20 Reasons Why 20- something year olds should buy their first property in 2020

I often receive queries from young people who are interested in buying property but they are not sure if it is the right thing to do. Below are some of the most important reasons why young people should buy their properties right now;

  1. If you buy your first property in your 20s, you can actually finish paying it off sooner and you could end up having 2 or more properties by the time you go on pension therefore you would also have rent to supplement your pension
  2. Interest rates are at the lowest they have been since the 1970s so you are likely to qualify for a higher home loan value right now
  3. When you are young, you are at your richest because usually, you do NOT have kids and wife or hubby to worry about so this is your time to invest
  4. Millions of people have lost jobs and some have taken salary cuts so property prices are low right now as there are fewer people with money to buy
  5. When the economy improves and property prices increase, you will enjoy benefits of capital growth in your property and enjoy re-advance and further loans on your property
  6. Some of the people who have lost jobs or taken pay cuts are selling their properties so prices are highly negotiable
  7. You can start small by buying a small townhouse or flat and this is the best way to start, start small so you are not overwhelmed by big monthly bond repayments & other costs of owning a property
  8. While you are young and you have no kids, you can get a colleague or a friend to rent a 2nd bedroom in your property and use the rent to pay more into your home loan
  9. You can start small and one day when you have a family, you can sell the property and use the profit to buy a bigger property or
  10. You can always keep your first property as your investment property therefore enjoy a lifetime of rental income
  11. Low interest rates also mean that your monthly bond repayments are low but you can actually pay more than what your bank wants you to pay monthly
  1. Your first property will give you experience to manage a home loan and should make it easy for you to buy a bigger property at a later stage when you have a family
  2. You might quite like the idea of managing property and you could end up owning more small properties that you rent out to others
  3. You could qualify for FLISP Government subsidy if you earn under R22 000 a month, making ownership easy for you [we will write a full newsletter on FLISP soon]
  4. If you are a First Time Property Buyer, some banks will give you a loan higher than the purchase price of your property so you can pay for the legal costs of buying property
  5. Buying your first property now will automatically save you from the temptation of buying a big car because most of your money will go into paying your home loan
  6. Your parents can assist you to qualify for a better deal through Springboard [we will write a full newsletter on this soon]
  7. If you are a graduate, you would also qualify for a Pricing Discount if you apply through us
  8. If you are a young professional e.g. Lawyer, Doctor, Engineer, Accountant, Architect, Dentist, Actuarial Scientist, etc…  you would also qualify for a Young Professional Offering if you apply with us [we will write a full newsletter on this soon]
  9. Your parents can focus on their retirement planning  & move into a smaller retirement home when they know you are sorted and this will free you up from “Black Tax” complaints later on

You will gain invaluable experience of managing property and you could end up being an unlikely but extremely lucky property investor as you have time on your side to fail safe

Share this knowledge with your loved ones