Despite talk that the younger generations aren’t purchasing new homes, the National Research Association found consumers aged 36 and younger represented the biggest share of home buyers – a booming 34% of all purchases in America. The same trend is seen in the South African market where, according to the eurobarometer report for the first quarter of 2019, the current average age for first time bond applicants is 34.
Given the current climate of the digital era and the rich opportunities that innovative banking solutions provide, the next generation of home buyers are stepping up their game. With the right attitude and the right people helping you navigate through the home ownership dilemma, owning your first home is a lot closer than you think. Here are three reasons why:
1. First time buyers’ mindsets are changing
Buying property involves two elements, your emotions and your finances. But millennials seem to be leaning more towards making decisions based on financial motivations than emotional ones. In other words, owning a home isn’t a burden but an investment.
According to a recent article in the Washington Post, the main factor driving home owning among millennials is financial considerations. “Millennial buyers, at 85%, are the most likely generation to view their home purchase as a good financial investment,” said NAR Chief Economist Lawrence Yun in the article.
Similarly, in South Africa, it seems like millennials have their feet firmly in the door. Of the 262 629 property transactions in South Africa in 2018, millennials were responsible for 103 853 (almost 40% of the total).
2. Future-focused architecture is enhancing a shared society
As attitudes towards a more shared society and more inclusive urbanization have evolved, the solutions presented by industrial designers and architects have reinvented the way we live amongst each other. Community, culture and creativity have merged to create an exciting melting pot that is breaking down traditional stereotypes and bringing society closer.
3. Banks are becoming more bold
Banks have upped their game as innovation and tech and new home buying and financial service companies have emerged. Banks have adopted a robust appetite for lending. They’ve become more competitive – offering more accessible, more affordable loans. Services like ooba homeloans can help you compare these different options for home loans.
To navigate through your own perpetual home buying dilemma, complete ooba’s “Ignite your Dream” survey. Share your thoughts, your concerns, your hopes. Your input may help you take that first important step with a R15 000 discount off the deposit on your dream home.
All data gathered will be used to help put the dream of owning a safe, secure home within reach of millions of other South Africans – just like you.
Ignite the dream. Complete the survey. And start planning today.
By Anina Visser