Buying a house is a dream for most people. Young people who want to make London their home need to save for almost nine years, reveals real estate expert Nick Millican. The recommendation for first-time homebuyers is to put aside 10 percent of their salary to save for the downpayment and other fees associated with buying a home.
For young, single, first-time home buyers, 10 percent is still not enough money. Unfortunately, according to the real estate expert, young people’s salaries are not competitive with today’s house prices. Nick Millican reveals it would only take a first-time home buyer about half the time to save if they consider living northeast of London.
Furthermore, the expert explains the cost of living is high in London city, making this almost impossible for younger workers to achieve their dream of owning a home. According to the real estate agent Nick Millican, the hope is as the general election nears, all parties will consider taking the housing problem seriously.
There has been a call for more action when it comes to housing. People are hoping for an increase in supply that includes social housing. As Nick Millican explains, young people do have the option of starting a Lifetime ISA.
The tax-free savings account can help to take a few years off the time it takes to save for a house. As Nick Millican finally explains, the downside to the account is its cap is well below the average price of a home in London. Buyers would be subject to penalties if buying above the account’s cap, according to Millican.