First time buyers advised to buy now
Delaying the purchase of your first home could cost you more than £270,000, independent research has revealed.
According to the Model Works, the average first time buyer currently stands to lose in excess of £270,000 over the course of their life by waiting to get on the property ladder.
The average age of a first time buyer is currently 37.
The independent researcher considered the returns from investing the savings made on buying a home at the age of 24 (the average age of a first time buyer in 1960) as well as reducing the money spent on rent to calculate this sizeable deficit. Tax breaks and compound interest over a longer period of time were also contributing factors to its findings.
Brian Hall is the Founder of The Model Works:
“That first time buyers are getting older is a well established fact. But we believe this is the first time that the full cost to those affected has been quantified and of course millions are affected.
“If current trends continue, the total cost of delayed homeownership and exclusion for life could cost the taxpayer tens of billions of pounds per annum and these costs will rise as the retired populated is expected to double by 2050.”
Content correct at time of publication