Wait Until You’re 40 to Get Onto the Property Ladder
That’s right. First time homebuyers are now being advised to wait until they are 40 to get onto the property ladder, due to the fierce competition for homes.
With bidding wars escalating for property, estate agents are reporting that many homes are now reaching their asking price – if not more – because so many people want to invest.
Take this statistic for example.
During July 2009, there were 292 house hunters to every estate agent who had 59 properties for sale. You only have to take one look at this figure to recognise that the property market is hotting up. It is electric.
Yet I have to admit that I am not sure whether to be impressed or concerned.
On the one hand this recommendation by housing experts for homebuyers to wait – unless they can get family to help them – is great news for investors like you and me. If they can’t buy, then they can easily rent, which means an increased tenancy looking for rental properties.
But with terrace properties selling for more than they fetched 2 years ago this is a dramatic increase considering average property prices have dropped 20% in the last year.
The problem is the growing housing shortage. Even with many first time buyers refraining from making property viewings because they know they have not got the cash to invest, there are still hundreds of homeowners to every property – creating even more competition for investors like you and me to invest.
According to the Council of Mortgage Lenders, the average first time buyer is 37 years old, whilst those who receive help from their parents are averaging at 31.
Either way, these ages indicate how hard mortgage lenders are making it for homebuyers to get onto the property ladder. Without outside aid, they simply cannot afford the 25% deposits to invest.
Wendy xx
