Hey beautiful! Last week we talked about taking control of your money through better budgeting, and now I’m so excited to dive into something that probably keeps you up at night with equal parts excitement and terror – buying your first home.
Whether you’re single and wondering if you should wait for “the one” before taking the plunge, or you’re newly married and trying to figure out the smartest way forward, I’ve got you covered. And honey, we’re going beyond the basics today. We’re talking strategic moves that could literally save you hundreds of thousands over your lifetime.
The Great Timing Debate: Before Marriage or After?
Flying Solo: The Single Buyer’s Power Move
Let me start with something that might surprise you – being single when you buy your first property can actually be a massive advantage. I know, I know, everyone’s asking when you’re getting married, but here’s why your single status might be your secret weapon:
You Move at Your Own Speed No committee decisions, no compromising on location because his work is on the other side of town, no waiting for someone else to get their financial act together. When you find the right property at the right price, you can move fast.
Your Credit Record is Purely Yours Your home loan approval depends only on your income, your debt, and your credit history. You’re not gambling on someone else’s financial baggage potentially affecting your application.
You Can Choose Purely Based on Investment Potential That cute cottage might not be practical for a future family, but if it’s in an up-and-coming area with great rental potential, you can make that call without worrying about school districts or extra bedrooms.
But Here’s the Reality Check You need to qualify for the full bond amount on your single income. In today’s market, this usually means earning at least R40,000+ per month for a decent property in most areas. If you’re not there yet, don’t stress – focus on building your income and deposit first.
The Married Advantage: Double the Power
Getting married before buying definitely has its perks:
Combined Income Strength Two incomes typically mean you can qualify for a much larger bond. If you’re both earning R25,000, together you might access properties that would be impossible individually.
Shared Deposit Burden Building a R200,000 deposit is much easier when two people are contributing. Plus, you can potentially access both your retirement funds for first-time buyer benefits.
Risk Distribution If one person loses their job, the other can still cover the bond payments. This security can be invaluable, especially in uncertain times.
The Flip Side You’re both liable for the full debt. If things go south in the relationship, you’re still both responsible for every cent owed on that bond.
The Trust Option: Advanced Wealth Protection
Now here’s where things get really interesting, and it’s something most young adults never consider – buying property through a trust.
What Exactly is a Trust?
Think of a trust as a separate legal entity that owns assets on behalf of beneficiaries. When you buy property through a trust, the trust owns the property, not you personally. You’re typically both the trustee (person managing the trust) and the beneficiary (person who benefits from it).
Why Young Adults Should Consider This Route
Estate Planning from Day One If something happens to you, the property doesn’t go through the lengthy and expensive estate process. It’s already held in trust for your beneficiaries. This is especially powerful if you’re single – you can specify exactly who benefits without family drama.
Potential Tax Benefits Trusts can offer tax planning opportunities, especially if you plan to build a property portfolio over time. You might be able to manage capital gains tax more effectively.
Creditor Protection If you’re in a profession with high liability risk (think medical professionals, business owners), holding property in trust can offer some protection from potential creditors.
Flexibility for Future Planning When you do get married, your spouse can become a beneficiary without needing to transfer ownership. Similarly, if you have children later, they automatically benefit.
The Trust Reality Check
Higher Setup Costs You’ll pay more upfront – legal fees for establishing the trust, annual administrative costs, and potentially higher transfer costs.
More Complex Administration Trusts require separate tax returns, proper record-keeping, and ongoing compliance. You can’t just treat it like your personal bank account.
Banking Considerations Some banks are more trust-friendly than others. You’ll need to work with lenders who understand trust structures and are willing to provide financing.
When It Makes Sense If you’re earning R50,000+ per month, planning to build a property portfolio, have complex family dynamics, or work in a high-risk profession, the benefits often outweigh the costs.
Accelerated Repayment: The Wealth-Building Game Changer
Here’s where young adults have a massive advantage that most people waste – time. When you’re 25 and take a 20-year bond instead of 30, you’re setting yourself up for incredible financial freedom in your 40s instead of your 50s.
The Power of Shorter Repayment Terms
Let’s get real with some numbers. Say you’re buying a R1.5 million property with a R200,000 deposit, so you need a R1.3 million bond at 11% interest:
30-year bond: Monthly payment of approximately R13,700 20-year bond: Monthly payment of approximately R16,200
15-year bond: Monthly payment of approximately R18,900
The difference between 30 and 20 years is only R2,500 per month, but you’ll save over R800,000 in interest and own your home 10 years earlier.
Why This Works Especially Well for Young Adults
Lower Lifestyle Inflation When you’re 25, the difference between paying R13,700 and R16,200 per month feels manageable. Try making that adjustment when you’re 35 with kids and a lifestyle you’ve grown accustomed to.
Career Growth Potential Your income will likely grow significantly over the next 10-15 years. What feels like a stretch today will feel easy in five years.
Compound Benefits Once your home is paid off, that R16,200 per month can go straight into investments. Starting this at 45 instead of 55 gives you a decade more of wealth accumulation.
Smart Acceleration Strategies
Annual Bonus Strategy Use your annual bonus to make one extra bond payment per year. This can reduce a 20-year bond to about 16 years without affecting your monthly budget.
Rental Income Acceleration If you buy a property with a cottage or can rent out a room, put that rental income straight onto the bond. Even R3,000 per month can cut years off your repayment period.
The 13th Payment Method Divide your monthly payment by 12 and add that amount to each monthly payment. This effectively gives you one extra payment per year without feeling the pinch.
Strategic Financing Based on Your Life Stage
Single and Starting Out (23-28 years old)
Focus on: Location, growth potential, and rental income possibilities Financing strategy: Smaller deposit, longer term initially, then accelerate as income grows Consider: Trust structure if building wealth strategically or family dynamics are complex Timeline: 25-30 year bond, plan to refinance and accelerate within 5 years
Engaged or Newly Married (25-32 years old)
Focus on: Properties that work for your 5-10 year vision Financing strategy: Combined income for better qualification, joint application Consider: Legal agreements about contributions and ownership percentages Timeline: 20-25 year bond with acceleration strategies built in from the start
Established Couple (30-35 years old)
Focus on: Forever home potential or solid investment properties Financing strategy: Aggressive acceleration, multiple properties through trusts Consider: Tax implications, estate planning, children’s future needs Timeline: 15-20 year bond with maximum acceleration
The Hidden Costs Nobody Talks About
Upfront Costs Beyond the Deposit
- Bond origination fees (usually around 1% of the bond amount)
- Attorney fees for transfer and bond registration
- Deed search and valuation costs
- Moving expenses and immediate repairs
Budget at least R50,000-R80,000 in additional costs beyond your deposit.
Ongoing Costs That Affect Affordability
- Rates and taxes (typically R1,000-R3,000 per month depending on area)
- Levy if it’s a sectional title property
- Building insurance (different from homeowners insurance)
- Maintenance and repairs (budget 1% of property value annually)
Making Your Strategy Work
Building Your Deposit Faster
High-Yield Savings Challenge Put every bonus, tax refund, and unexpected income directly into a high-yield savings account earmarked for your deposit. Even R500 per month adds up to R30,000 in five years with compound interest.
Side Hustle Acceleration Channel income from freelancing, consulting, or side businesses directly into your property fund. This money feels “extra” so it’s easier to save rather than spend.
Investment Growth Strategy Consider unit trusts or ETFs for deposit building if you’re still 2-3 years away from buying. The growth potential can significantly accelerate your timeline.
Choosing the Right Lender
Don’t Just Look at Interest Rates Consider the full package – flexibility for extra payments, options for payment holidays during emergencies, and how they handle trust applications if that’s your route.
Pre-Approval is Your Power Move Get pre-approved before you start shopping. This shows sellers you’re serious and can move quickly when you find the right property.
Negotiate Everything Bond origination fees, interest rates, and even attorney fees can often be negotiated. Don’t accept the first offer.
Your Next Steps
Whether you’re single and ready to take control of your financial future, or married and planning together, property ownership is one of the most powerful wealth-building tools available to young adults.
If you’re single: Focus on building your income and deposit while researching areas with good growth potential. Consider properties that offer rental income opportunities.
If you’re married: Combine your financial strengths strategically. Look at both your names on the bond for maximum qualification power, but consider trust structures for long-term wealth planning.
For everyone: Remember that buying your first home isn’t just about having a place to live – it’s about building wealth, creating stability, and setting yourself up for financial freedom in your 40s instead of your 60s.
The best time to buy property was 10 years ago. The second best time is today – if you’re strategically prepared and have a plan that aligns with your life goals.
As Proverbs 21:5 reminds us: “The plans of the diligent lead to profit as surely as haste leads to poverty.” Your home buying journey is about diligent planning, strategic thinking, and building something lasting – not just for yourself, but for the generations that come after you.
What’s your next move going to be?
Ready to turn your property dreams into a strategic reality? At Elevate Finance Partners, we help young adults navigate complex financing decisions with personalized strategies that grow with your life. Because your biggest investment deserves expert guidance.