Young black women 'are taking over the property market'
Data shows that a significant number of young women own more than one property
Young, black women in their mid-twenties and early thirties are driving the property investment market in the country.
This is according to data from credit bureau TPN, which shows that most property investors are in their mid-twenties to early thirties.
“The most active property investor buying in SA is female and under 30,” says Michelle Dickens, MD of TPN.
Dickens says the historic low interest rates have resulted in a significant shift in rental and buying patterns because though millennials are known to live in rented accommodation for as long as possible, more are starting to see the benefits of investing in property.
Data from TPN shows that the so-called “micro landlords”, who own fewer than 10 investment properties, make up 98% of the investment market. A significant 87% of investors own two to four properties, while 11% have between five and nine properties.
Carl Coetzee, CEO of BetterBond, says property remains a safe investment option, especially in challenging economic times.
“People will always need a home and, with the prime lending rate at the historic low of 7%, there has never been a better time to finance a bond.”
According to Coetzee, 40% of BetterBond’s applications this year have been from women buyers, up 12% year-on-year.
Bond approvals for women have also increased significantly in the past decade, increasing from 14% in 2010 to 41% in 2020. Of these applications, 60% were from single women.
“These numbers show unequivocally that women are asserting their financial independence, and recognising the value of investing in a stable asset class such as property. The notion of a male and middle-aged investor has been turned on its head, and this broadening of the investor pool will go a long way to ensuring that property investment remains dynamic and sustainable,” Coetzee said.
Dickens agrees that lower interest rates have certainly motivated millennials to invest in the property market.
“It could also be because property prices, in nominal terms, have remained fairly flat in most areas,” she adds.
Rental properties allow people to change jobs and move around but, now that millennials are moving out of this life phase, there’s a growing interest from this cohort in buying, rather than renting. And, in many cases, they are investing not only in their primary residence but in investment properties that will offer substantial long-term yields.
Coetzee says there is substantial evidence that women are going to continue to have a significant affect on the property market and its post-Covid recovery.