
From wedding bells to doorbells
The growing momentum of a global homeownership trend dubbed 'houses before spouses' has seen more young homebuyers choosing to purchase a home prior to getting married or buying jointly with a spouse or partner.
This same trend has been mirrored in South Africa where, according to ooba Home Loans, the number of property purchases made with a spouse has dropped from 34% to 27% over the past decade. At the same time, the share of first-time homebuyers without dependents has increased to 64%.
While some buyers still opt for joint purchases, many are turning to an alternative co-ownership model as Grant Smee, CEO of Only Realty Property Group explains: 'It's becoming increasingly apparent that, to navigate the financial challenges of homeownership, many Gen Z and millennial buyers are choosing to co-own property with friends or family, rather than relying on the financial security of a spouse.'
Smee adds that first-time buyers, who are opting to purchase properties alone, are also getting older – a trend driven largely by economic uncertainty, high unemployment rates and financial instability.
When it comes to 'houses before spouses' in the global context, the US leads the charge with single women owning approximately 2.72 million more homes than single men (New York Post). In the UK, solo households now make up a third of all households, according to the Urban Institute. Similarly, in Australia, the trend is gaining traction among younger generations.
Houses Before Spouses Still Trending Locally – Especially in Gauteng & Amongst Women
Smee notes that, for many, owning a home remains one of life's most significant achievements: 'For younger buyers, homeownership is still seen as a major aspiration – particularly in a challenging economic environment where saving for a deposit, securing a home loan, and ultimately purchasing a property are far from easy. That's why, more often than not, it takes precedence over other traditional life milestones.'
Data presented by FNB indicates that buyers earning between R3,500 and R29,600 per month – referred to as the 'affordable housing segment' – are increasingly purchase homes collectively to manage high interest rates and rising costs. 'This segment saw 47% of home loans issued in Gauteng over the past four years, 18% issued in the Western Cape (despite having the highest property prices in the country overall), and 12% issued in KwaZulu Natal – as per Standard Bank's most recent data.'
Women are in strong support of the 'houses before spouses' trend, with Lightstone data in July '24 reflecting that women own nearly 60% of South Africa's residential housing stock. 'Female first-time buyers now outnumber their male counterparts, with the majority being single or divorced.'
Tips for Navigating the Joint Ownership Journey
As the trend continues to grow in popularity, Smee believes that more millennials and Gen Zs – in particular – will choose to purchase jointly.
'Housing affordability remains a challenge and this is where joint homeownership comes in. It also helps to minimise and spread risk across the parties entering the agreement, however, buyers must understand the legal, financial and practical implications.'
He unpacks these as follows:
Managing Financial Risks
A major risk of joint ownership is that if one owner stops contributing financially, the remaining owners must cover their share to avoid legal and financial consequences.
'This is why a well-drafted co-ownership agreement is essential,' says Smee. 'It should outline how costs are divided and establish solutions for non-payment, such as a buyout clause or forced sale options.'
What Happens In the Case of Death
In the event of a co-owner's death, their share does not automatically transfer to the surviving owners.
'The share becomes part of the deceased's estate and is distributed according to their will or intestate succession laws,' explains Smee. 'Meanwhile, the remaining bondholders remain jointly liable for loan repayments until the estate is settled and ownership is transferred.'
Smee advises co-owners to maintain up-to-date wills to avoid legal complications.
Exiting the Agreement
If disputes arise over selling the property – such as one owner wanting to sell while others do not – an owner can apply to the court for an order to force a sale, known as actio communi dividundo.
'A co-owner could also attempt to sell their share without the consent of the others, which may introduce an unknown third party into the arrangement,' Smee cautions. 'A buyout agreement can help prevent such conflicts by ensuring that remaining owners have the first option to purchase the departing party's share.'
If all owners agree to sell, the property is sold, and proceeds are divided according to ownership percentages.
The Importance of a Co-Ownership Agreement
A formal co-ownership agreement should outline:
Ownership rights and obligations
Procedures for selling or transferring shares
Recourse for non-payment
Looking ahead, Smee believes that Gen Zs in particular will change the way in which property is viewed, purchased and ultimately, used. 'While millennials have been largely responsible for driving this trend, I suspect that Gen Zs will transform the homeownership landscape in years to come. Whether it's through joint or single homeownership, we do anticipate it to be an exciting time.'
Issued by Jess Gois
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Daily Maverick
2 days ago
- Daily Maverick
E-hailing drivers demand action over frozen licence approvals while impoundment fees soar
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IOL News
2 days ago
- IOL News
Petrol vs Diesel vs Hybrid vs Electric: These are the ins and outs of each vehicle type
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Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading The Kia Seltos is one of the few affordable passenger cars still available with a diesel engine. Image: Supplied For instance, a Kia Seltos 1.5 CRDI LX turbodiesel costs R29,000 more than its normally petrol equivalent, which has the same power output. 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Operating a 48-volt electrical system, rather than the 12-volt set-up typically found in regular ICE cars, mild-hybrids replace the starter motor and alternator with an electric motor and small battery. Although the e-motor provides a small performance boost, the fuel economy gains tend to be negligible at best as these systems more often than not do not propel the car on electric power alone. They do however make a small difference by using recuperated energy to power some of the car's electrical components, and even the air conditioning in some cases, easing the strain on the engine. Yet regular 'self-charging' hybrid systems like the one found in South Africa's best-selling HEV, the Toyota Corolla Cross, often hit a sweet spot for consumers. The Corolla Cross is Mzansi's most popular hybrid. Image: Supplied Like diesel engines, they tend to cost more than their petrol counterparts, for the benefit of better fuel consumption, but it's important to understand the scenarios in which each engine type operates at its most efficient. Hybrids typically pair a petrol engine with one or more electric motors, which power the car together or alone depending on the circumstances. For instance, the Corolla Cross 1.8 HEV has a 53kW electric motor that can power the vehicle alone at lower speeds, in lower gears, thus taking the strain off of the petrol motor when it's at its least efficient. Toyota claims a combined fuel consumption figure of 4.3 l/100km for the hybrid, in ideal test laboratory conditions, versus 6.8 for the regular 1.8-litre petrol model, which is R38,200 cheaper in XS trim. But that doesn't tell the full story. In our month-long road test of the Corolla Cross HEV, our test unit consumed a shade over 6.0 litres per 100km in town driving scenarios and 5.6 l/100km on a 1200km highway trip. Notice the small gap between those figures? Normally an SUV of this size would consume well over 9.0 l/100km in town. But the highway figure, while still impressive, is not significantly better than what a conventional ICE engine would achieve. That's because the lack of braking at constant highway speeds results in limited energy recuperation, meaning the e-motor can't do as much of the work as it would in town. The bottom line is that hybrid vehicles will hit the sweetest spot for those who do most of their driving in urban environments, while a diesel engine would still be better suited to those doing a great deal of longer-distance driving. Sadly, the Corolla Cross is not offered with a diesel. Plug-in hybrids: having your cake and eating it? The city driving advantage of a hybrid is amplified further when it comes to the plug-in type, otherwise known as a PHEV. These work much like the aforementioned regular hybrids, but have much bigger batteries that typically allow these vehicles to cover anything from 50km to 100km on electric power alone. In fact Volvo's upcoming Ultra PHEV models promise electric coverage of up to 200km. Volvo is a big player in the PHEV space. Image: Supplied Keep in mind that the 'claimed' range figures will differ greatly, depending on the mixture of urban and freeway driving, and of course, your driving style. But theoretically, and provided that you charge your PHEV on a regular basis, you could do your daily commuting on electric power alone, while the petrol engine waits in the wings for that odd long-distance trip to the coast. It is a bit like having your cake and eating it, depending on what your needs are. 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IOL News
2 days ago
- IOL News
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Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Younger South Africans, particularly Millennials and Gen Z, are leading this charge. A 2023 survey found that 55% of these generations have sought therapy, with 40% actively pursuing it in 2024. Compared to Baby Boomers, only 11% have done so since the pandemic began. 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