95% of teenagers plan to become homeowners, with 8 out of 10 intending to buy property in their twenties
A third of teenagers would forgo a gap year to buy property first
. In fact 95% of teenagers plan to be homeowners one day, and the vast majority (80%) intend to get on the property ladder before they turn thirty, according to a survey commissioned by IFA Promotion, the organisation promoting the benefits of independent financial advice.
Half of the teenagers questioned believe they will buy their first property with a partner, compared to just a sixth who plan to buy on their own. But teenagers realise that becoming a home owner comes at a price, with nearly half (46%) saying they would be prepared to curb their fun-loving lifestyles to get a foot on the property ladder. A third of teenagers place owning a house above travelling the world; a fifth would prefer to become a home owner than get married or have children; and four out of ten find owning a property more attractive than retiring early with a fifth (22%) putting property as a higher priority than a pension.
The research also revealed that:
One in ten teenagers would like to keep property in the family and own their parents’ home one day.
A number of teenagers are already aspiring to become property barons; this is more prevalent among boys as nearly a third (29%) would like to own more than one property compared to only a fifth (20%) of girls.
A family house in the suburbs is the most popular type of property to own among teenagers, followed by a smart city flat. Only one in ten aspire to own a country cottage or farmhouse.
As far as mortgage advice is concerned it seems most teenagers still think Mum and Dad know best as half would go to parents or other family members for guidance. However a sixth (15%) said that they would seek professional advice and visit an independent financial adviser (IFA).
David Elms, Chief Executive of IFA Promotion, commented, “The lack of affordable property for first time buyers has not affected the deep rooted desire to own property among young people. Lenders are heavily competing for borrowers’ business which means there are plenty of options for would-be homeowners. Only an IFA can offer the gold standard independent advice to help you review the vast array of products and providers to choose from, along with all your regular outgoings, to find the right mortgage for you.”
To help first time buyers consider their mortgage options, IFA Promotion has produced a free mortgage factsheet, addressing the following questions:
How do I find out which is the right mortgage for me?
Should I choose a repayment or an interest only mortgage?
What do the different interest rates mean?
Where do I turn for advice?