BUSINESS INSIGHTS: The truth about property and wealth in South Africa

The South African

16-07-2025

You've heard the phrase, '90% of millionaires made their money through property.'
It's quoted everywhere; in webinars, at braais, it's printed on mugs and slapped into LinkedIn posts by someone trying to sell you a course.
But is it true?
Let's just say… it needs a bit of fact-checking, and a lot less blind faith.
The quote is often credited to Andrew Carnegie, a 19th-century industrialist who believed land ownership was the foundation of wealth. Back then, however, he wasn't wrong. If you owned land, you had power. You also probably had a horse and candlelight.
But we're in 2025, in South Africa, where things are a bit more complex and a lot more expensive.
Not really.
Actual data on high-net-worth individuals (people with R20 million-plus in assets) shows that property plays a role, yes, but it's not the leading source of wealth. Financial services, banking and investing – think the 'finance world'.
Property & construction: a solid contributor, especially for the long-term thinkers.
Basic materials: think mining, resources and energy.
So no, 90% of millionaires didn't make their fortunes through property, but many of them do own property now.
There's a difference.
Because it sounds good and because it's repeated often. And because owning property is still seen as the gold standard of financial success, especially in South Africa, where land and homeownership carry real emotional and cultural value.
Property is often where wealth ends up. Not always where it begins.
Most millionaires didn't start by buying a two-bedroom in Sea Point. They've built wealth in business, finance or industry, and then put it into property to preserve and grow it over time.
Yes, them.
The ones promising early retirement through flipping, short-term letting or some 'guaranteed' model they're selling in their course. Some of them make valid points because let's face it, when you get property right, it's brilliant.
But here's what they don't always mention: Property is a long game.
It takes capital, patience and a bit of risk.
It's usually the second or third asset class investors turn to, after they've already built a strong income base.
Absolutely. Property might not make 90% of millionaires, but it plays a massive role in keeping people wealthy.
Why? It holds value.
It generates income.
It beats inflation (when you buy well).
It creates a legacy, something you can pass down.
And it gives you control over an actual asset, not just numbers on a screen.
For many South Africans – especially first-time buyers or investors – it's still one of the most empowering financial decisions they'll ever make.
We're in property, so yes, we believe in it… But we also believe in clarity.
Let's stop quoting old-school stats and start understanding how real wealth is built.
If you're planning to invest in property, do so wisely. Not because someone told you '90% of millionaires did it,' but because you've done your homework, picked the right area and have a solid plan in place.
That's how wealth is built: Step by step, brick by brick.
What's your take on the '90% of millionaires' claim? Have you invested in property, or are you planning to? Share your thoughts in the comments section.
Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1
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