Six ways young professionals can get ahead in the property market
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
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Maverick
a day ago
- Daily Maverick
New rules mandate energy-efficient motors — a win for SA's strained power grid
As of June 2025, South Africa has activated mandatory regulations that affect a R3-billion industry and will result in annual energy savings of 840 gigawatt hours — enough to power a city the size of Polokwane or approximately 140,000 households for a year. Electric motors might not sound exciting — but they're everywhere. They power conveyor belts in factories, water pumps on farms, fans in cooling systems, and crushers in mines. And as of June 2025, every new motor sold in South Africa will have to meet higher energy efficiency standards. That's because South Africa has officially implemented its Minimum Energy Performance Standards (Meps) for electric motors, bringing the country in line with global standards. The change affects a R3-billion industry, with the goal of saving up to 10% of energy per low voltage motor — which is significant in a country where demand exceeds supply. The new rule requires that most three-phase, low-voltage electric motors sold in South Africa meet IE3 (International Efficiency) standards. Less efficient IE1 and IE2 motors will be phased out over time, as old ones reach their end of life. Regulated by the National Regulator for Compulsory Specifications, this shift applies to motors rated between 0.75 kW and 375 kW with two, four, six, or eight poles — the kind you'd find in factories, farms, and commercial buildings. According to the International Energy Agency, electric motors and motor systems are responsible for about 53% of the world's total electricity consumption. And standards like MEPs offer the potential to reduce the energy demand of motor systems by 20 to 30% with short payback periods. Fanie Steyn, Executive of the Electric Motor Division at WEG Africa, a leading motor manufacturer, said that about 250,000 IE1 motors were imported into South Africa each year, representing a R3-billion value chain. Currently, there's a 3:1 ratio of IE1 to IE3 motors entering the country. 'From now, that's all about to change,' said Steyn. Those motors now need to be replaced with IE3 models, which are typically 4 to 10% more efficient. This might not sound like much — but considering that all electric motors account for around 65% of industrial energy use, and industry accounts for about 60% of the country's total energy demand, these efficiency gains are not negligent. 'Electric motors are the prime mover for all industry — almost everything that moves is driven by an electric motor. 'If you go to where a cold drink is bottled, the pump that pumps it, the conveyor that moves the bottles, where bread is made, or where mielies are crushed to make flour — it's all powered by motors,' he said. 'Almost everything that moves is by a motor.' Efficiency standard So starting this year, the new rules will require that all new motors meet the IE3 efficiency standard, which means they use electricity more efficiently and last longer. While the rules don't force businesses to replace existing motors immediately, over time, as older motors wear out, they will be replaced with these more efficient models. Dr Theo Covary, the lead researcher of the cost benefit analysis undertaken to inform these new regulations, estimates that this change will save South Africa 474 gigawatt hours (GWh) of electricity in the first year alone — enough to power about 44,000 homes for a year. Over the next decade, the savings will add up to 5,763 GWh, roughly the annual electricity use of a major South African city. 'The new IE3 regulation is expected to reduce electricity demand by approximately 0.25% in year one, which is reducing electricity by 0.25% in one year, 'which may seem small and insignificant but is material given the high net economic benefit to the economy', said Covary. The total cumulative energy savings of 5,763 GWh after 10 years is equivalent to the electricity used by Nelson Mandela Bay in one year. This is because as more and more older, less efficient motors reach their end of life and get replaced by more efficient models, the savings increase. In addition to energy savings, this reduction would prevent about 5 million tons of CO₂ emissions. To put this in perspective, offsetting that amount of carbon would require planting spekboom — an indigenous South African plant known for its carbon sequestration ability — over an area of approximately 3,333 square kilometres, which is about twice the size of the Western Cape's Garden Route District. Energy efficiency adds up If you consider that Eskom generated about 200 terawatt-hours (TWh) of electricity in the financial year ending March 2024, the estimated 840 GWh saved (or 0.84 TWh) from this new standard represents 0.25% of the power the country uses in a year. ' It might not sound like much, but believe me — 0.25% is a lot, and it all adds up,' said Chris Yellend, an electrical engineer and energy analyst from Business EE Intelligence. 'It's good that South Africa is following suit and becoming more energy efficient.' He added that energy efficiency measures like this offer the best returns in terms of cost. 'Instead of spending billions on new generation infrastructure, the economy can invest in efficiency — it's a no-brainer. Improving energy efficiency is the most cost-effective way of 'building' new electricity supply. It's not as insignificant as it might seem.' Steyn echoed these sentiments, saying: 'What do you do if you don't have energy? You have to build more power stations, maybe solar or wind farms — but all those options are massive projects with huge capital outlay. And it takes time and long periods of investment and installations before you can do that. 'We have an energy crisis, so in the short term one of the quickest or easiest ways to overcome that is to increase efficiency of products.' Steyn added: 'South Africa has done a phenomenal job over the years with labelling programmes — for fridges, TVs, lights. But now, finally, we're targeting the big energy consumers: electric motors.' According to a 2022 cost-benefit analysis by Covary and economist Linton Reddy of DNA Economics — which informed the regulation — these seemingly small savings are actually substantial, especially given the poor performance of Eskom's generation fleet. Despite the modest efficiency improvements, the long operating hours of motors translate into significant overall savings. To put it into context, Yelland said: 'If you value electricity at around R2.00 per kilowatt-hour, that's a saving — or a reduction in revenue to Eskom — of about R1.68-billion.' Tax breaks and rebates for motor upgrades Companies that upgrade to the new IE3 motors can tap into financial incentives. Zadok Olinga, a former president of the Southern Africa Energy Efficiency Confederation and director of resource management consultancy Oelinga, said the new minimum standards aligned with South Africa's broader push for energy efficiency — and opened the door to claiming Section 12L tax deductions and Eskom rebates. Under Section 12L, businesses can claim 95 cents per kilowatt-hour of verified energy saved as a tax deduction. Eskom also offers a 41c/kWh rebate for projects that cut electricity use — including motor upgrades — as long as minimum savings and demand reduction targets are met. Phase in Manufacturers and Original Equipment Manufacturers can still sell off their existing IE1 and IE2 stock until May 2026. End-users — such as factories or farms — aren't required to immediately replace older motors, but must buy energy-efficient ones when they do. 'Motors are built to last around 20 years,' said Van Niekerk from WEG.'But in reality, many reach end-of-life within seven to 10 years, especially in demanding environments.' For businesses that run motors 24/7, the higher upfront cost of an IE3 motor is often recovered in a matter of months through lower electricity bills. For others — say, a bakery or a workshop that runs motors eight hours a day — the payback period might be two to three years. DM
IOL News
a day ago
- IOL News
Volkswagen still most popular brand for young South Africans, but Suzuki catching up
Polo stands for Popular, among buyers under 35. Image: Supplied For the past 10 years, Volkswagen has been the most popular brand for South Africa's new and used vehicle buyers aged under the age of 35. According to Lightstone, financing data shows that the German brand has consistently remained the top choice for under 35s over the last decade, but below that, the rankings have shifted. Around 2020, Toyota moved from third to second spot on the leaderboard. Most popular car brands among South Africans under 35. Image: Lightstone Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. 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 Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. 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. Next Stay Close ✕ Around this time Suzuki entered the top 10 for the first time and by 2024 it had taken third spot from Ford, which was second in 2015. The Blue Oval's discontinuation of smaller cars like the Fiesta, Figo and EcoSport are likely behind this, although the brand's Ranger bakkie remains immensely popular. Chery and Haval have also entered the top 10 in recent years, ranking eighth and ninth respectively in 2025, behind Hyundai, BMW and Nissan. BMW fell from fourth to sixth place between 2015 and 2025, while Chevrolet, fifth in 2015, fell rapidly off the list following the brand's discontinuation in 2017. Kia and Mazda have also fallen out of the top 10 in the past decade. The study did not show any specific model preferences among the brands, but given that the Volkswagen Polo Vivo has consistently been South Africa's most popular new passenger car model during this time period, it is likely favoured among the youth too. As for vehicle types, SUVs and crossover-type vehicles overtook hatchbacks as the most popular body style in 2024. These two formats account for 80% of sales to buyers under 35, with double cabs emerging in third, albeit with a share of less than 10%. Premium brands remain popular Interestingly, the Lightstone data also shows that since 2015 there has been a gradual increase in the average price point at which younger buyers were prepared to finance a vehicle, with this number rising from R200,000 to R321,500. This outpaces the inflation rate by just over R5,000. ALSO READ: All you need to know about May 2025's vehicle sales, including the 50 top sellers Premium vehicle brands also remain popular, albeit to a lesser extent, as Lightstone's automotive data analyst Andrew Hibbert explains. There is still a demand for premium brands amongst the younger consumers as both Audi and BMW have retained spots inside the Top 10 over the past decade, although they have shifted slightly from where they were in 2015,' Hibbert said. The percentage of female finance applicants has increased over the last decade. Image: Lightstone The Lightstone data analysis also showed some positive momentum on the gender front. In 2015, just 35% of finance applicants below the age of 35 were women, but this has gradually grown to 40% over the past 10 years. IOL
TimesLIVE
3 days ago
- TimesLIVE
Cape Town labour court reinstates driver sacked for negligence at African Bank
A driver fired for negligence after leaving company equipment in a vehicle with a leaking roof has won a labour court battle to be reinstated in his job with back pay at African Bank. The bank fired Alistair Steenkamp — who was initially employed as a customer relations consultant — in 2021 after charging him with negligence and the use of a company vehicle for private purposes. 'During the period October 25 to 26 2019 you allegedly acted in a negligent manner when you left the company [audio] speakers, used for marketing, overnight in the vehicle when it was raining while you were aware of the leaking roof. The speakers were damaged due to your negligence,' read the charges. 'On November 28 2019 you allegedly acted in a negligent manner by not keeping the company laptop safe while it was in your possession and you lost the laptop due to your negligence. On November 27 2020 you allegedly left the company cellphone in an unlocked vehicle without taking proper care, the cellphone was stolen, resulting in a loss of R3,899. 'During the period January to December 2019 it is alleged that you parked the company bus at times at the residence of a relative without overnight authority. This is in breach of the bank's rules and policy.' Steenkamp, who was working as a driver when he was fired, pleaded guilty to the first charge and was found guilty on it by the chairperson of a disciplinary hearing. He had been working for the bank since 2018.
