Millennials. The word alone could elicit an eye-roll from the older generation. How could they possibly know much about the property market? Let alone, know how to invest? They make up 26% of the South African population and according to Schalk van der Merwe at Rawson Property Group, they have an increased influence on the property market.
“Those born between 1981-1996 are known as the millennial generation – this is anyone aged 24 – 39 years old.”
Who are the millennials?
Before we delve into how they’ve affected the property market, we need to understand what a millennial is. Most are under the assumption that they’re kids who have their phones glued to their hands. Often labelled as ‘entitled and bratty’, the millennials often get a bad reputation before they even enter a room.
Those born between 1981-1996 are known as the millennial generation – this is anyone aged 24 – 39 years old. Those under the age of 40 years old are becoming more money savvy. They’re entering the workforce and have learned from previous generations – like their parents – to find a way to generate an extra income. Investing in a future income is important to them, and property is the safest and most secure investment vehicle.
“Millennials favour a place that provides them with convenience – a place to work and play…”
How are they affecting the South African property market?
Yes, millennials rely on technology a lot but in today’s century, there’s an app for everything. It makes much more sense for them to conduct their business online. Here’s how they’re changing the South African property market:
There’s been an increased demand for mixed-use developments over the years. It offers the best of co-living and co-working. Most developments will provide residents with 24-hour security, stores to help with retail therapy, and the convenience of popping down to your grocery store should you need it.
Millennials favour a place that provides them with convenience – a place to work and play. After a tough day of work, they want to unwind and most mixed-use developments offer them the opportunity to do so.
Amenities are at the forefront
You may have noticed that listing websites have put emphasis on advertising the best features of a property. That’s because it’s what millennials look for when searching for a home.
Investors need to pay special attention to how they market their properties to millennials. Features that grab potential renters attention include security, parking bays, pet-friendly environments, laundry amenities, and a place that is close to all transportation routes.
City centre lifestyle with a touch of the suburbs
Believe it or not, not all millennials are looking to party. In fact, they’re looking to strike the perfect work/life balance. Not everyone likes the pace of the city centre, which means that they’ll search for a neighbourhood that is quiet but also close to the city centre.
Easy Access To Home Loans
Home loans are now easier to acquire – even a full option that includes transfer payments and extra fees. Previously, South Africans found it challenging to enter the housing market. Banks have noticed this and have made it easier with competitive rates. Millennials are now purchasing homes at a much faster rate.
“…as an investor, you have some insight into what you should be looking for when securing the ideal investment property.”
Do millennials have a positive influence on the market?
Millennials are thinking about the long-term future when it comes to property, which means that home loans have become less of a challenge to acquire, and investors now have to evolve how they market their property. This means that as an investor, you have some insight into what you should be looking for when securing the ideal investment property.
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