Young Buyers of Today Face Higher House Prices than Previous Generations
Traits of being young include having hope, feeling like endless possibilities lie ahead, and the future holds numerous opportunities. Those residing in the young category of today in search of housing are facing a challenge unlike any in the past. House prices which are out of reach plague the group which is looking for a way to reach the first rung of the property ladder. According to ongoing data, house prices have increased more than 170% over the past 21 years.
The size of house prices to the young generation must appear like a chiseled mountain with hard to reach hand holds and deep ruts to fall into. These mountains are not only appearing hard to climb, but impossible in many instances. The increase of 170% in house price growth since 1997 is in stark contrast to the 19% increase found in income.
Young buyers do have Help to Buy and other government schemes to assist them in their buying efforts. Although many schemes offer up front incentives, many are hard to accept based on the back end costs associated with such deals. After a specific amount of time, many deals require exceptional sized repayments or balloon type interest rates affecting the amount of the repayment.
After minimal research into the matter, it has been discovered by housing experts that the monthly mortgage payment is not what is holding many young buyers back from purchasing property. It is the down payment which accompanies property. Most properties require 20% down unless combined with a special scheme.