Millennials in the house - what will entice you to save up for a house?

[AteRiri]

I read that millennials are all about experiences and not accumulating/owning things.

I'm curious...how can you be enticed to save up for a house?

I am actually really curious about what marketing tactics would work in order to entice this age group to save for a house.

You clearly don't get it if you think marketing will solve it. But ok.

1. Private rent is more than mortgage payments..how can you save a deposit when you're paying that much out every month to a landlord?
2. People have the income for a mortgage but it's the deposit that's the issue
3. Student loans are going up and up.
4. Many graduates are doing jobs they don't need their degree for and for lower pay than actual graduate jobs
5. More competitive industries have worked out they can cut their wages bill by employing interns for nothing. So to get a foot in the door that's what you need to do
6. House prices are 4 times a single persons income here so we can afford to buy. But in other areas it's 10 times the average income.
7. Instead if affordable houses, the government's help to buy just makes it easier for people to borrow more money to buy houses at market rate (odd give ln excessive loaning contributed to the crash)
8. One bank has a mortgage thay can be guaranteed by parents savings... because most people have parents who can shift thousands of spare pounds and lock it in for years.

I'm lucky. I'm buying. But if there was no chance of being able to, I could either waste my 20s scrimping go buy a 1 bed flat one day or I could spend it on travel and at least have done something fun with my 20s. That's what lots of my friends have done. Can't say I blame.them.

So marketing to solve all of that... hit me with it.

Yes, but what I meant was, how to entice a millennial without much disposable income to actually start to save up for a house. It does not mean buy now, but save up to buy eventually. What marketing tactic would work, given that context.

I do agree that building up savings behind you is really important, whatever you are saving for. It worries me when I hear friends say that they couldn't manage a month without their salary - what if they get sick?
I don't think marketing has much of a role here. Higher interest rates would encourage saving, at the moment it can feel pointless to save as everything gets more expensive around you. Of course higher interest rates would be unpopular with those mortgaged to the hilt. The current situation is dysfunctional and unsustainable and I think there will be a painful readjustment at some point.
Others won't be able to save as they are spending everything on outgoings, especially those renting solo or with young children.

I'm an older millennial. We own a house but we both had very well paid jobs and a DC.

Friends that don't, either do not have the income as they've been priced out of the market or don't see it as a priority and would rather spend their money on other things like nice cars, recreational activities or renting in expensive areas.

What worries me more those with a lack of savings to weather a storm, not those without equity in bricks and motar!

I'm a millennial. The simple truth is, at the moment I don't earn enough to afford to buy a house. Or rent a whole flat. Even a houseshare would eat up most of my salary. My hometown is commuter central, and therefore expensive.

I am starting a training course in September, so hopefully by Sept 2018 I might be able to think about moving out.

I'm a millennial and we have just bought our first home. It's taken 6 years if scrimping and saving (and then a suprise generous donation from my parents when my grandmother passed away, otherwise we'd still be saving) we are also lucky that dh earns a good salary and house prices are relatively cheap in our area. We just wanted the security for when we're older and to not waste money on rent any more (our mortgage is a lot cheaper!)

I'm at uni and haven't started saving yet because my student loan is less than my rent so when I worked it was to cover living costs. I plan to save £30k over the next 3 years (will be living at home for half the time). My boyfriend will save more and together we will buy a house. If we aren't together still, my savings will only be enough to buy a 1 bed flat where I live.
This of course is assuming everything goes to plan !

I'm motivated by ;

• Not wanting to pay someone else's mortgage
• Not wanting to live my parents forever
• Being able to control my living space (e.g. sorting repairs ASAP)

Saying that, I will still be enjoying some experiences whilst saving. No reason I can't have the best of both worlds right !

OP, that wasn't the point I was making
It isn't about how daunting it is to commit to a mortgage etc. The point that people are making on this thread is that most millennials can't save for a house because it's so far removed from their salary...
I really don't understand why you keep mentioning marketing techniques when it's the circumstances that need to be changed? Others have already mentioned this ?!?

I'm a millennial and was one of the last to get a 100% mortgage when I was 21. I'm now 29 and still live in the small flat in the centre of town with no outside space, only now with a husband and 2 children. We can't move because the leap from a 2 bed flat to 2 bed house is £100k and we have no hope of mortgaging for the difference.

I think the 100% mortgage was a great thing. Mortgage was same than rents but it got people on the ladder. Now the ladder has been pulled up. If I was trying to buy today the end goal would be unachievable so I'd make different goals instead.

Much cheaper private rents to allow them to actually start saving.

We've saved for years and now finally have a five percent deposit. We can only buy with the government help to buy scheme now as nowhere accepts us with 5%. To save longer would mean putting starting a family on hold and considering we are thirty and have saved for years we could be forty by then. We pay over a grand for rent because we are in the commuter belt. 2 bedroom flats here are over 300k. We are looking a bit further afield where we can get something between 270 and 300k hopefully.

It's just a bit depressing. No amount of saving will enable us to save a huge deposit while paying rent. It's not that we can't be bothered. It's that we can't do it.

We've just applied for a mortgage and I'm worried we won't get accepted somehow

All of this is despite both of us having been to uni and working as a teacher/in the city by the way.
And no jobs don't pay double down here.

Can I ask what defines a 'millennial'? I'm 30, am I one?

I'm a millenial and couldn't wait to move out of my parents house. Bought in 2013 with dh when I was 23.
For me it was about financial security and putting down roots and starting a family.
We have been in this house for 4 years and are looking to make our second move next year!
But I was fortunate to be able to have the income from me and dh salary to save for a deposit and get on the property market at 23 I am aware that's not very usual as an example of our time

I'm 20 and still at uni - with my student debt I don't think I'll ever be able to afford a house but I don't think I want to buy one.

Yes it would be nice to have somewhere that was my own, however I worry about keeping my job and know I may have to move for that so having somewhere permanent isn't that great and having the option to move around with no massive strings attached like selling a house would be best.

I really don't understand why you keep mentioning marketing techniques when it's the circumstances that need to be changed?
Because obviously what we're all saying is wrong and we're so silly and impulsive that all we need is a little gimmick to make our silly 20 something and 30 something brains realise that saving for a house would be a great idea.

So much eye rolling going in each time they mention marketing. Sort the system out because those in our parents generation kicked away the ladder having had low house prices, jobs for life etc. No slogan or mascot is going to change the system

"What marketing tactic would work, given that context."

This is the crappiest most patronising cloth-eared piece of shit ever.

(I am not a milennial)

What I worry about is that, while so many young people are so desperate for security which is so hard to come by in so many contexts (so few permanent contracts on decent money, so hard to buy a place and impossible alone, flaky landlords, crumbling welfare etc) - how much of an incentive is this for people who, on paper, have their whole lives ahead of them, to stay in crap or even abusive relationships? How can you make it alone, and so what does that mean to young people's tolerance for poor treatment in a relationship?

Of course, in that context, if people have just let go of the idea of security and do not bother to be desperate for it, perhaps that makes them more resilient, more realistic

Are you researching for a dissertation or similar op? The question on its own seems a little simplistic. Before considering what marketing could entice a group to buy, surely one needs to consider what the barriers currently are and why, or if, the group should be enticed?

I'm a millennial (just) and have been a mortgaged home owner since 18, but I have millennial friends who aren't remotely interested in home ownership for lots of reasons eg they need or want freedom to move around for jobs (jobs for life aren't really a thing now as they were for previous generations), they don't need or want the (perceived) security of home ownership, they don't want dc so have no drive to have a family home to leave to the next generation.... I'm not sure marketing, however clever is going to do much to change those reasons

People are responding rationally to the context they are in re housing. If you think their behaviour should change you have to work on changin that context. The uk has been systematically producing far fewer homes than are needed for decades, and vested interests keep prices high. Th market is buoyed by a huge influx of state funds both via help to buy schemes and housing benefit.
This on top of lack of supply and low interest rates makes housing an investment for owners and landlords.
If owning a house or any home requires an unreachable salary and levels of permanence the job market doesn't offer, marketing will not be the answer.

Marketing? Entice? What are you on?

I, and my friends who are also homeowners, are only able to be based on sizeable inheritances and bank of Mum and Dad.

A lot of "Millennials" don't have enough disposable income in order to meaningfully save. I saw a post on here not long ago about how young people were wasting their money on Starbucks. It's just the idea that you could ditch the Starbucks and get a house instead - it's nonsense. I was lucky enough to buy a house because I had a partner with savings, and received some money from a relative. I also have regular, well paid work so I am able to faithfully make mortgage payments. Let's take an example of a "Millennial" (ridiculous word by the way), who doesn't have family or a partner to help them, who is on an unpaid internship or minimum wage work - how are they supposed to save up for a mortgage? Even people in paid work are most likely paying extortionate rent and bills, so where is the leverage to save a decent chunk every month? It's not about preferring to spend money on experiences - it's about NOT HAVING THE MONEY to save.

Sorry, I get quite cross when young people are given a homogenous label and treated as if everyone in that age group has the same level of income, same goals and aspirations, same political viewpoints. They don't. Don't judge young people for not being on the property ladder - in all likelihood they haven't rejected buying a home...they can't afford to save for one, full stop.

I'm 32.

I'm a postdoc academic, which means I spent 7+ years doing degrees to train to be the person who teaches your children at university. Now I'm competing for jobs that can last as little as 9 months and pay as little as a 'stipend' of £3000pa. There are a lot of us competing for permanent jobs and not many jobs. Someone who is 'successful' can expect to spend about 5 years on temp jobs. So most of us are 30 at a minimum when we get a first permanent job.

Before you start wondering patronizingly whether we should all just drop out and do something else, remember that the university system relies on the casualised labour we provide.

And that is why I haven't bought a house.

Im a millenial. We have 3 kids. We rent. We would live to buy but we donf warn enough to save enough for a mortgage. Why have kids i am sure you will ask... becuse if we didnt have kids, we still couldnt afford a deposit on a house. So why should we be childless as well. My hubby is older as well so we dont want him being an 'older' dad and struggling down the line.

Haha NotCaryl - that's the exact thread I was thinking of. God, these blummin' Millennials...if they only didn't buy Starbucks they'd be homeowners by now

Now the average deposit a "millennial" needs is greater than the value of our first flat, house prices are many multiples of their incomes and they leave uni (assuming they do go) saddled with an ever increasing amount of debt. Meanwhile it's costing more and more each year to rent privately, zero hours contracts are everywhere and it seems really hard to get a decent-paying job and work your way up / get pay rises.

I can see why they'd want to spend their money differently to how we've chosen to spend ours. What's the point in further beating themselves with a stick. They need different priorities as owning a house just isn't achievable.

The government has a huge problem when they get to retirement age unless they start acting (which they won't!).