Millennials, as defined by the duo Neil Howe and William Strauss, are individuals whose birth year fall between 1982 and 2004. Although there are variants of this interpretation, Howe and Strauss’s definition by far is the most accepted given they were the ones who coined the term in the first place.
Millennials exact timeframe of birth aside, the bigger issue is this: are millennials now equipped with all essential faculties to stand on their own in the world of adults?
Millennials and Property
Perhaps one of the most reliable barometers of adulthood is financial independence. This goes hand in hand with your ability invest in property.
According to statistics, contrary to popular belief, millennials are not investment-averse. In fact, 86% of this demographic consider renting as less cost-efficient compared to owning a home.
Meanwhile, among those who have already made the jump into property investment, 80% say the decision has made a positive impact on their long-term finances. Still, it goes without saying that this is a jump not everyone can and should make.
Things to Consider
Your credit score greatly factors into applying for a home loan. Ideally, your debt-to-income ratio should not fall beyond 43% for you to earn the trust of your lenders.
Other considerations your loan provider will assess include your current income and how long you have been employed in your current company.
There is a rule of thumb that your home, or mortgage for that matter, can cost up to three times your gross salary per annum. Anything beyond that figure is a risky investment.
Working with a house buying solicitor could help you better navigate these risks.
In the end, only one question needs answering when it comes to property. Do you think you are financially ready for it or not? Should the former be your answer, then go for it and make other millennials proud.