The kids of today have got it easy… or have they?
We’ve all heard the expression “the kids of today have got it easy”. Well, interestingly, the ‘kids of today’ are starting to kick-back.
Of course the ‘kids of today’ have technology on their side, along with everything being so convenient and available whenever it’s needed. For example, walking or cycling anywhere is almost unheard of and food is accessible on almost every street corner.
But, the ‘kids of today’ do have the significant challenge of getting themselves on to the property ladder, with the average age of first time buyers now being reported at anywhere up to 38 years old.
Statistics show that the average house price at the end of the 1960’s was less than £4,000, whereas in recent times this has soared to over £220,000. That’s over 55 times more. Compared, however, to incomes being reported to have increased by less than 30 times more over the same period.
There’s then the matter of saving for a deposit. Many major banking organisations are writing papers about the changing trends and saving habits of the younger generations and how the behaviour now tends to be ‘spend’ rather than ‘save’.
Why is this? Could it be the very technology that we suggest gives the ‘kids of today’ an easy life that’s actually making life more difficult?
In this unrelenting consumer world we live in, the social pressure exerted upon all youngsters to have the latest gadget is immense. Large capital expenditure items such as mobile phones, tablets, TV’s and games consoles devalue, as a percentage, quicker than a supercar. And their useful life-span is less too!
So, with all of their income being spent on devaluing gadgets (and we’ve not even considered the spend on latest designer clothing items or social spending habits such as eating out), saving for a deposit is either low on the priority list, or not considered at all because there are no funds left at the end of the month.
The question therefore is “how do we break this cycle?”
There are also many ways of creatively financing the purchase of properties, even for first time buyers, which allows them to get onto the property ladder. There are numerous books on the subject, along with various courses, seminars and webinars available about the different strategies and approaches. The education available is plentiful and significantly increases the chances of success in property investing, whether it’s for a home or to start a property portfolio.
Some of these books and seminars are available free of charge and give a good introduction and insight into the ideas that can help you on your property journey. There are also naturally more advanced courses that require the participant to pay to be involved. However, with a reasonable course potentially costing less than the next latest gadget, there’s only one last question to ask…
“Do I need that new gadget, or do I want to get onto the property ladder?”
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