The lifetime benefits of buying young

Whether you’re a home buyer or a property investor, there is exceptional value on offer now in almost every price bracket in SA.

“These opportunities are accessible because of the low interest rates,” said Berry Everitt, CEO of the Chas Everitt International property group.

“Price growth has been outpaced by salary growth for the past few years, which has helped to make homeownership more affordable for many working South Africans.”

“It is the low rates that have really tipped the scale and are driving the very high number of first-time buyers at the moment, as well as much higher than expected levels of sales activity among repeat buyers.”

He said the message is getting through to younger buyers that sooner is always better than later when buying real estate.

“Whatever the interest rate is, steadily rising home prices will always mean that you need a bigger home loan this year than you would have needed last year to buy the same property and a higher salary to qualify for that loan.

“This is evident from the fact that the average age of first-time buyers in SA has been dropping rapidly this year.

“More young people realise that paying off your first home during your 20s and 30s instead of in your 40s and 50s can make a huge difference to your financial future and that of your family.”

“The rapid uptake this year of technology that makes it possible to work from anywhere that has good cell phone and internet connectivity, also means that the first home you buy could now also be your ‘forever’ home.”

He said repeat buyers are finding good value in the R2.5-million to R5-m price bracket.

“Careful upgrade is likely to represent a good investment, especially if you have a decent deposit from the sale of your previous home.

“Despite the current downward pressure rentals, the prospects for buy-to-let purchases are also improving, with the demand for rental accommodation of all types set to grow over the next few years.”