Why you should buy property in your 20s: expert

 ·27 Apr 2023

Young professionals in their 20s should consider investing in property as early as possible, as it provides a sense of security and allows for long-term financial benefits.

This is according to the CEO of Harcourts South Africa, Richard Gray, who said now is the perfect time for millennials to take advantage of the real estate market and secure their future.

“Buying property at a young age is one of the smartest decisions a person can make,” said Gray. He added that millennials who invest in property at a young age have the opportunity to build wealth through property appreciation and rental income.

CEO of Harcourts South Africa, Richard Gray

Despite experts’ concerns surrounding the property market – such as South Africa being on the verge of a technical recession and the South African Reserve Bank (SARB)’s hawkish hike in March 2023 – the conditions still lean toward a buyer’s market.

According to the CEO of Jawitz Properties, Herschel Jawitz, property prices are expected to increase this year by only 2.75% to 3.5%, which means that in real terms, after inflation, property prices are declining by a similar amount.

“As long as inflation remains high amid low economic growth, real property price growth will remain marginal, and for buyers who have the means to buy, the current market is offering good value buying opportunities,” he said.

The Chairman of Seeff Property Group, Samuel Seeff, agreed: “The rate is still below the historical average of the last 20-30 years, and we are still seeing a strong, stable property market.”

“The impact of the higher interest rate is also somewhat mitigated by the continued favourable bank lending climate, which is still the best in over a decade. The increased transfer duty exemption threshold to R1.1 million is another positive for cash-strapped buyers,” he added.

In addition to financial benefits, Gray also emphasised the personal benefits of owning a property.

“It’s not just about the money. It’s also about having a place to call your own and creating a home for yourself. Homeownership provides a sense of pride and accomplishment that cannot be replicated,” he said.

However, Gray added that it’s important for young prospective buyers to consider their lifestyle and financial goals before making a decision.

“It’s important to think about what you want in a home and what you can realistically afford. You should also factor in the costs of maintenance, insurance, and property taxes when considering a purchase.”

Gray also recommends that millennials work with a reputable real estate agent who can guide them through the process and help them make informed decisions.

“A good agent can provide valuable insights into the local market, help negotiate the best deal, and ensure a smooth transaction,” he said.

“Owning a property is a key to financial independence and stability,” he said. “It’s never too early to start building your future.”

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