Are our Youth doomed? How will today's Youth buy their first property? by Jonathan Broekman

After celebrating Father's Day with my children, aged 24 and 27, I can't help but feel a little uneasy about their abilities to make solid financial decisions for their futures. With the rising costs of living and property prices in many cities seemingly out of reach, many young adults wonder if they'll ever be able to afford their first home. Should they even buy property? Should they invest? Where, how, and when?

Here is my advice for the youth facing the working and investing market.

For Students

Invest early! Educate yourself!

Knowledge is power, especially when it comes to investing and property buying. Take courses in personal finance, read books, and follow financial news. Many universities and community colleges offer workshops and courses on financial literacy that can be invaluable.

Start saving early for a home deposit

Even if you can only save a small amount each month, start as soon as possible. Compound interest can significantly increase your savings over time. Consider opening a high-interest or tax-free savings account (TFSA) to maximise your savings potential. Check out EasyEquities Property Fund.

Consider part-time work or internships

Gaining work experience boosts your resume and helps you save money for future investments. Look for opportunities that align with your field of study, as these can often turn into full-time positions after graduation.

For Working Youth

Build a strong credit history; it's essential.

A good credit score is essential for securing a mortgage with favourable terms. Pay your bills on time, avoid too much debt, and regularly check your credit report for errors. Consider applying for a credit card and using it responsibly to build your credit history.

Create a budget and stick to it

Track your income and expenses to understand where your money is going. Identify areas where you can cut back and allocate those savings towards your down payment fund. Numerous budgeting apps can help you manage your finances effectively.

Research and choose the right investment

Investing in property is a significant commitment, so choosing the right property type in the correct location is crucial. Research different neighbourhoods, consider future developments, and consult with real estate professionals. Starting with a smaller, more affordable property like an apartment can be a good stepping stone.

Explore first-time homebuyer programs

Many governments offer programs and incentives for first-time homebuyers, such as grants, tax credits, and low-interest loans. Research what's available in your area and take advantage of these opportunities to make your first home purchase more affordable.

General Advice for All Youth

Think long-term. Real estate is generally a long-term investment. Be prepared to stay in your first property for several years to build equity and weather any market fluctuations. This long-term perspective can help you make more informed and less impulsive decisions.

Seek professional advice

Consulting with a financial advisor or real estate professional can provide personalised guidance based on your unique situation. They can help you create a realistic plan, understand market trends, and navigate the complexities of buying your first property.

Stay patient and persistent

One of the things I have learned is that homeownership can be tough, and oftentimes you may feel like you may never break that mold. But never lose sight of the fact that it's achievable with patience, persistence, and smart financial planning. Don't get discouraged by setbacks, the economy, or what others may say. 

Think proactively! Use these challenges as learning opportunities to grow. Through my own experience, I realise the importance of imparting this knowledge to my children. Guiding them with the wisdom and experience I've gained will help them make better-informed decisions in life, keeping them well-prepared for the future.
 

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Homes of Distinction CC holds a Fidelity Fund Certificate issued by the Property Practitioners Regulatory Authority (PPRA).