Common misconceptions amongst young people and purchasing a home.
Halifax have recently found that many young adults have interesting – and worrying – misconceptions about the housing and mortgage market.
1 in 5 (20%) of youngsters between the ages of 11 and 14 believe the amount they can borrow on a mortgage has no limit, while 33% of this age group expect their parents to cover the entire cost of their house.
These misperceptions in childhood remain in place much into adult life, with a quarter of those aged between 18 – 21 expecting that they will be homeowners by the time they are 25. Which, is far younger than the actual average first-time buyer in London which is usually 30 or 32 years old.
Despite this, homeownership remains a big aspiration among young people with 59% of 18 – 21-year-olds saying that they feel it is important to own a home.
Alex comments “Although buying a property is one of the most important financial decisions you’ll ever make, becoming a homeowner seems like a faraway dream for Generation Z – many of whom are likely to be flying the nest soon.
Although the research has found that the majority of 11 – 14-year-olds grasp what a mortgage is, only 1 in 10 young adults think that stamp duty is money to pay for stamps! It’s clear to see that this age group need some help getting a clearer understanding of what is involved, and plenty of support for them to get their feet on the property ladder”.