When is the right time to make the property investment leap?
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By Andrea Tucker
One of the smartest ways to save and grow your money is to invest, and property remains a safe and reliable investment in times of uncertainty.
Creating wealth is the ultimate money goal, but it all starts with saving.
By saving, you’ll be in a better position to own property, and use that property to create wealth.
When is the best time to start investing in property?
The younger you are when you buy your first home, the quicker you can pay your property off, and the sooner you will be debt free (or at the point where you can upgrade to a bigger property).
The average age of South Africans who are investing in property for the first time, though, is older than we think. This is due to the earning demographics in this country, and the large, growing middle class. The average age of a first-time South African home buyer oscillates between 35 and 40 years annually.
Circumstances that have contributed to the increased age of first-time home buyers include slow economic growth and high unemployment rates, the desire to travel and choose experiences over stability and security, the high price of deposits and house price increases.
The question of when the best time is to invest in property is a tricky one to answer. I believe that as soon as you can afford all the costs, it is time to take the plunge.
Here is her advice on what to consider before you commit:
- Are you financially secure?
- Are you able to save regularly?
- Are you ready to settle and put down roots?
- Are you certain about what you want?
- Are you aware of the costs and challenges of owning your own property?
- Are you happy with paying off a home?
- Are you happy with the price of properties in the areas you like?
- Are you willing to use cash windfalls wisely?
If your answers to these questions are “yes”, then it is probably a good time for you to start property hunting. Keep in mind that having a monthly budget and sticking to it will ensure you start your home ownership journey off on the right foot.
Andrea Tucker is the director of Mortgage Me