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The idea of being able to buy a house at 25 might seem a pipe dream for many. However, according to Phil Spencer, while difficult it is doable.
On the property Guru’s website MoveIQ, he gave his top tips on how to achieve this monolithic task of being able to buy a house a 25. From skipping your daily Starbucks to tracking down a partner, here are the presenter’s pearls of wisdom on how to hop on the property ladder in your 20s.
Phil Spencer’s tips on how to buy a house at 25
1.Save, Save, Save
‘Save, Save and Save a bit more,’ advises the Love it or List it star. ‘It may sound obvious but there is no way around it. Start skipping on all those little luxuries, the expensive coffee on your way to work, the upmarket sandwich at lunch.’
While these little treats might not seem to cost that much at the time, in a few months or years they could amount to a significant figure to put towards a deposit.
‘A useful rule of thumb is to try and save the equivalent of the mortgage repayments you might expect to save each month, then you know where you’re at,’ adds Phil Spencer.
This is important as it will help you account for how every penny of your income gets spent and will help you save up to buy a house at 25. ‘It might mean a slight lifestyle change, opting for the supermarket own brands,’ says Phil. ‘But that’s the choice.’
3. Find a partner
‘Find a partner, most people who get on the property ladder young do it as a couple,’ explains the presenter. ‘They’re not only able to save more, but you may also have a higher combined income to offer a mortgage lender.’
All the single ladies, you heard the man it’s time to download bumble.
4. Speak to the professionals
We don’t mean the millionaire matchmaker – though that would be handy – speak to property finding professionals and financial advisors.
‘There are professionals whose business it is to help you to find a home to purchase whether you are 25 or 55. Much of that advice is free, take advantage of it,’ says Phil.
‘Talk to an independent financial advisor or mortgage broker for help in managing your finances,’ adds the presenter. Use there advise to put you in the best possible position to potential lenders.
5. Take advantage of government schemes
There are plenty of government schemes out there designed to help get first time buyers on the property ladder. 200,000 households have already bought a new home through the government’s help to buy scheme.
There is also the LISA that helps younger adults to save flexibly for the long term giving them a 25 per cent bonus on savings.
‘There are plenty of people who have defied the dismal statistics and are buying their own home in their 20s,’ says Phil Spencer.
Will you be one of them?