The cost of living, political uncertainty and fluctuating career prospects, have made making it important to make the right decisions as early as possible.
Many South Africans are feeling increasingly disconnected from the dream of owning their own property, but knowing how, when, and where to enter the market is more important than the cash in hand.
Renting offers flexibility, short-term manageability, and a lifestyle stop-gap that may be necessitated by modern factors. Yet research shows almost 90% of tenants in South Africa would rather own their properties.
The cost of living, political uncertainty at home and abroad, as well as fluctuating career prospects, have made making the right decisions as early as possible as important as ever.
No security without ownership
The most recent Ipsos study on home ownership perceptions showed that South Africans were more optimistic than those surveyed internationally, with only 38% of local tenants believing they would never be able to afford their own property, compared with 56% globally.
This still translated to an unfavourable perception among the youth, with 72% believing it was easier for previous generations to find a good home, citing higher property prices, high interest rates, and high taxes.
Crucially, 89% of tenants said it would be preferable to own their properties, with 74% believing it was difficult to attain true financial security without owning your own home.
“Renting pays for the right to occupy a property for a specific period, whereas a bond repayment also includes a reduction of your home loan balance, giving you the opportunity to build equity in your home,” Michael Coulter, Head of Product Economics at Standard Bank Home Services, told The Citizen.
Early steps, big rewards
Acknowledging that not everyone was at the point in their financial and personal journeys to want or need the commitment of ownership, he noted that the average age of first-time buyers had dropped from 41 in 2020 to 38 in 2025.
But aspirant homeowners are advised to look beyond the statistics and consider their own circumstances and financial ambitions.
“Potential buyers have this idea of a home that they want to have, but that dream home might only be 10 to 15 years down the road.
“If you buy what is suitable now, you build up equity so that when you buy your dream home the second time round, you have the equity to fund you into that second purchase,” said Coulter.
He urged buyers to understand the potential of an entry-level property, taking into account the state of the municipality, property price trends and how long they may need to live in that home.
“Starter houses tend to maintain value quite well because they are in a marketable section of the housing market.
“If you have the income stability now, you will be paid back in the long term by buying in the right area.
“With good property research, buying at times when the market is not buoyant is actually quite beneficial,” Coulter explained.
Looking beyond today
A common misconception is the need for a deposit, which Coulter stressed was not always a prerequisite.
“For first-time home buyers, a deposit is not always needed. It depends a lot on the property itself. A deposit does help, however, because it reduces the loan value. This means buyers can access lower monthly repayments or choose to pay their home off over a shorter period.”
Standard Bank has factored additional purchase costs such as transfer fees and bond registration into its offering, allowing up to 108% bond financing specifically for first-time home buyers.
Standard Bank also offers discounts on bond registration fees and built-in cushions for hidden home expenditures.
“Customers who apply to Standard Bank for a home loan will be automatically assessed to see if they qualify for an additional 20% Future Use registration amount to be used for acceptable home improvements. This additional amount does not attract registration costs,” stated Coulter.
Monthly rental expenditure may be fractionally less than a bond repayment, but transitioning from a reliable tenant into a future homeowner is an easier switch than perceptions suggest.
“Look beyond that monthly payment comparison. It doesn’t have to just be a dream of home ownership; it can be a practical step in securing financial stability.
“For someone who is financially ready and expects to remain in a location for an appropriate amount of time, it should go past the first month’s and first year’s cash flow,” Coulter urged.
Not deciding is effectively deciding
Once the initial hurdle is overcome, home ownership becomes a cascading contributor of financial flexibility.
“The more equity you build up in your own property, the more you can leverage it later on in life, whether it’s upgrading to your dream home, renovating, extending or even downgrading for retirement.
“It’s not just about having that roof over your head. Apart from anything else, you might have a legacy to pass on to your children or your family,” Coulter said.
Unforeseen and sometimes uncontrollable economic factors affect tenants and homeowners alike, but each makes a commitment accordingly.
“Even renting with its flexibility comes at a cost, and that cost causes a delay in entry into the property market.
“It also implies less time to build equity and benefit from the long-term advantages of home ownership.
“So even though you might not be ready to make a decision, that in itself is making a decision,” Coulter concluded.
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