As it becomes much harder for a person aged 18-34 to buy a home, there are now more people than ever spending their money on travel, rather than saving towards a deposit.
In 2016, the average household income for first time buyers was £39,372, 12% higher than it had been in 2008. According to Contiki, based in Australia, the UK is not alone in terms of first time buyer struggles. The study by Contiki revealed that just over a third of people aged 18-21 are happy to borrow money to go travelling, while 39% of those aged 22-36 will happily borrow money to fund their travels.
In an interview with the Daily Mail, one resident of Sydney, Sarah Wehbe, aged 21, said that millennials are discovering that buying a home is less affordable than it was in the past. According to Wehbe, travelling is much more realistic for her than buying her own home.
A spokesperson for Contiki, Katrina Barry, said:
“Travel is a goal that young Australians put high on their priority list and the [report] reinforces that young people want to gather experiences, rather than material things.”
Although it is expected that around half of all students will acquire a degree, and that they will have higher levels of debt when they eventually enter employment. This will leave them worse off than their parents’ generation. Anyone who is considering buying property will be able to obtain advice from a CeMAP qualified mortgage adviser.
