You Can Buy a House in your Twenties


While most of our parents bought their first homes when they were in their twenties, today it has become difficult for young people to buy homes. Old Mutual’s Savings & Investment Monitor for July 2018 revealed that approximately one in two 18 to 34-year-olds live at home with parents. With the rising cost of living, especially in cities like Cape Town, property for rent is becoming unaffordable for most young people. However, instead of renting, with a little planning, you can still buy a house in your twenties.

Clear debt and save

You need to try and clear any debt you are carrying, such as student debt, credit card debt or a car loan, before you apply for a home loan, to decrease the chances of your home loan not being approved by the bank.

Although it’s possible to buy property without putting down a deposit in South Africa, you should up your savings as much as possible so that you have something to put down as a deposit when buying a home. The bigger the deposit you can put down, the higher your chance of getting approval for the home loan.

Get stability

While it’s difficult for young people today to stay for a long period at the same job, you need to try and keep the same job so that you’ll be able to show a solid work history. This will improve your chances of getting credit approval. So stop job hopping!

You should also check your credit report. You get a free report once a year – ensure that you use it. By checking your credit score you can make sure that there are no errors in your credit report and you can resolve any things that need to be resolved with the respective credit agencies, to ensure your credit report does not work against you.

Ask for assistance

If the money you have is not enough to qualify you for a home loan down payment, asking for money from your parents to increase the amount of your down payment can allow you to secure the loan. You can pay your parents back gradually.

Gerhard Kotzé, MD of the RealNet estate agency group, said: “It can really pay to get a start in the property market much sooner. Young people who start a first job do, of course, have to budget carefully to cover all their bills, but if they are paying rent for accommodation, they should seriously consider the benefits of buying a home instead”.

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