Seeff Property Group agents, along with data from Lightstone Property, say millennials (individuals born between 1977 and 1994) are immensely active in the South African property market, making up between 30% and 42% of all property purchases.
According to Lightstone, one of South Africa’s leading property information providers, another side of the coin is that millennials are also likely to spend three times more on their first-time home than the generation before them.
A conversation with Pfarelo Munyai, a first-time home buyer, revealed that not enough research is being done by potential home buyers on things such as maintenance, levies, rates, taxes and special levies.
It is advisable to do your additional research by asking your potential neighbours how much they are paying, to have a realistic estimation.
Additionally, Munyai mentioned how crucial it is to get a second opinion and “request for a different realtor if you feel like your current one does not have your best interests in mind”.
The millennials who have felt the pinch, often take to social media to air their grievances and share experiences.
A notable Tiktok video that made the rounds was by Dr Katlego Lekalakala who revealed how the successional increase in the repo rate, and subsequently the prime interest rate in the last two years, led to her forking out more and more money towards her home loan instalment each month, a rise from R8,000 to R17,000.
The common sentiment among those who responded to the Tiktok post is that they wish they had done more or thorough research before making the decision to purchase.
Some said they probably would not have proceeded to buy property or would have done things differently, like negotiate and customise the contract to fit their needs.
Qualifying does not mean affordability, being eligible for a home loan is only the tip of the iceberg. Not only should you factor in all the essential monthly costs, but you must also make provision for any unforeseen additional costs, as well as inflation in your budget to build a margin of safety and manage risks.
IOL