Why the rent-to-buy market is ideal for young South Africans

Moving into a home you own is an achievement that many hope to experience one day. With a fluctuating economy, investing in real estate is a decision that should be undertaken with full financial certainty. Seeff looks at why a rising number of young South Africans are choosing to rent-to-buy when picking a property to call home. 

Acknowledge purchasing power 

With an economy that faces uncertainty at the best of times, the sector that boasts young professionals with disposable income are the most comfortable of all South Africans. However, this results in many feeling the pressure to buy homes, vehicles and other assets to establish their position in society. When it comes to spending money on property, young South Africans are careful to test the waters before signing on the dotted line.

With a greater wealth of knowledge and an increasing number of professionals working remotely, being tied to a home loan or fixed property in one area has to be worth it to the young buyer. As empowering as being a property owner is, it’s crucial to keep in mind that renting before you decide to buy a home is a feasible option that should be taken into consideration if flexibility is what you’re after.

With millennials representing a higher percentage of buyers over recent years, catering to their requirements is essential to solidifying their input in the property market. Of the millions of young South Africans who are preparing to invest in a home, renting for an extended period of time is an attractive way to test out an entry-level property. Landlords take care of maintenance, property commitments and other issues that arise with owning a property. It is wise to use being a tenant to your advantage for as long as possible. 

Greater financial opportunities 

Being a young homeowner certainly has its pros, but more often than not, the cons sneak up on you in the form of unexpected maintenance costs, transfer fees, insurance add-ons and more. Renting before you buy a property affords you the chance to save while working towards your goal. If you plan on buying the same property you currently occupy as a tenant, this is the ideal time to get household issues resolved by the owner. Having a checklist of things you can get renovated, installed or fixed by the owner means you won’t have to shoulder the expense when you take over the property.

For the knowledgeable millennial, renting is the answer to finding a home that is the perfect fit. It allows you the freedom to explore living in different cities, suburbs and types of properties before deciding which would be the best option for your lifestyle and budget. The freedom that comes with renting before owning means that the property market experiences a healthy volume of new, eager tenants entering the fray each year. Positive about finding the perfect home, they are usually looking for entry-level properties with eco-friendly appliances and closeby amenities, thus lowering their monthly expenses and providing further opportunities to save money. 

Realise your real estate goals

Renting to buy puts the millennial generation in a powerful position towards maintaining a healthy homeownership process. It eliminates hesitancy and brings a well-researched sense of assurance into the mix. When deciding to rent-to-buy, consult a trusted property practitioner who will offer insight and advice on the best ways to begin looking for homes that tick every box. With the support of a reputable agency, you will be confident in making informed decisions that will increase your chances of becoming a happy homeowner sooner than you think. Contact us today.