Article by <\/span><\/span>Samma Keetsin, Director of Sena Development Company<\/span>

Research on first-time homebuyers shows that consumers purchasing their first home or condominium typically fall within the age range of 25-35 years. This includes young graduates who have just completed their bachelor's degree or higher and have started their first jobs, accumulating some savings from their employment. They tend to buy their first residence at a price that is not excessively high, generally in the lower-middle price range.<\/span><\/span><\/p>

Owning a home is everyone’s dream. However, for recent graduates and those starting their first jobs, achieving housing affordability is not easy, especially for those from families with limited economic means.<\/span><\/span><\/p>

            These first-jobbers often find that their initial opportunity to have a residence outside of their parents' home is to rent dormitories, houses, or apartments. They may have to wait many years before they can save enough money for a down payment or to afford monthly mortgage payments when applying for a home loan from financial institutions.<\/span><\/span><\/p>

Therefore, first-jobbers need to cultivate the discipline to save a portion of their monthly income and to increase their savings rate beyond the rate of their expenses. They should aim to keep their expenses as low as possible or stable while their income increases with their work experience. Typically, companies consider annual salary adjustments based on business performance, employee evaluations, and inflation rates. First-jobbers usually receive annual salary reviews, and if they maintain discipline in saving from their increasing income, their chances of owning a home improve. They can accumulate a larger sum for a down payment and manage mortgage payments for a home that is suitable for their living needs and future family.<\/span><\/span><\/p>

Most financial institutions will lend to those wishing to borrow money for home purchases by calculating their ability to make monthly payments based on a ratio known as the <\/span><\/span>Debt Service Coverage Ratio (DSCR), which is the ratio of the borrower’s monthly income to their monthly debt obligations. Financial institutions typically set a minimum DSCR of 3 times.<\/span><\/span><\/p>

A report from the <\/span><\/span>World Economic Forum indicates that younger generations have less opportunity than previous generations at the same age to own a home, due to rising housing prices, stricter urban planning, more stringent construction regulations, and changing lifestyles.<\/span><\/span><\/p>

Thus, in addition to encouraging first-jobbers to develop saving discipline, the government should have a mission to support young workers in becoming homeowners for a prosperous society. Homeownership is a fundamental desire for people in the country, a key component in building sustainable families, and reducing various social issues.<\/span><\/span><\/p>

The government should strive to create opportunities for these individuals to own homes more easily by implementing appropriate measures, especially during periods of high inflation when housing prices rise faster than incomes. This could include considering tax credits (not just deductions for home loan interest), providing matching funds for disciplined savers (similar to social security contributions), or encouraging financial institutions to offer home loans at lower interest rates than usual.<\/span><\/span><\/strong><\/p>