The Calgary market, often seen as a more affordable, was not immune to the same trend – the average home price rose to $646,147, up 3.7 per cent from last year. Ms. Tatlock bought her home in Moncton several years ago and says that, nowadays, even in typically affordable regions such as hers, buying a first home is difficult and requires sacrifices not everyone is willing to make. 'Maybe your goal is a three-bedroom, stand-alone home,' she said. 'I could help you save to get to the condo or to get to the townhouse. If you want this stand-alone, then we might need to make some really big changes to your lifestyle.' Vancouver-based certified financial planner Steve Bridge says not all late buyers are in the same financial boat. Those in their 50s and early 60s are often in their peak earning years and can hammer down a mortgage with doubled-up or lump-sum payments, which isn't always the case for people in their 40s, who are often juggling kids' expenses and household costs. The struggle for late first-time homebuyers is how to still save for retirement. There are options, he says, such as getting a second source of income, taking in renters, working past retirement age and living more frugally. 'It's just, are we willing to do it?' One thing he doesn't recommend is relying solely on your home for retirement income. 'You can't eat a house,' he said. You can sell and downsize, or rent, or you can take a reverse mortgage, 'but that just builds up debt again.' One thing that is certainly more common, Mr. Bridge says, is people retiring with a mortgage. Ms. Tatlock sees the same tension between paying off a mortgage and preparing for the future. If buying a home is your goal, she says 'saving for retirement is happening a little later.' 'That's okay,' she adds. Retirement planning is also different these days, Ms. Tatlock noted, with fewer pensions and more people on the hook for driving their own savings. Younger generations of Canadians, she said, won't have the luxury of seeing their homes skyrocket in value the way their parents and grandparents did. That means later homebuyers who still want to retire early could switch to part-time work or pursue passion projects. 'You've got these great skills, and the companies are happy because they don't have to pay you a full-time salary. Win, win,' Mr. Bridge says. When asked why financial, real estate and mortgage advice hasn't evolved as quickly as the buyers it serves, Mr. Bridge is blunt: A lot of advice is tied to commissions, which can conflict with clients' best interests. 'Of course, the realtor wants you to buy the house. Of course, the bank says you're qualified for a million-dollar mortgage.' When the Ealeys moved to Japan in 2009, buying a house wasn't top of mind. Instead, they prioritized giving their two sons the experience of growing up abroad. 'We wanted our kids to grow up in a different culture and to learn a different language,' said Mrs. Ealey, who is now an assistant professor at Toronto Metropolitan University. She worked in research while Mr. Ealey, a high-school principal, taught at an international school. The family rented in Tokyo for 10 years, using their savings to travel back to Canada regularly to see family. 'We spent a lot of money on flights,' Mr. Ealey said. 'We felt it was important our kids didn't go 10 years without being close to their family.' They returned to Canada in 2019, hoping for a smoother transition than they got. Mr. Ealey was job hunting and Mrs. Ealey had just started a postdoctoral role at the Hospital for Sick Children. With no savings and no place to live, they moved into Mr. Ealey's parents' basement in Brampton for nine months. 'We didn't have a place to stay… we didn't have any money,' Mrs. Ealey recalled. 'The situation wasn't the greatest.' They began looking for rentals, but when Mrs. Ealey's brother spotted a semi-detached raised bungalow nearby listed for $640,000, the couple reconsidered. It felt like a stretch, but with financial help from both sets of parents, they scraped together a 5-per-cent down payment. 'This was the best price we're going to get at this time,' Mr. Ealey said. They bought their home just before the COVID-19 pandemic hit. It's located five minutes from a train station and has three bedrooms upstairs and two in the basement – which they rent out for extra income. Mrs. Ealey admits it's not her dream house, but after some renovations, she says it's more homey. 'I never thought that we'd have to be in the house and you have to have a renter to survive,' she said. 'We have four people, two big, grown boys, and we have to live just upstairs, which feels, to me, like an apartment.' With 25 years left on the mortgage after a recent renewal, the couple may be 75 when it's finally paid off. But for them, buying in their 40s came down to timing, not failure. 'We had different priorities,' said Mr. Ealey. 'We've done our travel. We've lived.' Mr. Ealey, who has a good pension, feels secure about retirement. His kids could also help with the bills when they're older. 'There's something about just owning a home ... having something to hand down to your kids,' Mr. Ealey added. Takeaway: Prioritizing life experiences can still lead to stability if you have help from family, are willing to rent part of your home and feel comfortable depending on your kids in later years. When business analyst Kevin Moroso crossed into his 40s, his priorities shifted. 'You're suddenly like, I'm 25 years from retirement. Am I going to be renting in retirement? And what happens when I'm just on a pension and my rent goes up? Wouldn't it be nice to own a place, pay it off and then I don't have a mortgage to pay when I reach 65?' That thinking pushed Mr. Moroso, now 44, to enter the housing market last year. He purchased a $610,000 estate-sale home on Gabriola Island, a few kilometres east of Nanaimo on Vancouver Island. He put 20 per cent down for the three-bedroom, two-bathroom house that sits on nearly an acre of land. He attributes his find to luck. 'The daughter just wanted to sell quickly,' he said. For years, he had resisted home ownership in Vancouver, where his budget would have only stretched to older apartments, such as ones built in the 1990s and already showing signs of wear. He couldn't justify sinking his savings into a property that might not hold its value over the next 25 years. When the pandemic hit, Mr. Moroso found himself locked down in a small East Vancouver rental, paying $1,600 a month. He had no savings – he'd just returned from a year of gallivanting around Berlin. But with nowhere to go and nothing to spend money on, he decided to make a drastic change and start stashing away his earnings. 'I kind of had gone through this complete life change to save up money. I wouldn't even go out and buy a coffee.' Over four years, he diverted half of every paycheque into savings, contributing to his RRSP and a new first home savings account. 'I used all those vehicles that were available for me,' he says. He also put money into GICs for short-term stability. Combined, he pulled together enough for a down payment – and got additional help from tax breaks, including an $8,000 property transfer tax rebate from the province. Today, his mortgage is around $2,700 a month – higher than rent. But with a defined benefit pension and a plan to pay down the mortgage quickly, he's confident he'll be set up for retirement. 'Technically, I'd be 69 if I go by the 25 years, but I do want to pay that down faster.' He rents out one room to vacationers and has space for visiting family. It's stressful at times, because rural living brings surprise expenses, but Mr. Moroso says he has no regrets. 'It's a different type of fun over here. It's a lot more relaxed … people are chill.' Takeaway: It's possible to save aggressively for a down payment after living it up in your 30s because you likely have a higher income at that time. And if you're open to leaving the big city, you can get more for your buck. Finally has a steady career and enough savings, and the market dipped At 40, Alicia Ho has finally stepped onto the property ladder – on her own terms. The senior manager at a human-resources technology company recently bought a one-bedroom-plus-den condo in downtown Toronto for $520,000, and moved into the unit in June. She was able to make a 20-per-cent down payment, but getting to that point hadn't been quick or easy. Ms. Ho's journey to homeownership was shaped by detours. She worked abroad for nearly a decade, switched careers and had to start over. 'Every time I graduated or got into the work force, there was always a recession. It was a constant struggle to even get a decent job,' she said. She switched jobs last fall, landing a role that bumped up her salary and felt like the right long-term fit. Once she passed her probation period, she felt stable enough to make an offer in January, 2025, while also taking advantage of softening condo prices. Though she still doesn't feel she's hit a truly 'comfortable' income, she saved enough: the 20-per-cent down payment, plus a sizable reserve for emergencies. The dip in prices meant she could even set aside some money for renovations. To make the move, she had to unlearn financial habits passed down from her immigrant parents, who encouraged saving but not investing. Over time, she taught herself to build credit and invest strategically. While saving, she rented a two-bedroom unit near the Distillery District with a roommate, paying $1,375 for her share. The apartment and landlord were great, but she was ready to have her own space. Still, buying alone came with hesitation. 'I was very, very reluctant to take that step,' she said. 'Because it is an extra amount of stress on my finances.' The 700-square-foot unit she now calls home isn't new, but it's spacious and well-priced. While she once considered leaving Toronto for more space, she's unsure how long her remote work set-up will last. Ms. Ho knows a 30-year mortgage means payments into her 70s, but ownership gives her more control over her future, a chance to build equity and to eventually 'level up' to something bigger. Takeaway: When you're in the market long enough, you recognize trends. Alicia saved up and took advantage of the most recent market dip in the condo market. Michael Van Tomme became a homeowner in Moosomin in his late 40s – a milestone that came relatively late in life but marked a significant step toward establishing roots in Canada. Originally from the Philippines, Mr. Van Tomme moved to Canada in 2020 with his four kids to join his wife, 46, who had arrived two years earlier for work. In 2022, they purchased a three-bedroom detached house for $250,000, making a 5-per-cent down payment. With renovations, they were able to add two extra bedrooms in the basement. For the Van Tommes, moving to Moosomin wasn't just about affordability, it was about a fresh start and building a future. 'The reason why we came here is really for our kids ... There's more opportunity for our kids here in Canada, especially with free education,' the car sales consultant said. The couple's decision to buy a house was driven by a desire to build equity and create a permanent home for their family – something that felt even more important after leaving behind their place in Manila and starting over. Mr. Van Tomme acknowledges that renting might have been cheaper, but he values the long-term benefits of homeownership. 'If you like to build equity, and you like to build your roots in the community… It's more of a permanent situation,' he said. Moosomin, a town of 2,700 near the Saskatchewan-Manitoba border, is a growing hub for newcomers, including a Filipino population about 300 strong. The Van Tommes are heavily involved in the community and drawn to Moosomin's slower pace of life, low crime rate and tight-knit feel. 'We like it here,' Mr. Van Tomme said. His experience reflects a broader trend among immigrants in Canada, who tend to place a higher value on homeownership than other Canadians. Statistics Canada indicates that immigrants are more likely to devote a greater share of their income to buying a home. As Mr. Van Tomme looks toward retirement, he remains optimistic. He plans to pay off the mortgage sooner than scheduled and considers options such as downsizing or renting the property after his kids find their own paths. Takeaway: For many immigrants, homeownership in Canada is less about financial convenience and more about building roots, stability and a better future for their families. Nitin Madhvani works in sales at a tech company and his wife works in hospitality. In 2021, the couple was renting a condo in downtown Toronto when they found out they were expecting twins. 'We just immediately needed more space,' Mr. Madhvani said. To accommodate their growing family, they temporarily moved in with his wife's parents. Mr. Madhvani spent hours walking around the neighbourhood, looking at homes for sale. 'It became clear that proximity to the grandparents was going to be a huge game changer,' he said. After a month of searching, they found a home they could afford and bought it by summer, 2022. The house was just five minutes away from his in-laws, making it an ideal choice. Mr. Madhvani describes their $1.2-million home as a 'cookie-cutter' build 'put together with duct tape.' The house has four bedrooms, 2½ bathrooms and a one-car garage. Although Mr. Madhvani and his wife have decent incomes, the financial strain of homeownership is significant. The mortgage, along with the cost of daycare for their twins, has put pressure on their monthly cash flow. 'None of it really just feels good,' Mr. Madhvani said. 'I worry about ... being able to keep up with that standard of living that my parents were able to provide for us.' Mr. Madhvani isn't too concerned about retirement, an outlook that differs from the traditional path his parents followed. His parents, both immigrants, worked long careers and retired in their early 60s, a familiar story for first-generation Canadians. 'I don't see that path being available to me,' Mr. Madhvani said. He's noticed many retirees moving abroad, taking their savings to lower-cost countries, and wonders if that might be their reality some day. The pressures of balancing work, the costs of homeownership and a growing family have made Mr. Madhvani question whether buying was the right path. He often wonders, too, if they could be living a better life in places such as Dubai, where they could afford a nanny, or outside Atlanta, where they also have family and could get a larger home for a fraction of the cost. 'Could we be better off elsewhere if we're willing to do what our parents did, which was like, pick up and go?' But for now, they are making it work, and enjoying the perks of being close to his wife's family. Takeaway: Buying later in life with solid careers and incomes can still make you question whether following the traditional path is worth it. In 2021, just shy of 50, Caroline Nadeau bought her own home – a two-bedroom condo in a six-unit townhouse-style building in Montreal – for $335,000. She put down $65,000 with help from her RRSP. It was a milestone she once thought might never happen. When she separated from her husband in 2009 after 20 years together, Ms. Nadeau found herself starting over in every sense. At the time, the couple lived in Toronto and owned a house in which they were raising two daughters. But when the relationship ended, so did that stability. 'I started literally from scratch, going from that environment to living on my own,' she said. They sold the house and split the equity evenly. Ms. Nadeau walked away with $18,000. During the breakup, she was on a hiatus from her career in the insurance sector, teaching French and earning under $10,000 a year. She chose not to pursue spousal support to prove to herself that she could make it on her own. She rented for the next decade, scraping by and rebuilding her life. 'There were times I didn't know how I was going to feed them,' she said. 'Cash flow became a very, very big problem, especially with the girls.' After the separation, Ms. Nadeau lost her credit rating and turned to payday loans to get by. She borrowed small amounts and paid them back quickly to rebuild her credit and put whatever she could into investments. By 2017, she'd returned to her corporate job and moved to Montreal for a promotion. Though she didn't expect to stay, a new relationship kept her in Quebec. Ms. Nadeau also wanted to build financial resilience. 'That path was real estate, and the fact that I was in Montreal, as opposed to Toronto, was a perfect way to get into the market.' She describes her mortgage as manageable and less than what rent would cost, so she's not in a rush to clear it. Her plan is to rent out her condo soon and move in with her current partner. When retirement comes, she might sell. Looking back, she felt she 'had the discipline of a soldier.' When her parents gave her small amounts of cash for Christmas, she'd buy an exchange-traded fund. Today, Ms. Nadeau is on track to max out her tax-free savings account. Her advice to others? 'Even if you buy later in life… at least you get your feet in.' Takeaway: It is always possible to start over.
