Getting into the property game is a goal Gen Zs are particularly focused on. While Millennials were happy to rent for a while, young adults born between mid-1990s and early 2000s are beginning to enter the property market in increasing numbers, with a large percentage stating that homeownership is a “high priority.”
Whether they are buying property to live in themselves, or to rent out as an income generating asset, Gen Zs are on track to maximise their savings and their property portfolios.
We asked Only Realty Property Group to share their insights on where Gen Zs are buying, what they are looking for and how they are managing to afford it all:
- How they manage to afford buying property early on:
Gen Zs are not rushing out to buy a property as soon as they land a job. Instead, they are delaying homeownership, with many choosing to live with their family during their first few years of employment to save up enough money for a decent deposit for their first property.
If you are in a rush to buy and can’t wait to save up a deposit, there is the option to get a 100% bond, which banks continue to approve at record high levels – especially for first-time homebuyers. Be sure to get a couple of bond offers from various banks to try to find an interest rate below prime.
- Which areas they are looking at:
Metros are definitely the first choice compared to rural areas for Gen Zs. Pretoria is right at the top of the list, followed by Johannesburg, eMahleni and Rustenburg.
Looking towards the coast, Cape Town saw the majority of first-time buyers, followed by Gqeberha (which has seen a spike in young homebuyers in recent months), and Durban.
- What they are looking for:
Gen Zs have a clear list of preferences when it comes to the type of property they are looking for, which includes the following features:
- Lock-up-and-go: Low maintenance and little hassle. Sectional title units are popular as they are not only easy to live in, but are also easier to rent out.
- Mixed-use developments: The live, work, play lifestyle appeals to Gen Zs, because it’s so convenient. Estates and complexes that offer not only security, but also have restaurants, shops, and entertainment options available makes for greater opportunities for socialisation, which is important to Gen Z buyers.
- Sustainability-focused: This generation is environmentally conscious and they are always looking for sustainable features in homes. This includes everything from energy-efficient appliances and solar panels to eco-friendly building materials.