Wednesday, October 25, 2017

LIVING WITH PARENTS: A GUIDE TO FLYING THE NEST

A SHOCKING 25 percent of 20 – 34 year olds in the UK are still living at home with their parents, according to the Office of National Statistics, with 60 percent of those being men. And the UK is not alone. The US Census Bureau shows that 22.9 million 18 – 34 year olds are living with their parents. 

For many young people, moving out and entering the world of credit can be a scary thought, but there are lots of ways you can build up your knowledge so that you’re ready to take the next step. 

Things you need to know about before moving out for good:  

What is credit? 

To put it simply, credit is borrowing money. Companies will offer you an amount of money and you have to agree to their terms and conditions, such as how much you will pay back and by when. Most banks offer credit cards, personal loans, mortgages and overdrafts. Whether you are looking to rent or buy, it’s important to do your research to find out which is the best option for you.

To buy or not to buy?

Buying your first home is probably one of the biggest decisions you will ever make so it’s important to weigh up the pros and cons before taking the plunge. 

Once you have paid off your mortgage then your home will be yours, rather than giving rent to a landlord, you will be paying toward real bricks and mortar and you have the freedom to sell or move at your discretion. If you invest time and money on improving your home while you live there you can increase its value – it’s a great way to invest while still enjoying your new and improved living space. You might even find that sometimes your monthly payments are cheaper when you buy rather than rent. 

However, you have to consider that getting a mortgage is a big obligation – you need to be sure you can afford it for the next 30 – 35 years. Renting could be a better option if you want to move out quickly or you are unsure about how to afford the additional fees. Also consider it is usually easier to leave a rented house quickly if your monthly repayments become unmanageable or, not to jinx it, if you split up with a partner. If you decide renting is the way to go, a short term loan could help you to cover estate agent fees, deposits and even a loo brush until you get on your feet. 

How do I start applying for credit? 

Once you have decided on the best option for you, make sure you have the following information to hand:
  • Proof of address for yourself and your employer – you’ll probably be asked to provide a recent bill or statement.
  • Bank account details 
  • Your employer’s name and address 
  • Information on your income and outgoings, including any payments you already make e.g. your phone bill. 
If, whilst you are saving up to move out, you have to live at home with your parents again to recoup some costs, here is a guide on how to survive.

Moving Back Home: A Survival Guide

Moving Back Home: A Survival Guide, courtesy of Moneyguru.com

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