The word deposit isn’t exactly the favourite word of many property buyers, particularly first-time buyers. Data suggests that potential first-time buyers need to save for around eight years to generate a sufficient deposit that enables them to purchase their first home.
Having to save at least 20% of the price of a property, could mean the deposit required to make the purchase is anywhere from £80,000 plus in London and closer to £20,000 on average elsewhere in the UK.
As house prices continue to steadily climb, so too do deposits, so how can the millennial generation, the first-time buyers of today, realistically save for such hefty deposits?
The millennials – the twenty and thirty somethings of today – are fondly teased for their love of life’s ‘little luxuries’, with a particular penchant for cups of coffees, iced lattes and avocado toast!
In fact, such is the millennials’ reputation for their frivolous spending on avocados, that one property developer advised the younger generation to stop buying avocado toast if they’re serious about saving for a deposit on a home.
Tim Gurner, a luxury property developer in Melbourne, caused outcry amongst millennials, by implying on a television programme that youngsters are unable to buy property because they’re wasting money on expensive coffee and fancy toast.
“When I was trying to buy my first home, I wasn’t buying smashed avocado for $19 and four coffees at $4 each,” said Gurner .
Whether Millennials buy avocado toast or not, the message is, that in order to put themselves in a realistic position to buy their first home, they need to have a deposit of 20% of the property’s value put down and therefore need to be committed to saving for a deposit.
If you are a buyer looking to purchase a property, whether it’s your first, second, third or umpteenth home, our property experts are here to help meet all your buying needs and help you find the perfect home