Millennials: Make the Most of Your Savings

Put down that avocado slicer, Jean! The ‘experts’ are at it again with their advice for buying a property and it doesn’t leave any room for crushed avo on sourdough. Oh, and you won’t be needing that Netflix subscription before your mortgage application is due. So no more streaming series like – hmm – a human being with an internet connection. Yep, we are as tired as you must be of these inane ideas on saving for buying a property in today’s climate. Unfortunately, due to triple dip recessions, a global pandemic and the chilling fact that the price of the average UK home has increased almost twice as much as the wages of the average UK worker over the past fifty years. *Breathe* it is in fact one of the most difficult times to purchase property as a first-time buyer. But all is not lost, and we are here to give some actual advice, versus unhelpful opinion, on how to get on the property ladder today.

“Stop eating avocados!”

Let’s begin by debunking the most absurd tips from the most unhelpful of people. If you simply stop eating avocado on toast, you’ll be able to buy a property. Firstly, avocados are full of healthy fats and vitamins which are, quite frankly, keeping some of us sane in an otherwise terrifying economy and political climate. Secondly, that £2.50 a week you’re spending on a two pack of avos from sainsbos is quite simply not enough money to help you buy a house. Sure, give it 12,000 weeks and you’d have a 10% deposit saved up for a £300k house. Nice!

Our advice for buying a property:

Start saving on the bigger items. Get serious about your spending and where you could afford to really save some dough. Because the higher the deposit you can afford, the lower the monthly mortgage rate. With a 20% deposit you can bypass PMI, which is the additional payment tacked on by lenders that protects them if you stop making mortgage payments. Real ways to cut down your spending include: checking utility providers for the best deals, looking at cheaper rental accommodation while you save and tracking your spending with handy online tools. But for the love of all things nutrient packed and delicious, please continue to chow down on those healthy toast toppings in the meantime.

“Unsubscribe from hope / apps!”

Recent research from Business Wire discovered that over 70% of Gen Z and Millennials would like to receive a monthly subscription as a gift this Christmas. From music to shopping apps to gaming subscriptions. This is wreaking havoc on our savings account (apparently). How dare you want to live in the 21st century and have access to consumer products on your phone? Invite your other spendthrift-y friends over, light one (cheap) candle and read them some Proust out loud like you all deserve.

Our advice for buying a property:

Aside from the fact it costs less than a fiver a month to subscribe to many of these apps, a huge percentage are entirely free. Once a completely foreign idea to have a CD player in your car (Barry White on the go? What!?), it is no longer a wild luxury to have access to these technologies – in the western world. So relax, log back in to your Apple Music and ASOS accounts and enjoy some window shopping on the go. In fact, our advice is to download more apps with your finances in mind. Think Credit Score monitoring subscriptions (again, many are free), budgeting apps like Money Dashboard and Yolt, and Algorithm-based apps such as Cleo which connect to your bank account and actively help you save.

“Forgo your takeaway coffees!”

Another helpful tip for saving when buying a property, addresses your daily consumption of caffeine, apparently. If only you didn’t need to caffeinate yourself whilst on the commute to your job where you earn money in order to live and sustain yourself in a world riddled with un-ending financial crises and horror then you’d be laughing! Laughing inside your modest one bedroom property that you bought because you didn’t buy 9,000 lattes, in order to afford the 10% deposit on a £225,000 house. Easy!

Our advice for buying a property:

Instead of being in caffeine debt… look at your financial debts! Thought you’d like that one, Margaret. While saving on the small stuff and addressing your daily spending is helpful. Chastising yourself for having a flat white more than once a week isn’t going to get you that semi-detached little number on Blackstock Road you’ve had your eye on. By ripping the band aid off and taking an honest look at any debts you may have accumulated (it’s more common than you think). You’ll be better off down the line when it comes to applying for the mortgage. You’ll qualify for a much better rate if you don’t have other outstanding loans, including that pesky student loan or your credit card(s).

“Quit your streaming services!”

Binge watching Luther and The Kardashians across multiple streaming services, whilst chugging a takeaway mocha and Eggs Benedict is it? How dare you. Don’t you know there are houses to be bought? TV streaming services will be the downfall of this generation. And they know because they watched a documentary about it on Netflix while continuously ringing the BBC to vote off Blobby from Strictly.

Our advice for buying a property:

While you might worry about your Gogglebox costs. There are better resolutions to saving cash (and far less judgemental in tone) for buying your property. We advise tuning out the naysayers and scare-mongers in order to make positive steps towards affording your new home. While we are passionate about helping you get onto the property ladder. We know how stressful it can be and how the market has affected us all. The 2008 housing crisis and predatory lending practices have spooked many of us, and we all need to heed knowledgable advice first and foremost. Speak with a financial adviser and local lenders to understand your situation and find the best deals for you. Without feeling ground down by unhelpful judgements.

Contact us:

alex@daviesdavies.co.uk – Lettings Director (contact for lettings and property management)

mark@daviesdavies.co.uk – Sales Director (contact for sales, new homes and chartered surveying)

Davies & Davies Estate Agents, 85 Stroud Green Road, London, N4 3EG

Article & images by Barefaced Studios

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