First generation home buyer concerns

Private Property South Africa
Press

A gap has been created in the market for further education centred around the home buying process.

Transformation within the property market is slowly but surely taking place, with single black females now leading the charge in terms of homeownership. This slowly evolving process of transformation is highlighting the difference in concerns for first- versus second-generation homebuyers and is creating a gap in the market for further education centred around the home-buying process.

“When attending the Property Show by Private Property in Johannesburg last month, it admittedly took me by surprise to see just how many first-time buyers chose to give up their weekend to cram into a crowded convention centre to find out how to enter the property market. I think this partly reflects the reality that there is a new generation of homebuyer entering the market for the very first time in their family’s history who consequently have nobody to call on for advice around this topic,” suggests Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett.

Today, consumers have the world of information at their fingertips, which often makes them ask more in-depth questions when purchasing a property. However, first-generation homebuyers are often less familiar with the topic than their second-generation home-buying counterparts, which tends to make the whole house hunting process far more daunting and overwhelming for them.

Beyond having to work out the various steps in the home buying journey by themselves, first-generation homebuyers also tend to have the additional pressure of trying to accommodate the needs of both their immediate and extended family. Many first-generation homebuyers will need to purchase a property that can house themselves as well as their mothers, fathers, grandparents and even aunts and uncles. Financing the home can also be tricky, because many will have to send money back home to support their extended family, which means that they will have less disposable income with which to afford the bond repayments.

“This is why I believe it is so important for the real estate industry to get behind events such as the Property Show and why I agreed to be a speaker at this event – even though it meant missing one of the Rugby World Cup games that was airing during my talk. These events are important because they allow first-generation homebuyers the opportunity to find out more about the various financing options available to them, as well as how to apply for a home loan and what to expect during the home buying process. Hopefully, through more events such as these, we will be able to help more first-generation homebuyers through the house hunting process and see further transformation within the South African homeownership space,” Goslett concludes.

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