9 hours ago
Why young South Africans struggle to understand property investment
Many young people in South Africa are excluded from traditional lending due to low or irregular incomes, lack of credit history, or student debt.
Image: File: African News Agency (ANA)
Many young people do not understand the mechanics of buying or investing in property, or how to plan financially for long-term ownership.
Asked by Independent Media Property what could be done to put the country's young people in better stead,Tsekiso Machike, spokesperson to the Minister of Human Settlements (DHS) Thembi Simelane, said the country must enhance financial literacy and property education,"therefore, incorporate property and financial literacy into high school and tertiary curricula".
He said the country must also encourage entrepreneurship in real estate. 'Youth entrepreneurs in real estate are underrepresented but can unlock job creation and innovation in the sector.'
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Last week, Siviwe Gwarube, the Minister of Basic Education delivered the keynote address at the Inaugural Policy Dialogue on Entrepreneurship Education. The event was hosted in partnership with the European Union's Education for Employability Sector Budget Support Programme. It aims to address South Africa's youth unemployment crisis through an education that empowers learners to be job seekers and job creators.
In her address, Gwarube reflected on the growing urgency to equip South African learners not only with academic knowledge, but with the skills, mindset, and agency required to navigate a fast-changing and uncertain world. She will speak to the Department's broader Three-Streams Curriculum Model, the development of a national entrepreneurship education policy, and the strategic imperative to address South Africa's high youth unemployment through inclusive, innovative education pathways. This high-level dialogue aimed to ignite a cross-sector conversation on embedding entrepreneurship education into the basic education system.
According to the recent Lightstone data, the youth accounted for roughly 25% of total home applications in South Africa during the first half of 2025. This was a slight decline from the previous years which is attributable to economic pressures and strict lending criteria.
Machike said youth representation in South Africa's homeownership and property sectors is currently limited, adding that there is a noticeable shift towards investment-focused property purchases.
'Economic challenges remain a significant hurdle, but initiatives and advocacy efforts are emerging to support and empower young individuals in these sectors.'
The ministry, which facilitates the creation of sustainable human settlements and improved quality of household life, said there is also a need to improve access to financing - promote First Home Finance to be more accessible, better publicised, and easier to navigate for the youth since many youths are excluded from traditional lending due to low or irregular incomes, lack of credit history, or student debt.
Meanwhile, during the important period of heightened focus on the youth and youthfulness, and particularly as the growing trend of excessive spending, online gambling, and impulsive borrowing threatens to damage the financial futures of South Africa's youth, the National Credit Regulator (NCR) urged young consumers to exercise caution and financial responsibility.
With the increasing popularity of the 'soft life' culture, epitomised by a lifestyle of luxury, designer brands, and instant gratification, many young people find themselves living beyond their means, said Lynette de Beer, Interim Chief Executive Officer at the NCR. She further added that this lifestyle, often glamourised on social media, is pushing South African youth into taking on unnecessary debt to keep up appearances or fund risky behaviours like gambling, sport betting and even forex.
De Beer said impulsive debt almost always ends in long-term financial regret. She said what may seem like small loans or quick online bets can quickly spiral into a bad credit profile, reduce employment opportunities but also limit future credit access. For instance, securing a job that requires vehicle ownership becomes impossible with a bad credit score, she emphasised.
