New research has revealed that one in six millennials (16%) are waiting for the death of a loved one before they take their first step onto the property ladder.
According to comparison website money.co.uk, almost half of those waiting are looking towards grandparents for this windfall and a further 41% are banking on the death of their parents.
The survey of 1,000 millennials found that one in 10 anticipate they will get it in the next 10 years and a further 10% believe they might have to wait between 10 and 20 years.
While this might sound mercenary, many feel their financial options are limited with more than half claiming they can barely cover their day-to-day living costs, so saving simply isn’t an option.
A further 40% say they just can’t afford to do it on their own so need to get financial help from somewhere.
Numerous problems are preventing millennials from saving money to get on the property ladder.
Over a third (38%) are waiting to pay off existing debts first and over a fifth of the romantics are waiting until they find love to split the financial burden. For 22%, living for the moment is a priority above and beyond saving to buy a home.
What’s stopping millennials that want to buy?
- 53% can’t afford to save
- 32% can’t afford the area they want to live in
- 19% are scared of such a big financial decision
- 12% are worried about being rejected by the mortgage provider
- 12% worry about the impact of missed credit card payments on their credit records12% don’t know what to do first
- 9% do not have the discipline to save
- 7% have un-authorised overdraft blemishes on their credit records4% have county court judgments
Do millennials know what the options are?
| Shared ownership | Despite the fact this has been around since the early 80s, one in four (24%) haven’t heard of it and just 9% are going to use it. |
| Help to buy mortgage scheme | Over eight out of 10 (84%) millennials are aware of this scheme but just one in three (34%) are planning to use it. |
| Gifting from parents | Almost two out of three (65%) have heard of this but again, just 11% are planning to use it as a way of funding their first home. |
| Guarantor mortgages | 57% of millennials are aware that their parents can ‘guarantee’ their mortgage payments for them but just 6% will use this. |
| Help to buy ISA | One in four wannabe buyers haven’t heard of these – just 38% will use one. |
Hannah Maundrell, editor in chief at money.co.uk, said: “Getting on the property ladder may not be the impossible dream many people think it is. There are a surprising number of schemes that can help those who can’t afford to get a big deposit together, many of which they probably don’t even know about. If parents can afford it, ‘gifting’ money to children or grandchildren can often be a good way to give kids a tax free early inheritance to help with the deposit. Alternatively, parents that are confident in their kids’ financial capability can be a ‘guarantor’ for their mortgage – this might help get them get the deal they need.
“The most important thing to do is to work out how much you can scrape together and be prepared to compromise, you might not be able to afford your dream home when you first buy. You don’t need to be super rich, have wealthy parents or an inheritance before you can buy a house. Just be realistic about what you can afford and do your homework.”
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