Younger people setting their sights on buying property

Around the world, young working people are increasingly attracted to home ownership rather than renting - and in fact are often skipping the rental step altogether by staying on in their parent's homes until they have worked for a few years and saved up enough for a deposit on a home of their own.

According to Berry Everitt, MD of the Chas Everitt International Property Group, the strongest motivation for such buyers at the moment is obviously the very low mortgage interest rates being offered by the banks, which make it easier to qualify for bonds and owning a home at an earlier age, and of course also mean lower monthly bond repayments.

In fact, in many parts of South Africa right now, young people are finding that the monthly home loan repayments they would be required to make are lower than the rentals being charged for similar properties. What is more, rentals are rising and set to go higher. The latest figures from PayProp, for example, show that residential rentals rose by an average of 10,8% last year, and that a growing shortage of rental properties is likely to see further steady growth this year.

Then as an added attraction for young people, there is still a good possibility now of acquiring a property at a very competitive price and seeing its value increase substantially as the market speeds up. ABSA figures show, for example, that the average price of small homes rose only 4,3% in the year to end-September 2013, but that the rate of growth in this sector of the market was well up in the third quarter to almost 2%.

But whatever motivates them on owning a home, such buyers becoming an increasingly important component of the market and home sellers as well as developers and estate agents would do well to take into account their preferences.

Younger property buyers - typically in their late 20's or early 30's, are likely to be more concerned about security than home size, for example, and generally prefer low-maintenance homes with modern kitchens, bathrooms and all-purpose living/ entertainment areas that suit a busy lifestyle.

But this does not mean they will always opt for newly-built homes. They are generally also very aware of the value of a "good" address when it comes to owning a home, which opens the door to many homes in mature suburbs, provided they are well-maintained, well-secured and well-priced.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 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
    • 18 Jun 2018
      Sellers are often caught off-guard by the expenses incurred in the selling of a property. Just like there is no such thing as a free lunch, there is also no such thing as selling your property without incurring at least some costs.
    • 15 Jun 2018
      The second quarter of 2018 has proven to be the turning point for Midrand’s real estate market, especially the upper end which started to waver towards the end of a tumultuous 2017 with a notable drop in both sales and average selling prices.
    • 15 Jun 2018
      According to data recently released by FNB, the average age of a South African home buyer has increased from 38 to 44 this year. In an attempt to help first-time buyers enter the market sooner, Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, walks us through the steps of saving for your first home.
    • 15 Jun 2018
      Putting your house on the market can be a stressful process. There are so many decisions to make that will impact how quickly your house is sold and for how much you can sell it for. It’s a serious money game where you can’t afford to make the wrong decision.
    • 14 Jun 2018
      The word tourist describes someone who is visiting South Africa for a limited time and is probably not going to buy a property here – so why is the tourism industry so important to the real estate sector?
    • 14 Jun 2018
      Serengeti Estates has entrenched its status as one of Johannesburg’s most desirable addresses for a spectrum of homeowners with its launch of The Signature Residences, a new cluster village.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us