Does home improvement make sense for Millennials?
As the average age of first-time buyers rises into the 30s, younger property owners must weigh costs and benefits of major projects
Millennials – that’s the generation who were in their teens when the new century started – are fast growing up. Now in their early to mid-thirties, they’ve discovered the joys of responsibility – partners, children, pensions, and, most expensively, creating a home for that family to live in.
When the millennials’ parents were tiny tots in the 1960s, the average age of a first-time buyer was 23. Now it’s knocking on 35, although many may remain in generation rent for all their lives.
One of the biggest expenses – other than the mortgage and council tax – that home buyers face is renovating their homes. Your thirties is peak time for this.
And with around 800,000 turning 30 this year, that means big business for kitchen, bedroom and bathroom companies – not surprising as typical second-hand homes probably last had a makeover twenty or thirty years ago.
A new survey from credit card provider Amex suggests more than a quarter of thirty somethings want to redo their homes, expecting to spend £33,359 on average. By this age, many get fed up with handme-down and charity shop furnishings so they are likely to spend a further £10,000 or so on new household items.
The major home improvement – extension, kitchen, bathroom and bedroom – is a big financial drain at any age. But it can be toughest in your thirties when many people face big childcare costs, the end of regular earnings increases, and pressure to pay more into pension plans. There is no such thing as the average cost of a new kitchen – often the first major improvement. You could spend from £2,000 to £50,000 depending on the size and quality.
Whatever your budget, you’ll need to consider how long you intend to stay in the property and whether your spending is in line with the street you live in.
It’s pointless spending £50,000 if local homes change hands for £100,000 – but may be worthwhile if you live in a million-pound plus area. It’s different if you’re happy to stay put for decades – then it’s less about the finances and more about creating the home you want to grow old in.