Home buyers over the age of 50 are paying about twice as much for their homes on average than buyers aged under 30‚ according to the latest property market statistics from BetterLife Home Loans.
However‚ they are only paying about 30% more on their monthly bond repayments.
The BetterLife figures show that the average home purchase price paid by buyers aged between 20 and 30 over the past 12 months was R772 000‚ while that paid by buyers aged 50 to 60 was R1.3-million – and that paid by buyers over 60 was R1.7-million
BetterLife chief executive Shaun Rademeyer said: “However‚ there is a much narrower gap when it comes to the home loans obtained by buyers in these different age groups.
“Our statistics show that buyers aged 20 to 30 are paying an average deposit of about R90 000‚ which puts their average bond at R682 000 and their average monthly repayment at just over R6 800.”
Most buyers over 50 were repeat buyers‚ he said‚ and these figures illustrated the greater buying power that resulted from building up equity in a property.
This could then be used as a deposit to acquire a more expensive property‚ without raising their monthly home loan repayment too much.
“Our stats also reflect this in the rising percentages of home loans being granted in higher-price categories.
“In the 12 months to end-May‚ 38.7% of all homes loans granted were for more than R1-million‚ compared with 36.5% in the previous 12 months.”
At the same time‚ Rademeyer said‚ younger buyers were clearly starting to struggle now to get on to the first rung of the property ladder.
Banks were applying strict credit qualification criteria‚ which resulted in what might look like‚ but was not‚ a decline in demand.
“The percentage of home loan applications being made by first-time buyers has actually increased over the past 12 months from 46.1% to 47.5%.
“On the other hand‚ our approval ratio is running at 75%, so with our assistance‚ buyers really have a good chance of their application being approved.”