Recent research by the Institute for Public Policy Research shows that most young people are suffering self-esteem issues from their inability to enter the housing market, their decisions in life about work, love and family are all being affected.<\/p>\n
The fact is the many first time buyers are over 35 years old and over half of university graduates (53%) cannot afford to buy their own home.<\/p>\n
Vicki Wusche, author of \u2018Property for the Next Generation\u2019 believes we can change this by teaching children and young people about property \u2013property as an asset, as a business opportunity \u2013 rather than an emotional burden, which it is for so many.<\/p>\n
Vicki has 10 tips to help you teach your children about property, money and, maybe, even a new way of thinking, so that when they are ready to take that first step on the ladder, they can \u2013 without dipping into bank of Mum and Dad.<\/p>\n
1. We learn our values about money from our parents. \u201cMoney does not grow on trees\u201d or \u201cmoney is an incredible tool when used wisely\u201d \u2013 what are you teaching your children? These beliefs will influence every decision they make about money. We need to teach children that there is good debt and bad debt. Good debt puts money in your pocket. Bad debt costs you money.<\/p>\n
2. Does your house put money in your pocket? No. It is a liability and yet we are taught that owning your own home is an asset. In fact owning a property rented out to a tenant is an asset, but when you live in it then you have to pay the bills!<\/p>\n
Let your children know that they do not need to own the house they live in. In fact in some cases it makes sense to rent a property for a temporary period. Once you understand that your home is not an asset you can start to see that you can own property assets but they will be occupied by tenants.<\/p>\n
3. Start to think of property as a business opportunity as well as a place to live. Your children will face increasing house prices that come from normal supply and demand combined with the pressures of limited space on our island. This will need new thinking. What if they knew that property was a business opportunity and they were already buying property that they could afford (in another location) renting out to tenants and then using the income to live a life of their choosing.<\/p>\n
4. Don\u2019t force it. Talk freely about money with your children \u2013 let them know the facts, but don\u2019t pressurise the. They will make up their own minds. Explain why you are being financially successful and what are you doing. Let them know when you are struggling and explain to them what has changed. These are real lessons about money and our children need to understand.<\/p>\n
5. When you start to explore property investment as a business opportunity you must understand \u2018return on investment\u2019 as a way to compare one opportunity with another. Return on investment or ROI is an equation that helps you understand what you will get back in return for investing in a particular opportunity. This is an essential.<\/p>\n
6. Understand is the impact of inflation and house prices on your family\u2019s wealth. For example, if house prices are not increasing and inflation is between 2-4% then your home might actually be losing value in real terms. But if you invested in property and made 10-15% return then you\u2019d be borrowing money at 5% to make 15%. These are just examples, you must do your own maths.<\/p>\n
7. Always take responsibility for any investment you make. Never just hand money over to someone else. Always be responsible for your own due diligence, check the facts for yourself.<\/p>\n
Make all your decision in a non-emotional manner and do not be pressured in the room into signing any deals or commitments. <\/p>\n
8. Never sell a house – always consider it part of your portfolio. When you do have to move, maybe for work always explore whether you can rent your property for a profit.<\/p>\n
9. If you have cash resources or available equity start investing now. Property prices are cheap in relative terms. Interest rates will increase but that is why you need to find properties that will generate over 10% return on investment. These are more often than not outside London.<\/p>\n
If you have children under ten then they will not be eligible for a mortgage in their own name for at least eight more years. By that time the recession cycle will have moved on and with that property prices will start rising. If you buy property now (with your children\u2019s future in mind) you could either leverage (remortgage) or sell those properties in 8-10 years and use the profit from the capital to pay for a deposit.<\/p>\n
10.If you don\u2019t have money to invest now \u2013 start saving for the children and then buy smaller properties as soon as you can afford them. As soon as you accumulate \u00a330,-40,000 or release that level of equity then you can buy a rental property. While you can\u2019t buy it in your child\u2019s name because they are too young at the moment you can buy it with them in mind.<\/p>\n","protected":false},"excerpt":{"rendered":"
Recent research by the Institute for Public Policy Research shows that most young people are suffering self-esteem issues from their inability to enter the housing market, their decisions in life about work, love and family are all being affected. The fact is the many first time buyers are over 35 years old and over half […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[57,345,30],"tags":[],"class_list":["post-4673","post","type-post","status-publish","format-standard","hentry","category-mortgage-news","category-press-releases","category-housing-market"],"aioseo_notices":[],"_links":{"self":[{"href":"http:\/\/www.hip-consultant.co.uk\/blog\/wp-json\/wp\/v2\/posts\/4673","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.hip-consultant.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.hip-consultant.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.hip-consultant.co.uk\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.hip-consultant.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=4673"}],"version-history":[{"count":9,"href":"http:\/\/www.hip-consultant.co.uk\/blog\/wp-json\/wp\/v2\/posts\/4673\/revisions"}],"predecessor-version":[{"id":5355,"href":"http:\/\/www.hip-consultant.co.uk\/blog\/wp-json\/wp\/v2\/posts\/4673\/revisions\/5355"}],"wp:attachment":[{"href":"http:\/\/www.hip-consultant.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=4673"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.hip-consultant.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=4673"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.hip-consultant.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=4673"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}