With the right approach, purchasing a property before the age of 30 is achievable and, in many cases, a sound financial decision.
For many first-time buyers, the question is not whether to invest, but how to enter the market earlier, practically and sustainably, says Etchells & Young Property Brokers.
South Africans are currently buying their first homes later in life, as economic pressures and shifting lifestyle priorities reshape the path to property ownership.
The share of buyers aged 35 to 60 has climbed from around 50% to 70%, according to BetterBond data. The average first-time buyer is now 37 years old, up from 33 just a few years ago.
“For many, this decision is being delayed because of affordability challenges,” explained Stephan Potgieter, CEO of BetterHome Group Mortgage Origination and BetterBond, last month.
The shift to later homeownership is not unique to South Africa, noted Potgieter.
Property data show that buyers are entering the property market later in many developed and developing countries worldwide. Last year, the average homebuyer age in the United States was 40. Five years ago, the average American age was much lower, at 33.
The high interest rates and inflated living costs have definitely contributed to the older age of first-time buyers.
However, Etchells & Young Property Brokers says there are a few practical considerations that can make this process more accessible.
Start with affordability
Before viewing properties, the company says it is important to understand what one can realistically afford. It says this includes the monthly bond repayment, as well as transfer costs, rates, levies, and general living expenses.
“Many online platforms, like ooba homeloans, can help you estimate the bond amount you may qualify for, along with expected monthly repayments. A clear view of your budget provides a practical starting point for your property search.”
Get pre-approved early
A bond pre-approval provides clarity on your price range and positions an aspirant property buyer as a serious buyer when making an offer, says the property brokers.
It adds that it also helps keep one’s search focused on properties that are realistically within their budget. “Pre-approval services are offered by financial institutions and bond originators, allowing you to assess your position before entering the market.”
Build a strong credit profile
One’s credit record plays a key role in both bond approval and the interest rate offered by the bank. The real estate agency says consistent, on-time payments and responsible use of credit can strengthen one’s application and improve their chances of securing favourable terms.
Plan for upfront costs
In addition to the purchase price, the broker says buyers need to account for expenses such as transfer duties (where applicable), attorney fees, and moving costs. It says that while 100% bonds are available, having a deposit can improve overall lending terms.
Being strategic with the first purchase
Your first property should be viewed as a step into the market, rather than a long-term outcome, says Etchells & Young Property Brokers. It says focusing on areas with consistent demand like Randburg or Sandton, sound fundamentals, and growth potential allows one to build equity and position themselves for future opportunities.
In March, REMAX Southern Africa said understanding how lenders assess affordability is one of the most important steps buyers can take before beginning their property search.
It said many aspiring homeowners wonder whether they earn enough to qualify for a home loan.
Before setting their sights on a dream home, the real estate agency said buyers need to consider a range of factors that banks use to determine whether a loan application will be approved. It says these include take-home income, credit score, employment stability and the size of the deposit that can be provided upfront.
Running an affordability check or securing pre-approval through a bond originator can help prospective buyers understand the price range they should realistically consider, it added.
According to Adrian Goslett, CEO and Regional Director of REMAX Southern Africa, gaining clarity on affordability early in the homebuying journey can save buyers time and help them make more informed decisions.
“Buying property is one of the most significant financial commitments many people will make in their lifetime. By understanding how lenders determine affordability and by getting pre-qualified before beginning their search, buyers can approach the process with confidence and focus on homes that are realistically within their budget.”
No universal minimum salary is required to qualify for a home loan
While there is no universal minimum salary required to qualify for a home loan, lenders typically determine the amount they are willing to offer based on income and existing financial obligations.
As a general guideline, homeowners should avoid spending more than roughly a third of their net monthly income on bond repayments to ensure the loan remains affordable in the long term.
For buyers with lower incomes, government initiatives can also help bridge the gap. The Finance Linked Individual Subsidy Programme (FLISP) assists qualifying first-time buyers earning between R3,501 and R22,000 per month with a once-off subsidy that can be used toward the purchase of a home.
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