First-time buyers typically need to save for at least three years to afford the deposit on a home, and the VAT and fuel price increases announced in this year’s Budget are going to make it even more difficult for them to reach that goal.
“And as home prices continue to rise, they may feel like they are never going to get there, especially since they will also need cash to pay bond registration, legal and transfer fees,” says Rudi Botha, CEO of BetterBond, SA’s biggest bond originator.
“However, it is never a good idea to try to buy a home without a deposit, and there is another way for prospective buyers to shorten the saving process.”
The BetterBond statistics* show that the average home price currently being paid by first-time buyers is R797 000, with the average deposit being R91 000 – or about 11,4% of the purchase price.
In addition, he says, the most recent BankservAfrica figures show that the average take-home pay in South Africa is now R14 000 a month, so even a couple who are able to save 10% of their total earnings every month (R2800) will need almost three years (32,5 months) to save up the R91 000.