More Future, Less Fear - How to Build a Life Beyond Rent

By Paul Stevens, CEO of Just Property - For many South Africans, owning a home remains a powerful life aspiration. It symbolises stability, control and a sense of belonging. The latest General Household Survey 2024 from Statistics South Africa shows that about 60.1 % of households own their dwellings, while 25.1 % rent.

For those looking to own, the transition from renting can feel daunting. First-time buyers often face two obstacles: affordability and fear of the unknown. Both can be overcome with informed decisions and sound preparation.

The payoff of owning: freedom and wealth

Owning a home offers both emotional and financial freedom. Emotionally, you leave behind the uncertainty of leases, rent increases and possible eviction. You gain the freedom to make your home truly yours and, with each payment, to build equity rather than fund someone else’s asset.

Financially, ownership becomes a long-term tool for wealth creation. Value appreciation, combined with responsible repayment, steadily builds personal equity. While interest on a primary-residence bond isn’t generally tax-deductible, you may qualify for deductions if a portion of the property is formally registered as a home office.

The South African Reserve Bank’s Quarterly Bulletin Q1 2025 noted an increase in the value of household assets, including residential property stock — clear evidence of housing’s role in private wealth accumulation.

This aspiration is particularly strong among younger adults. Lightstone Property data shows that South Africans aged 20 to 35 made up almost 30 % of all property transactions in 2024, and 69 % of those were first-time buyers. Even in a challenging economy, the dream of my own home endures.

The ultimate advantage of ownership is leverage: using the equity built in your first home to finance a rental property. Unlike a primary residence, expenses incurred to generate rental income — including bond interest, levies and rates — are fully tax-deductible against that income.

Step-by-step preparation: turning fear into action

So, where should you begin? “Be prepared” is a great motto. The transition from renting to owning requires a disciplined approach, and these steps below will turn anxiety into a practical plan.

1. Build your financial foundation

Start by understanding what you can genuinely afford. Your budget must extend beyond the monthly bond payment. The Income & Expenditure Survey 2023 (released January 2025) found that housing and utilities consume almost 35 % of household spending — a reminder to factor in all costs, from rates and levies to maintenance.

The SARB reports that household debt fell slightly to 62.4 % of nominal disposable income in Q2 2025 (from 62.7 % in Q1). That’s encouraging, but high debt still limits access to finance. Reducing existing obligations and increasing savings improves both affordability and resilience.

Even where 100 % bonds are available, saving for a deposit remains one of the most effective ways to demonstrate financial discipline and reduce long-term repayment costs.

Leverage government support. First-time buyers with household incomes between R3 501 and R22 000 may qualify for the National Housing Finance Corporation’s First Home Finance subsidy (formerly FLISP). This non-repayable grant bridges the affordability gap by supplementing your deposit or reducing the bond amount, often the key to turning an intention into ownership.

• Leveraging Government Support: If you are a first-time buyer with a household income between R3 501 and R22 000, you may qualify for a subsidy through the National Housing Finance Corporation’s (NHFC) First Home Finance programme (formerly known as “Flisp”). This non-repayable grant is designed to bridge the affordability gap by supplementing your deposit or reducing the required bond amount, making ownership more attainable.

2. Know what you can afford

In 2024, young first-time buyers spent an average of about R999 000 for their homes, while retirees purchasing for the first time averaged R730 000. Figures like these can help you set realistic savings targets and timelines, but will you get a home loan for that amount?

Ideally, you should know the answer to that question before you step into your first show house. Pre-qualification with a bond originator or lender is a great way to reduce anxiety. It will spell out the size of the bond you qualify for, strengthens your negotiating position and helps set realistic property expectations.

• One more thing: Don’t forget to factor possible interest-rate shifts and future maintenance costs into your budget.

3. Choose the right property type and location

The advantage of owning comes from buying the home that meets your long-term needs, not simply the first one you fall in love with. You need to be strategic to find a home that will increase in value and be a stepping stone to wealth. Don’t forget the old adage, “it’s better to buy the worst house in a good neighbourhood than to buy the best house you can afford in a bad neighbourhood”.

Remember, the financial implications don’t stop at the price tage – when you buy, you’re committing to a place and a series of ongoing costs, so choose a location and property type that suit your needs and budget, and don’t over-extend yourself.

• Consider co-ownership: This can be a smart way to enter the market sooner. Lightstone data shows that the proportion of buyers purchasing jointly with a partner, parent or friend rose from 14% in 2014 to 18% in 2024. If you opt to go this route, ensure that you have a clear legal agreement between all parties in place.

4. Partner with a trusted property professional

Buying a home is not a journey you should take alone. A knowledgeable property practitioner can help you navigate market conditions, evaluate fair value, and negotiate with confidence. From assessing the right price point to explaining the legal and financial processes, professional guidance turns complexity into clarity.

At Just Property, our agents combine national reach with local insight, ensuring that every buyer, from first-time homeowners to seasoned investors, makes decisions grounded in data, not guesswork. The right partner can save you time, stress and, in many cases, money by helping you spot opportunities others might miss.

Overcoming affordability fears

A home is the biggest investment many of us will ever make in our lifetimes. Understandably, that level of borrowing can feel intimidating and many prospective first-time buyers worry about interest-rate volatility. At its 18 September 2025 meeting, the SARB kept the repo rate at 7.00%, which implies a prime lending rate of about 10.50%. My response is always the same: address the fears by translating them into action. For example:

• Secure an interest-rate buffer – ensure your budget can handle a rise of one or two percentage points.
• Leverage your position as a first-time home buyer – do not ignore advantageous home loans or the First Home Finance subsidy simply because it seems complex. These once-in-a-lifetime opportunities can be the keys that unlock affordability.
• Explore "rentvesting" – this emerging tactic, where you buy a property to rent out while continuing to rent where you live, lets you start building equity and gaining experience as an owner even before you occupy your first home.

I believe that fear should not stop progress; it should inform your strategy.

Renting may suit some stages of life but owning opens up a different set of possibilities: equity growth, stability and the psychological comfort of saying “this is my home”.

Fear of affordability is real but it need not be paralysing. The message is simple: more future, less fear. If you approach owning deliberately rather than reactively, you move from renting because you have to, to owning because you’re ready.