By: Natasha Archary
The average age of first-time home owners keeps going up, according to Renier Kriek, Managing Director of Sentinel Homes.
Joining Gugulethu Mfuphi on Kaya Biz, Kriek says 10-years ago the average age of first-time home buyers were within the 20 to 30 years age bracket.
This has shifted over the years, and now, the majority of first-time property owners are between the ages of 30 to 40 years old.
Kriek says more than 50% of properties that are purchased are by first-time buyers, and this is a clear indication that several things are changing in the property market.
There has been an uptick in single buyers, and this explains part of the phenomenon. Ten years ago there were more people in their 20s to 30s who were getting married, and starting families, and naturally this meant, pooling together finances to make that first home buy.
But now, more people are choosing to remain single, or are not marrying young, and so, it’s no longer financially feasible to make a home purchase in their 20s to 30s anymore.
Those who are still single between the ages of 30 to 40, may have put off buying a home until they were married, but with that not being the case, may have eventually decided to go ahead and buy a home alone.
“Because of affordability, first-time home buyers are getting older.
Over the last 70 years, asset values have risen significantly faster than wage growth, and this tendency is expected to continue. Simply put homes are getting less affordable.
South Africa’s youth finds itself in a precarious state. Millions are without jobs, while others work in places where they get below the minimum wage. Even those who are employed, find themselves in uncertainty as food and fuel prices surge.”
Renier Kriek, Managing Director of Sentinel Homes
Listen to the conversation on Kaya Biz:
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