Tips for millennials who want to buy their first home
First-time home owners are likely to pay three times more than any generation before them
Millennials are likely to pay more than three times more on their first home than the generation before them, according to property information providers Lightstone Property. According to Lightstone, inflation and living costs have changed significantly over the last 20 years. Also, the earnings potential and spending power of South Africans have been affected by various economic factors. Still, the average house price for a first-time home owner is three times higher compared with previous years. Elize Botha, managing director of Old Mutual Unit Trusts, says most millennials entered the workforce during and after the global recession of the late 2000s and early 2010s. “They have had to navigate a tougher global economic environment than previous generations — one of high inflation and unemployment, social and political unrest, and low economic growth. All of this contributes to their ability to purchase a house, but not all is lost,” says Botha. Lighthouse data shows that millennia...