Can South Africans Still Afford to Buy a House? Experts Say Yes

For many South Africans, owning a home can feel further out of reach than ever, yet property finance specialists insist this is not necessarily true, since rising living costs, political uncertainty and unpredictable careers make early, sound financial decisions more essential than before. Many feel disconnected from the idea of eventually owning a property, although knowing the right approach, timing and location matters more than simply having cash in hand. Renting offers flexibility, yet research shows close to 90 percent of South African tenants would still rather own their homes than keep renting indefinitely.

Key Takeaways

• Ownership builds equity, renting doesn’t: Bond repayments reduce the loan balance and grow the buyer’s equity over time, while rent only pays for the right to occupy a property, offering no long-term financial return.
• A deposit isn’t always required: First-time buyers can access financing (up to 108% with Standard Bank) that covers additional costs like transfer and bond registration fees, making entry into the market more accessible than commonly assumed.
• Starter homes are a strategic first step: Buying an entry-level property in a marketable area now, rather than waiting for a dream home, allows buyers to build equity that can later fund a bigger purchase, renovation, or retirement plan.

No Security Without Ownership

The most recent Ipsos study into perceptions of home ownership found that South Africans were, on the whole, more optimistic than respondents surveyed in other countries around the world. Only 38 percent of local tenants believed they would never be in a position to afford a property of their own, compared with 56 percent of tenants when measured on a global scale.

Despite this relatively encouraging outlook, the findings still pointed to an unfavourable perception amongst younger South Africans. As many as 72 percent of younger respondents felt that it had been considerably easier for previous generations to secure a good home, and they pointed to steeper property prices, elevated interest rates and heavier tax burdens as the primary reasons behind this belief.

Crucially, 89 percent of tenants indicated that they would rather own their properties outright than continue renting, whilst 74 percent felt that achieving genuine financial security without owning a home of one’s own was extremely difficult.

Michael Coulter, Head of Product Economics at Standard Bank Home Services, explained to The Citizen that renting essentially covers the right to occupy a property for a defined period of time, whereas a bond repayment also chips away at the outstanding home loan balance, thereby giving the homeowner the chance to accumulate equity within their property over time.

Local Versus Global Perceptions at a Glance

The table below has been added to summarise the Ipsos findings side by side, making the contrast between local and international sentiment easier to follow at a glance.

Measure	South African Tenants	Global Tenants
Believe they will never afford a home	38%	56%
Feel previous generations had it easier (youth)	72%	Not specified
Would prefer to own rather than rent	89%	Not specified
Feel financial security is hard without ownership	74%	Not specified

Early Steps, Big Rewards

Coulter acknowledged that not everyone finds themselves at the appropriate stage of their financial or personal journey to want, or indeed need, the long term commitment that comes with ownership. He did, however, note that the average age of first time buyers had fallen from 41 years old in 2020 to 38 years old in 2025, suggesting that more South Africans are entering the property market earlier than they were only a few years ago.

Prospective homeowners are nonetheless encouraged to look past the headline statistics and to weigh up their own personal circumstances alongside their broader financial ambitions before committing to a purchase.

Coulter pointed out that many potential buyers already have a fixed idea of the dream home they eventually want to own, yet that particular home might realistically only become attainable somewhere between 10 and 15 years down the line. He suggested that by purchasing a property that is suitable for the present moment, a buyer is able to build up equity, so that when the time comes to purchase that long anticipated dream home, the equity already accumulated can help fund the second purchase.

He urged buyers to properly understand the potential locked into an entry level property, taking into consideration factors such as the state of the local municipality, prevailing property price trends and the length of time they are likely to remain living in that particular home.

Understanding Starter Homes

According to Coulter, starter homes tend to hold their value comparatively well, largely because they occupy a highly marketable segment of the broader housing sector. He added that buyers who currently enjoy income stability stand to be rewarded over the long term, provided they choose to buy in the right area.

Coulter also explained that thorough property research, combined with buying during periods when the market is not particularly buoyant, can actually prove quite advantageous for buyers who are willing to take a longer term view.

Looking Beyond Today

A common misconception amongst prospective buyers concerns the need for a deposit, something Coulter stressed is not always a strict prerequisite for securing a home loan. He explained that the requirement depends heavily on the property itself, and whilst a deposit certainly helps because it reduces the overall loan value, this in turn allows buyers to access lower monthly repayments, or alternatively to choose to settle their home loan over a shorter repayment period.

Standard Bank has factored additional purchase related costs, such as transfer fees and bond registration fees, directly into its offering, which allows for up to 108 percent bond financing specifically designed for first time home buyers. Standard Bank also provides discounts on bond registration fees, along with built in cushions intended to absorb hidden or unexpected home related expenditure.

Coulter stated that customers who apply to Standard Bank for a home loan are automatically assessed to determine whether they qualify for an additional 20 percent Future Use registration amount, which can then be put towards acceptable home improvements. He noted that this additional amount does not attract any further registration costs.

First Time Buyer Financing at a Glance

The bullet points below have been added to make the key financing details easier to scan.

• Up to 108% bond financing may be available for qualifying first time buyers, covering costs beyond just the purchase price.
• Discounts on bond registration fees can reduce the upfront cost of securing a home loan.
• An additional 20% Future Use registration amount may be automatically assessed for eligible customers, to be used towards approved home improvements.
• The Future Use amount, where applicable, does not attract further registration costs.

Coulter acknowledged that monthly rental expenditure may, in some cases, work out fractionally less than a bond repayment, yet he maintained that transitioning from a reliable, long standing tenant into a future homeowner is a considerably easier switch to make than common perceptions might suggest.

He urged prospective buyers to look beyond a simple monthly payment comparison, arguing that home ownership does not have to remain purely a dream, but can instead become a practical step towards securing long term financial stability. For someone who is financially ready and who expects to remain in a particular location for an appropriate length of time, Coulter urged that the decision should be assessed well beyond the cash flow implications of just the first month or the first year.

Not Deciding Is Effectively Deciding

Once the initial hurdle of entering the market has been overcome, Coulter explained that home ownership becomes a cascading contributor towards broader financial flexibility. He noted that the more equity a homeowner builds up within their own property, the more they are able to leverage that equity later in life, whether that means upgrading to a dream home, renovating an existing property, extending the current home, or even downsizing later on in preparation for retirement.

Coulter emphasised that home ownership is not simply about having a roof over one’s head. He added that, beyond anything else, a home can ultimately become a legacy to pass on to children or to wider family members.

Unforeseen, and at times uncontrollable, economic factors affect tenants and homeowners alike, though Coulter observed that each group makes a financial commitment accordingly.

He pointed out that even renting, despite the flexibility it offers, comes at its own cost, and that this cost causes a corresponding delay in a tenant’s eventual entry into the property market. This, he explained, also implies less available time in which to build equity and to benefit from the long term advantages that come with owning a home.

Coulter concluded that even when a person does not feel ready to make a decision about home ownership, that hesitation is, in itself, effectively a decision being made.

Conclusion

Home ownership in South Africa remains more attainable than many perceive, provided buyers focus on informed timing, location and long-term equity rather than waiting for perfect conditions or a dream home from the outset. As Coulter’s insights make clear, starting small with a suitable entry-level property, understanding available financing options, and viewing ownership as a gradual, strategic process can steadily build the financial security and flexibility that renting alone cannot offer. Even choosing not to decide carries consequences, since every year spent renting is a year of potential equity and stability left unbuilt, making early, informed action the most valuable step any prospective buyer can take.