In a recent survey by Special K, participants of each generation were asked about the ambitions on their bucket list. While older generations opted for skydiving, tattoos and even having a one night stand with a stranger, the dreams of the young were far more traditional.
In fact, for the younger generation, the three most popular fantasies were owning their own home, getting married and driving a nice car.
Can Dreams Become Reality?
While many people in older generations will consider these aspirations to be a little mundane, in reality, the potential for the younger generation to achieve such ambitions is more challenging than you may think. In the last ten years, the number of people aged 25-34 that own their own homes has fallen from 59% to just 36%, showing how hard it is becoming for younger generations to acheive the most basic of goals.
The Reasons for the Shift
Without doubt, the most significant reason for youngsters be unable to get on to the property ladder is the sheer cost of buying a property. The Office of National Statistics has shown that while one in three 16 to 24 year-olds could afford their own home in the late 1980’s and early 1990’s, today that figure has dropped to a mere one in ten.
And though the government are working towards making cheaper housing accessible across the country, it is still a fact that most young people simply cannot afford to make that first move on their own.
How We Can Help
When it comes to affordability, for many youngsters, it is not the actual cost of the mortgage that is the issue, but the size of the lump sum required to get on to the property ladder in the first place. Interest rates and mortgage levels are falling to record lows, which suggests that the actual cost of the monthly charges is not the problem.
But until the younger generation can make that first step, they simply cannot take advantage of the benefits that owning your own home can bring. The combination of stamp duty, solicitors’ fees and the deposit required to buy a house is now the biggest hurdle that young people face when trying to buy a home.
But, as parents, there is a lot we can do to help.
For example, we can use the fact that we have been able to own our own homes, to help future generations do the same.
If there is sufficient equity in your home, it may be possible to extend your mortgage to provide the lump sum required. A secured home loan could provide the necessary liquidity. It may even be possible for your child to take responsibility for repaying the debt, which could be extended over a considerable amount of time.
One of the key benefits of being a parent is being able to help your children fulfil their dreams. And this is one of those times when we can really make a difference.
By Harry Price
Harry Price is a writer and artist living on the south coast with his wife and 3 ‘mad’ dogs. In his spare time he loves cooking, reading and socialising with friends.