6 Ways Young Professionals can secure their future in the SA Property Market

• Partner with others: Share a bond with friends or family to increase purchasing power and ease financial responsibility.
• Buy off-plan: Save on transfer duties by purchasing a property before it's completed, with potential for future value growth.
• House hacking: Rent out rooms or sections of your home to generate passive income and help cover your bond repayments.

You’re never too young to invest in property, says Bradd Bendall, BetterBond’s National Head of Sales. “For young professionals with a stable income, age really is just a number when it comes to getting ahead in the property game.”

The property market is increasingly accessible to young buyers, and with the right strategies, they can confidently enter and build a strong portfolio. Whether it's investing in a rental property to generate additional income or purchasing a starter home to secure a foothold, Bendall offers six practical ways young professionals can begin their property journey.

According to BetterBond’s data for the 12 months ending January 2025, the average price of homes bought by buyers aged 20 to 30 was R1.2 million, a rise of almost 6% compared to the previous year. This reflects a broader trend, as Lightstone’s research shows that buyers under 35 are now paying more for homes than they did in 2018. Seven years ago, only 29% of these buyers were spending between R1 million and R3 million on a property. Today, this figure has increased to 36%.

Here are six key strategies for young professionals looking to make their mark in the property market:

1. Buy with a Friend or Family Member

For many young buyers, managing a bond on their own can feel daunting, especially in the current market. One way to ease this financial burden is to share the responsibility with a friend or family member. Paying half or a third of a bond can make investing in a property more accessible and appealing for a young professional.

Joint purchases provide increased purchasing power, allowing you to afford a better property. However, it’s crucial to establish clear agreements upfront to ensure everyone understands their financial responsibilities.

Each party on the bond agreement is responsible for the bond repayments, and if one person defaults, everyone is liable.

2. Keep Below the Transfer Duty Threshold

In April 2025, the transfer duty threshold increased by 10%, reaching R1.21 million. Buyers purchasing properties below this threshold can save on transfer duties, an important consideration for young buyers looking to keep costs manageable.

According to BetterBond’s data, the average price for homes bought by those between 20 and 30 is R1.2 million, so staying under the threshold will save buyers R3,300 in transfer duties. Bendall advises that sticking to properties below this amount can significantly reduce the upfront costs of homeownership.

3. Buy Off-Plan

‍Buying off-plan is another strategy to enter the property market with fewer upfront costs. When you purchase a property while it’s still under construction, you avoid transfer duty costs, which can be a significant financial relief. Furthermore, the property will likely appreciate in value by the time construction is completed.

Many young professionals opt for new sectional title developments, which are often low-maintenance, lock-up-and-go properties. These types of properties offer minimal upkeep, which is ideal for young buyers balancing careers and property management.

4. House Hacking: Rent Out a Portion of Your Home

‍For those willing to invest in a larger property, house hacking offers an excellent opportunity to generate passive income. This involves renting out rooms or sections of your home, such as a garden flat or a section with its own entrance, to help cover your bond payments.

House hacking allows young professionals to generate income from their property while they’re living in it. Once the bond is paid off, you can move out and invest in additional properties, using the rental income generated to further expand your portfolio.

5. Fix and Flip: Buy, Renovate, and Sell for Profit

For those with an eye for renovation, buying a fixer-upper can be a profitable entry point into the property market. These properties often sell below market value, and with the right investment in repairs and improvements, they can be sold for a substantial profit.

This strategy is perfect for those who want financial flexibility and short-term returns. To succeed, it’s essential to research areas with high demand, such as neighbourhoods with good schools or lifestyle amenities that attract families or other buyers. Urbanisation and mixed-use developments are driving homeownership, making certain areas prime for property investment.

6. Work with Property Experts

‍Navigating the property market can be complex, especially for first-time buyers. That’s why working with a bond originator can be invaluable. A bond originator helps you determine how much you can afford based on your unique financial situation and will assist in securing the best deal.

Young professionals can use bond originator’s online calculators to determine their affordability and potential bond repayments. In some cases, banks may offer more than 100% of the property’s value, which can cover additional costs like transfer duties or legal fees. However, this type of financing is risk-based, so it’s important to fully understand the implications.

Next Steps for Aspiring Property Investors

‍Before diving into the property market, Bendall recommends applying for bond pre-approval. This will give you an idea of the price range you can afford, based on your income and financial obligations. “Bond originators like BetterBond doesn’t charge for pre-approval, and it can be done online at any time, making the process simple and convenient,” he says.

Additionally, the high approval rate (95% for pre-approved clients) can significantly increase the likelihood of securing your bond. By working with a trusted bond originator, young buyers can ensure a smoother, more successful journey into the property market.

The property market is full of opportunities for young professionals willing to take the right steps. With the right strategy, you can build long-term wealth and secure a strong financial future.

By following these six tips and working with the right experts, young professionals can confidently enter the property market, setting themselves up for success in the years to come.

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