Many women have grown up believing that their journey to property ownership involves a man, more specifically, being in a relationship with a man, either married or long-term.
They did not believe that they could own a property before marriage, buy one on their own, or even that they could build property empires – but fortunately, this mind-set is changing and women are taking advantage of the opportunities for property ownership and investment.
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Of course this does not mean that women cannot co-own property with their partners or even fellow investors, it just means that they know they are not limited to only that.
Take the latest figures from Lightstone, for example. Women own, either on their own or in partnership with other men or women – more than half of the residential property stock registered in South Africa. Furthermore, the data suggests that women-only buyers are edging towards buying more expensive properties.
“By the end of July 2022, women accounted for, individually or in partnership, 57% (3 896 595) of the total volume of properties in the market (6 868 778). This makes up 54% (R3 440b) of the total value (R6 414b) of residential properties registered at the Deeds Office,” Lightstone reveals.
Whether single by choice, or single by circumstance, it is clear that women are not waiting around to start climbing the property ladder, says Andrea Tucker, director of MortgageMe .
“While the prospect of embarking on a home ownership journey with a single income may seem daunting – particularly in light of the recent interest rate spike – it is not an unattainable goal.”
However, it is important to remember that home ownership is a marathon, not a sprint. By making wise financial choices and following the right advice, you can take the plunge with full confidence.
She offers the following advice:
Join the wave
Recent statistics reveal more career-minded women between 24 to 41 years old are buying homes than their male counterparts. And more good news is that as the gender pay gap slowly shrinks, buying property and securing financial freedom is within reach for more women than ever before. As women take control of their own finances in increasing numbers, they consider financial obligations more thoroughly and tend to be viewed favourably by lenders.
Singletons can do it
While it can be a challenge for singletons of all genders to go alone on the property ladder, it is possible.
“Ensuring you have a good credit score, and money for a decent deposit will contribute hugely to your house buying success. Draw up a realistic budget factoring in your lifestyle and hidden costs such as property taxes and emergency savings to get a realistic picture of your finances. Having a pre-qualification letter will ease the process tremendously,” says Tucker.
Keep the end in mind
Although no prospective buyer likes the idea of moving out of their dream home before the deal is even signed, it’s important to factor in the potential resale value of your new home and the factors that influence said value. Property close to good schools and shops will always remain popular, she says.
Maintaining the house and the garden and pool will also attract potential future buyers.
“Also, avoid going overboard with too many custom-made alterations as unique features might reduce the home’s resale value and limit the number of potential buyers interested.”
Do it for yourself
Saving as much money as money to contribute to a deposit is worth it, Tucker says, adding that, foregoing extravagant purchases, at least for a while, is a small price to pay for independence and financial security.
“Women shouldn't put themselves in a vulnerable position if they can help it. That means planning, budgeting, saving, investing, and building wealth,” adds Tucker. Employers are more open to remote work since the pandemic and owning a house with an office area is tax deductible. Find out how you can make your money (and your property) work for you.
Additional income streams
Renting out a room or a ‘granny flat’ can make bond repayments that much easier.
“Additional funds can be saved for unexpected expenses or be diverted straight into a savings account. Having a regular extra revenue stream can be a massive help for single homeowners. The truth is unforeseen (and costly) events happen to everyone. The bigger the rainy-day fund, the better.”
Security and stability
Thanks to the added convenience of lock-up-and-go apartments, security complexes and estates are popular choices for single women.
“Whatever arrangement works best for you though, avoid poorly lit areas and entrances. Opt for a home with a security system or budget to have one installed before moving in. It’s a good idea to do your homework on your neighbourhood of choice before house hunting, speak to estate agents and people who actually live in the area.”
With the right prep, Tucker says you can join other singleton homeowners. Limit your expenses, find ways to gain additional income, get familiar with your financial situation and be on the lookout for a good bargain.
“The freedom of owning your own home is an achievement to be proud of – and one you can decorate exactly how you want.”
Yael Geffen, chief executive of Lew Geffen Sotheby’s International Realty says financial planning for women is vital and that they need to securing their financial futures by starting to save as early as possible and making long-term investments to ensure their golden years are not their leanest years.
“South African women now live five and a half years longer than men and, with almost half of all marriages ending in divorce, it’s imperative that women exercise their hard-won rights by taking charge of their financial futures.
“It’s critical that those who are married or in permanent long-term relationships always be active participants in financial decisions and no matter their marital status, it’s never too soon to start planning and investing.”
Although women have long been the key decision-makers when it comes to home-buying decisions, she says it’s not that long since they could only buy property or enter into any type of binding contract with the authorisation of their fathers or husbands who then had legal ownership as well as managerial rights.
“These days, whether single or married, both sexes enjoy equal rights regarding financial autonomy and property ownership as stipulated in the Bill of Rights but until very recently the number of male buyers continued to far outnumber their female counterparts.
“However, this has begun to change and not only have women caught up, they are taking the lead with a slightly higher percentage of single women now buying homes than single men.”
Geffen says that although buying a home and making such a large and long-term financial investment can be very daunting, women are beginning to realise that the benefits far outweigh the disadvantages:
- Renting offers no return on investment whereas, even in a depressed market, homes typically increase in value, build equity and provide a nest egg for the future.
- Your costs are predictable and more stable than renting because they're ideally based on a fixed-rate mortgage. Even if they are not, repayments linked to the interest rate are likely to increase well below annual rental inflation.
- Locking yourself into a mortgage payment helps level out living expenses, so when income goes up it can be budgeted elsewhere.
- Paying off a mortgage allows homeowners a long-term plan to significantly reduce their living expenses as they move toward a retirement budget.
- Moving from rental to rental is a not only a major inconvenience but also a financial and emotional burden.
- The interest and property tax portion of your mortgage payment is a tax deduction.
- Staying put for longer periods of time also creates social benefits that range from established friendships with neighbours to community involvement and consistent educational opportunities for children.
- Your investment can be leveraged to make another investment.
- And, ultimately, owning a home means putting down roots and having a space that is truly yours.
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