Homeownership is often seen as a crucial step towards financial security, but the age of first-time homebuyers is ticking upwards in South Africa amidst growing cost pressures. <\/p>\n\n\n\n
Renier Kriek, MD of Sentinel Homes, a non-bank home loan provider, said that asset prices have grown far higher than wage increases over the last 70 years, and this trend is set to continue, making homes less affordable. <\/p>\n\n\n\n
The average age of home buyers has also increased from around 30 to 32 years to around 38 to 40 years due to this affordability problem. <\/strong><\/p>\n\n\n\n \u201cYou must get in earlier to buck this trend. If you wait until the time you can afford your dream home, you may never be able to achieve that goal,” he said.<\/p>\n\n\n\n Buy now <\/strong><\/p>\n\n\n\n He noted that interest rates are likely to be cut as inflation has started to tick downward. However, he noted that very few buyers act until the first-rate cut, which is usually when the market responds and changes rapidly. <\/p>\n\n\n\n \u201cIf you want to time the market you have to buy now,” he said. <\/p>\n\n\n\n He added that first-time buyers who can afford a real estate asset at current interest rates will likely survive through the cycle and are unlikely to purchase a home that they can’t afford. <\/p>\n\n\n\n He also said that prospective buyers should use a bond originator to get a prequalification on a home loan. <\/p>\n\n\n\n \u201cIt shows that you are a serious purchaser, which makes everyone so much more willing and able to help.\u201d<\/p>\n\n\n\n He added that owning real estate, whether it is your own home or an investment, has financial responsibilities and tax implications. But buyers have to make sacrifices to enter the property market if they want to avoid living paycheck-to-paycheck. <\/p>\n\n\n\n He gave the following advice for those looking for a residential investment in the correct area and market: <\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n\n
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