Getting into the property market before you are 45

PUBLISHED 30 SEP 2019   


Buying a property is a key financial milestone in many people’s lives - and it’s ideal to reach it before your 45th birthday. 

Entering the property market while you’re still young not only makes applying for a bond easier - it also means that you’ll have more years of ownership to watch the value of your property grow. 

Buying your first home: timing is key

South Africans are following the global trend of delaying life decisions like marriage, the birth of their first child, and buying a home until well into their 20s or 30s. 

While this opens up a world of travel, career opportunities, and life experiences, when it comes to buying a property, it’s often better to start sooner - especially if you’re going to apply for a bond. 

First-time home buyers are torn between saving and investing their money so that they can put down a good deposit, and buying a property early enough to pay it off during their working lives.   

  • Since the minimum repayment period for most bonds is 20 years, banks start to get nervous when someone over the age of 45 applies for a large home loan. 
  • While someone 45 or under is likely to repay the bond before they retire, an applicant in their late 40s or 50s may find themselves struggling to make payments from their retirement income. 
  • The exception to this rule is when a home buyer who is older than 45 has a high, steady income and a large amount of cash available to put down as a deposit - generally 50% of the purchase price or more. 
  • Every home is an investment, and the longer you own your home the longer it will have to gain in value. 
  • If you plan to sell your property when you retire, it’s ideal to buy it sooner, pay it off as fast as possible, and watch it grow in value. 
  • This will also protect you against slow years in the housing market when your home may not gain value and could even drop slightly. 

If you’re ready to take the leap and buy your first property, you probably have questions. We’d love to answer them for you. 

The Cape Realty team is on hand to guide you through the process of finding and purchasing a Cape Town home. 
Contact us today. 

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