Surveys consistently show that it’s becoming increasingly difficult to buy a home. For many young Brits, buying a home has become a statement of financial investment or commitment to a partner. With new research from icount, showing that 60% of Brits think they will own a house by the time they are 30.
Why are Brits obsessed with owning a property?
Properties are not only expensive to buy, but also to maintain. The study also shows the regional differences. In the North East of England, there are higher aspirations of owning home before 30 as opposed to those living in the South East. Those in the South East do earn more, but the difference in mortgage commitments far outstrip the difference in incomes.
Compare this with 30 years ago where housing was considerably cheaper than it is today. The reality it is, that for the older generation, they have benefited immensely from the rising prices. Not only that, but older property owners who still have mortgages have benefited hugely from the very low interest rates in recent years.
With low risk, small mortgages in relative to their property values, this generation have been able to pay much less interest than people who are have recently bought now.
Should you buy a house in your 20s?
A lot of people say no, that homeownership is a scam, or that millennials will never be able to afford one. But still many of us still aspire to own one buy by the time they reach 30
Unlike other nations, the British economy is built on home ownership. With the house prices having risen to levels that their parents and grandparents could never have imagined, our young generation do not seem to be dissuaded from buying a property.
There is good reason for this. Houses prices have risen steadily for over fifty years. For generation Y and Millennials, they seem content in the knowledge that property is risky in the short- term, but as a long- term investment that is high yielding. Property is, therefore, a better investment for ordinary people than anything else, so it’s no surprise that people are wanting to buy property than save in bank accounts or stocks
So the fact that property is expensive, and becoming ever more expensive, is actually one of the principal reasons why so many people are trying to save up for their own.
How can you save a deposit?
Saving a deposit for a house or flat can seem a daunting task, particularly with house prices continuing to rise. The Government’s Help to Buy scheme has definitely eased the strain on first-time buyers by increasing the amount of 95% loan-to-value (LTV) mortgages available.
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