INFOGRAPHIC: South African millennials invest in homes

In recent years, South African millennials have purchased homes in large numbers. According to statistics supplied by property group Lightstone, about 330 000 millennials bought homes in South Africa between 2015 and 2017 and 70 per cent of them were first-time homebuyers.

Millennials, or ‘Generation Y’, are between the ages of 22 and 37 and were born between 1981 and 1996. The global trend has seen millennials become a significant share of homebuyers. The National Association of Realtors statistics show that 34 per cent of homebuyers in the US in 2017 were millennials, with as much as 66 per cent of these being first-time homebuyers.

“For most people buying their first home can be a daunting prospect. It is often the single biggest investment they will ever make, and it means a long-term commitment. Buying property is an emotional decision for many, which can be filled with a lot of anxiety and excitement. While millennials may face a number of financial and other barriers entering the property market, statistics show that a fair number of our young people are buying homes,” said Nondumiso Ncapai, head customer strategy and engagement at Absa Home Loans.

Interestingly, Ncapai said, a fair share of the millennial demographic were repeat homebuyers with almost 100 000 of them being repeat homebuyers during the 2015 – 2017 period.

“Being a young homeowner can be both exciting and daunting, but if you save for a deposit, do your research about neighbourhoods, property types and prices, it can eventually be a very rewarding experience – one that could benefit your financial position and end up ensuring future stability for you and your family,” Ncapai said.

Check out the infographic below which shows a detailed report on millennials investing in homes as well as some tips for first-time homeowners:

Source: Lightstone Property Group/ Absa Home Loans