Millennials. Generation Y. These popular terms are synonymous with stigmatisation. This is why, at their mention, older individuals either sigh deeply or roll their eyes. What are the chances that they know much about property? Much less, understand how to invest in property? Making up 26% of the South African population, millennials have a significant influence on the property market as said by Schalk van der Merwe at Rawson Property Group.
“Those born between 1981-1996 are known as the millennial generation – this is anyone aged 24 – 39 years old.”
Who qualifies as a millennial?
Firstly, let’s be clear on what a millennial is before we evaluate their impact and role on the property market. People often assume that they are kids who are obsessed with their phones and are tech savvy. Many times, millennials already have a bad reputation before they even get to give off any impression. Most consider them as ‘lazy, bratty and entitled.’ However, everyone who is born between 1981 – 1996 is part of the millennial generation – this includes people aged 24-39 years old. This group of ‘under 40s’ is also becoming more experienced with money. Having learned from the previous generation – their parents – millennials join the workforce with an objective of generating multiple sources of income. With the high cost of living, they prioritise on investing towards a future income through property investing since it’s more safe and secure.
How do millennials influence South Africa’s property market?
It’s true, millennials depend on technology a lot and they’ve got reason to since there’s an app for everything these days. Consequently, they conduct most of their business over the internet. Below are various ways they’re changing the property market in South Africa:
Multi-use developments
Throughout the years, there’s been a growth in the demand of multi-use or mixed-use developments. With these, you can expect to find the best of both: co-working and co-living. Most developments give residents 24-hour security, stores that provide retail therapy, and the convenience of visiting a grocery store nearby to quickly buy something.
Having a place to work and play is crucial to millennials and for them it’s all about the convenience. They want to unwind after putting in long hours at work and most multi-use developments grant them the chance to do so.
Amenities take the lead
By now, you’ve probably noticed that listing websites emphasize advertising the most outstanding features of a property. Why? This is what millennials search for when they shop for living spaces. To make sales, investors need to give special attention to the way they market their properties to millennials. There are specific features that attract these prospective renters which include laundry facilities, security, parking bays, pet-friendly settings, and places that are near to all transportation routes.
2 in 1 – City centre culture with some suburban vibes
As shocking as it may sound, not all millennials are looking to party. As a matter of fact, some are interested in striking the perfect work/life balance. They prefer a quieter pace of life than the city centre buzz. A place in a quiet neighbourhood that is close to the city centre is an ideal spot for them.
Easy Approval of Home Loans
It’s now easier to get a home loan – even a 100% option which covers all the transfer costs and additional fees. Before, it was very challenging for South Africans to enter the housing space. Noticing this, banks adjusted their procedures and made it easier to buy with their competitive charges. Now more and more millennials are buying properties much quicker. “…as an investor, you have some insight into what you should be looking for when securing the ideal investment property.”
Is the influence of millennials on the market positive?
Millennials are also considering the long-term future regarding property investing which has made acquiring home loans less challenging. Also, investors must now enhance and evolve how they sell their properties. Think of it this way: your role as an investor is to be more informed about what to look out for when securing the best property deal to invest in.
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