Just before the beginning of WWI, new houses came to the real estate market with a price tag of less than £750, which is a little under £50,000 in today’s money. Skip back to today, and the average house price in the UK is likely to set you back over £200,000. That’s four times as much as in the late 1930s, which is a significant increase in 80 years. While the real estate market has been fluctuating a lot, the rising price tag trend started under Margaret Thatcher. In other words, it’s likely that houses bought before the 1980s didn’t affect homeowners’ budget as much as they do now.
Indeed, when you consider the average salary today of £27,600, it’s difficult to imagine how young adults are ever able to buy a property. But, Millennials and Generation Z are successfully working towards the dream of homeownership. Here’s how they do it – and how you could as well:
They consider their mortgage carefully
Taking a mortgage is a big decision in the life of anybody. Young homeowners, however, are becoming increasingly aware that the mortgage agreement they signed for the purchase of their property might not be the best solution after a few years. Indeed, as your finances evolve, you might find yourself in a position where you wish to transfer your mortgage to another lender who offers a better deal for your current situation. Being savvy about their money borrowing policies can help to pay back mortgages sooner and ease the financial pressures. Typically, you’ll work with solicitor professionals such as the Bannister Preston team to help you move your mortgage agreement and other administration fees to a new lender. If you’re switching contract with the same lender, you don’t need any conveyancing service to the transfer.
They turn away from takeaways
Cooking at home is becoming a trend again. Indeed, the abundance of YouTube channels showing us and teaching us how to make the most of delicious ingredients or how to recreate meals from some of your favourite movies – and yes, that includes the Big Kahuna Burger from Pulp Fiction. The advantages of cooking at home are, of course, multiple. For a start, you can spend a lot more time enjoying each other’s company and relaxing after a long day. Additionally, you can also try out new flavours and experiment with your ingredients in ways that no takeaway can match. But, when it comes to affording your new home, cooking saves a tonne of money.
They are good at budgeting
Who first said that Millennials and Gen Z were unable to keep to a budget? While young adults tend to have a bad rep when it comes to their lifestyles, the truth is that we actually have a pretty good grasp of budgeting. Indeed, 80% of young adults have a budget they follow, while only 6 in 10 Baby Boomers admit working with a budget. Indeed, Millennials and Gen Z have the advantage of being able to use everyday technology to support their budgeting plans, such as relying on an app to track their purchases and monitor their spending habits, for instance. Because tech tools make it easier to stay on track, young adults can also include additional financial strategies, such as investing or working with professional advisors for support.
They have mastered the art of minimalism
Minimalism is not just a brilliant decor idea for your living room; it’s a complete change of lifestyle. Influencers such as Marie Kondo have encouraged young generations to follow a less is more motto when it comes to their interiors. Kondo favours tidying up and decluttering your home to remove everything that doesn’t spark joy. Decluttering is a popular approach to generate a side hustle income, as you can sell everything you don’t need or want anymore – as long as it is still in good condition.
They are DIY enthusiastic
Last but not least, the craft trend is taking over British households by storm. More and more people are turning to the Internet to figure out how to fix their gadgets and repair minor breakage at home. As a result, enthusiastic crafters are able to save money every day with simple DIY tips. More importantly, talented craft hobbyists can even make money by selling their creations online. Platforms such as Etsy or eBay are a brilliant place for crafters who can turn their hobby into a lucrative side hustle. Some can even make it their full-time business!
In conclusion, young adults are a lot savvier with money than previous generations. We likely have to thank our parents and grandparents for exposing us from an early age to the risks of financial instability. As a result, Millennials and Gen Z are more likely to keep their budget on track and afford a property without dragging their finances in the red!