However, there’s no reason why first timers should give up, says Mike Bester, CEO of Realty 1 International Property Group.

“The average age of the first time buyer has reduced substantially over the past twenty years,” says Bester. “In the eighties, very few people could afford to buy property before the age of thirty or older. These days, young graduates in their first job expect to be able to buy their own homes – and they are particular about the standard they want too.”

But there are very few people who can afford their ‘dream home’ at such a young age, he says, and young buyers should focus on getting into the market at a level they can afford.

Bester believes now is the time to go back to basics and save. “Young people should hopefully not yet have high monthly debt repayments,” he says, “which puts them in a good position to be able to cut down on expenses and pass the NCA’s surplus funds requirement. Visit your bank and find out what sort of home loan you qualify for, and what the monthly repayments will cost you – even if interest rates go up by another few percent.”

Once you know what you can afford to pay on a bond, says Bester, you should start putting away the difference between that amount and your current rental on a monthly basis. “Not only will this be an excellent basis for your deposit,” he says, “but it will also teach you the financial discipline of making that monthly payment. The average buyer these days needs a 10% to 20% deposit on the price of the property, as well as enough to cover transfer fees.”

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