Living with parents – The pros and cons
Due to high rents, lack of jobs and being priced out of the
property market there is an increasing number of young adults moving back in
with parents. Whether it’s to save for a deposit, due to unemployment or unable
to afford high rent in comparison with wages, the number of 20s-30s moving back
home is on the up.
However there can be some advantages to this, usually low
rent, sometimes includes meals and bills and the opportunity to save. If you
get on well with your family then this is always a bonus. Although there are
some people who consider this to be a horror story, not having their independence,
family arguments and tensions and feeling guilty for coming home at early hours
of the morning. This is a situation probably the majority of young adults today
want to avoid but in a large amount of cases it is un-avoidable for a number of
reasons.
With house prices increasing it seems first time buyers are
becoming priced out of the market. Due to low wages in correlation with
property prices it is difficult for first time buyers to initially stump up the
money for a deposit and then qualify for the affordability of a mortgage.
The bank of mum and dad is increasingly known as donating
deposits for their children’s first step on the property ladder. And in many
situations with house prices increasing largely since the family home was
purchased parents can often be sitting on a nice amount of equity in their own
home.
There are signs of things improving such as the Help to Buy
scheme to assist people being able to get onto and move up the property ladder
without the need for a large deposit.
Have you been in a similar situation? What was your
experience? We look forward to hearing your opinions.
