select
|

The next generation homebuyer

The past few years have been an extremely interesting time that has irrevocably changed the real estate market as we know it, says Adrian Goslett, CEO of RE/MAX of Southern Africa.  

The housing crisis experienced at the end of 2008 changed the dynamic of the real estate environment and has impacted most in some way - however, not all of the effects have been negative.

Goslett says that as a result of the recession, this generation of homebuyers has become increasingly more knowledge about homeownership.  He notes that this is partly due to the fact that property ownership and access to finance requires more preparation and planning, along with the increased media coverage of real estate topics that homebuyers have been exposed to over the past six years. “Younger consumers believe that the recession has made them more knowledgeable about the property market than their parents were at their age. The increased amount of information regarding real estate and easier access to the information via the internet and property search portals has led to many consumers doing their homework more thoroughly before making one of the biggest investments of their lives,” says Goslett.

A large majority of consumers aged between 18 and 35 still believe that homeownership is a key indicator of success and are willing to do what it takes to be able to purchase their own home. Statistics suggest that 75% of consumers in this age group consider homeownership a fundamental indicator of success over taking an extravagant holiday or owning an expensive car.   “Although the stringent lending criteria of financial institutions have made purchasing a property more challenging now than it was before, compared to the property boom period, many potential first-time buyers are eager to do the necessary research and save the required deposits, even if this means a change of lifestyle,” says Goslett.  

While it is the Generation X population, which consists of adults between the ages of 31 and 45 who are generally well established in their careers, that is currently the most active and driving the real estate market, the Generation Y demographic, which consists of adults younger than 30, is a much larger generation and has already made their presence felt in the market. Statistically the population in South Africa shows that there were 18, 74 million births (Generation X) between 1965 and 1985, while approximately 28, 4 million consumers make up Generation Y.  

Goslett says that the larger generation will mean that the demand for property will steadily increase as Generation Y comes of age to purchase their first property. However, considering that the average age of a first-time buyer in South Africa is in the mid-thirties and the oldest Generation Y’s, born between 1985 and 2010 are now only 27, it could take some time before this generation reaches its full economic potential.

“The Great Depression shaped the lives of The Greatest Generation, while the oil crisis during the 1970s impacted the Baby Boomers. Generation X and Generation Y are now leading the real estate market after the largest modern day housing recession we have seen. It seems that every generation has faced certain economic circumstances that have changed their collective perspective in some way. Today’s generations believe that the risks, details and rewards of purchasing a property are integral to their planning for future financial success,” Goslett concludes.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 20 Jun 2018
      Buying or selling real estate isn’t as easy as it is portrayed sometimes, especially if there is a death of a party during the transaction which can make it awkward, tricky and inconvenient.
    • 20 Jun 2018
      With interest rates remaining at historic lows and banks continuing to compete for mortgage finance business, first-time buyers with funds at their disposal are currently well-placed to gain that initial foothold on the property ladder, particularly in the light of the slightly lower growth rates currently experienced in residential property values.
    • 20 Jun 2018
      The average size of bond granted in SA has grown 7,7% in the past 12 months to R934 000, according to BetterBond, the country’s biggest bond originator.
    • 19 Jun 2018
      In the current market, letting out a property can be a good option as rental demand remains strong, especially in the northern suburbs of Johannesburg. This is according to Chris Renecle, MD of Renprop. However he says that before homeowners let their property out, there are five key points they should make sure are covered before they market the property for rent and sign any lease agreements.
    • 19 Jun 2018
      The Capetonian dream is to live by the ocean with the iconic mountain making an appearance somewhere in the horizon. But, that dream comes with a hefty price tag that many simply cannot afford. But, should you venture some kilometres out of the city centre, entirely new realms of beachside bliss await you …
    • 19 Jun 2018
      Douw Steyn, one of the richest men in the country, recently allowed a rare glimpse into his Fourways Palazzo when it was featured on the SABC lifestyle programme Top Billing - and it is beyond your wildest dreams!
    • 18 Jun 2018
      Many home sellers are motivated to appoint estate agents because they know that the agency will carry the costs of advertising and marketing their property.
    • 18 Jun 2018
      When a property is sold when it has a tenant in occupation, the questions often raised are: “What happens to the tenant if the landlord sells the property?”, and what rights the tenant will have with regards to cancelling the lease or enforcing it, says Sunell Afrika, rentals manager for SAProperty.com.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK