Millennials are growing up fast. They now account for 35% of the property market and 65% of those are first-time buyers. Whilst getting on the housing ladder poses challenges for the younger generations, it’s important to keep in mind the five following points:
How are your finances?
Be prepared when you take that trip to the bank manager. Go through your accounts, streamline those monthly direct-debits and forgo the Friday night takeaway. Every little helps get your first step on that ladder.
What about your credit score?
Check your credit score with any number of free websites, moneysupermarket.com has a great article on this.
Credit gremlins can creep in from missed bills, lost post or if you have changed address several times. Give it a polish up before you start your house hunting.
How much do you need for a deposit?
Some mortgages ask for 20% of a home’s price, some deposits are less but the more cash you can bring to the table the better. You will be more likely to get accepted for a mortgage and be able to negotiate a better rate.
Are you settled?
Many millennials are new to their career, so it’s important to ask whether you feel settled enough in your job to make the commitment of buying a home. You don’t have to stay in it forever but it might not be a good idea if you plan to move again after a year or two.
What kind of home do you want?
We’ve all thought about a sleek apartment with a la-z-boy but if you are settled then you might want to think more long term. Maybe you’re looking to get married or have plans for children, they all come around sooner than you think. Consider the type of home you might want for the next 5 – 10 years.