Six ways young professionals can get ahead in the property market
The average price of homes bought by buyers between the ages of 20 and 30 was R1.2m, up almost 6% on the previous year.
You’re never too young to invest in property, says Bradd Bendall, BetterBond’s national head of sales. “For young professionals with a stable income, age really is just a number when it comes to getting ahead in the property game.”
Whether the plan is to invest in a rental property that will bring in additional income or to buy a starter home to secure a foothold in the property market, Bendall recommends six ways young buyers can confidently enter the property market.
According to BetterBond’s data for the 12 months ending January 2025, the average price of homes bought by buyers between the ages of 20 and 30 was R1.2m, up almost 6% on the previous year. This reflects Lightstone’s findings that buyers under the age of 35 are paying more for their homes than in 2018. Seven years ago, only 29% of these buyers were spending between R1m and R3m on a property. Now, this has increased to 36% of young buyers.
Buy with a friend or family member
Even for young buyers with a good income, being able to share a bond with a friend or family member will help lighten the financial load, says Bendall. “Paying half or a third of a bond can make investing in a property more accessible and appealing for a young professional.” However, he highlights the importance of setting up the appropriate agreements to ensure that everyone understands their financial responsibility. Each party on the bond agreement is responsible for the bond repayments, and if one person defaults, everyone is liable. “With more than one income, joint buyers also have increased purchasing power,” adds Bendall.
Keep below the threshold
The transfer duty threshold increased by 10% to R1.21m from 1 April, meaning that buyers who apply for bonds of less than this amount will save on additional transfer duty costs, says Bendall. According to BetterBond’s data for the 12 months ending January 2025, the average price of homes bought by buyers between the ages of 20 and 30 was R1.2m, up almost 6% on the previous year. “With the new threshold, these buyers will save R3 300 in transfer duties if they buy for less than R1.21m.”
Buy off-plan
Another way for young buyers to secure property without having to factor in transfer duty costs is by buying off-plan in a new development. This means buying a property while it is still being developed. Not only does this save on upfront costs, but the new property will also increase in value when construction is complete, says Bendall. “Many young professionals buy in new sectional title developments that offer lock-up-and-go convenience and minimal maintenance.”
House hacking
For those who want to spend a bit more on a larger property, it’s possible to rent some rooms or parts of the home to generate a secondary or passive income to help cover the bond. Known as “house hacking”, this is a good way to generate an income from your home while you are living in it, explains Bendall. A property with a garden flat or a section of the home that has its own entrance would be a good option for a house hack. “The objective is to generate rental income to cover as much of the bond as possible.” Once the bond is paid, you can move out and invest in a second property using the income generated by the first.
Fix and flip
Start your property mogul journey by buying a fixer-upper and selling it at a higher price to make a profit. Often, properties that need a bit of work sell at below asking price, says Bendall. “But if you do your research and buy in an area where there is a demand for the type of property you have, once renovated it can be resold at a considerable profit.” This form of investment would most likely appeal to Gen-Z buyers (younger than 28) who want financial flexibility and short-term returns, says Bendall.
Identify opportunities in areas sought after by families for schools, or in developments offering appealing lifestyle facilities that attract a particular segment of the market, he advises. “Urbanisation is a significant factor driving homeownership currently,” says Bendall. “Mixed-use developments, micro-apartments in city centres and sectional title properties close to transport or economic hubs are therefore evergreen investment options.”
Work with the experts
It is always advisable to work with a bond originator who will calculate how much you can afford, based on your unique financial circumstances. “Young professionals can also use BetterBond’s online calculators to work out what they can afford, how much they will spend on bond repayments and how much they need to save if they want to pay a deposit,” says Bendall. In some cases, banks may be open to lending above 100% of the property value, depending on the buyer’s risk profile. This could help cover additional costs such as transfer duties or legal fees, making homeownership more accessible for young professionals. However, this type of financing is risk-based, so it’s important to work with an expert to understand the implications.
Bendall recommends applying for a bond pre-approval to get an idea of the recommended price range based on income and financial obligations. “BetterBond doesn’t charge for a pre-approval. In addition, it can be completed online and at any time, which is ideal for those who don’t have the time to fill in multiple documents and submit them to various banks.” The pre-approval application will also speed up the bond application and increase the chances of bond approval.
Since BetterBond applies to more than one bank, home loan consultants can negotiate a better rate concession based on the buyer’s risk profile. “The current approval rate for clients who pre-approved with BetterBond first is 95% of all applications submitted to the banks on their behalf,” says Bendall. “This high approval rate motivates young buyers hoping to enter the property market as their professional careers gain momentum.”
Issued by: Lia Mundell
