Six ways young professionals can get ahead in property investment

You’re never too young to invest in property. For young professionals with a stable income, age really is just a number when it comes to getting ahead in property investment. Whether the plan is to invest in a rental property that will bring in additional income, or to buy a starter home to secure a foothold in the property market, here are six ways young buyers can confidently enter the property market. 

Buy with a friend or family member

Even for young buyers with a good income, being able to share a bond with a friend or family member will help lighten the financial load. Paying half or a third of a bond can make investing in a property more accessible and appealing for a young professional. However, it is important to set up the appropriate agreements to make sure everyone understands their financial responsibility. Each party on the bond agreement is responsible for the bond repayments, and if one person defaults, everyone is liable. With more than one income, joint buyers also have increased purchasing power. 

Keep below the threshold

The transfer duty threshold increased by 10% to R1.21 million on 1 April 2025, meaning that buyers who apply for bonds of less than this amount will save on additional transfer duty costs. According to BetterBond’s data for the 12 months ending January 2025, the average price of homes bought by buyers between the ages of 20 and 30 was R1.2 million. With the new threshold, these buyers will save R3,300 in transfer duties if they buy for less than R1.21 million. 

Buy off-plan

Another way for young buyers to secure property without having to factor in transfer duty costs is by buying off-plan in a new development. This means buying a property while it is still being developed. Not only does this save on upfront costs, but the new property will also increase in value when construction is complete. Many young professionals buy in new sectional title developments that offer lock-up-and-go convenience and minimal maintenance.

House hacking

For those who want to spend a bit more on a larger property, it’s possible to rent some rooms or parts of the home to generate a secondary or passive income to help cover the bond. Known as “house hacking”, this is a good way to generate an income from your home while you are living in it. A property with a garden flat or a section of the home that has its own entrance would be a good option for a house hack. The objective is to generate rental income to cover as much of the bond as possible. After paying off the bond, you can move out and invest in a second property using the income generated by the first. 

Fix and flip

Start your property mogul journey by buying a fixer-upper and selling it at a higher price to make a profit. Often, properties that need a bit of work sell at below asking price. But if you do your research and buy in an area where there is a demand for the type of property you have, after renovations it can sell at a considerable profit. This form of investment would most likely appeal to Gen-Z buyers (younger than 28) who want financial flexibility and short-term returns. 

Identify opportunities in areas sought after by families for schools, or in developments offering appealing lifestyle facilities that attract a particular segment of the market. Urbanisation is a significant factor driving homeownership currently. Mixed-use developments, micro-apartments in city centres and sectional title properties close to transport or economic hubs are therefore evergreen investment options.

Work with the experts

It is always advisable to work with a bond originator who will calculate how much you can afford, based on your unique financial circumstances. Young professionals can also use BetterBond’s online calculators to work out what they can afford, how much they will spend on bond repayments and how much they need to save if they want to pay a deposit. 

In some cases, banks may be open to lending above 100% of the property value, depending on the buyer’s risk profile. This could help cover additional costs such as transfer duties or legal fees, making homeownership more accessible for young professionals. However, this type of financing is risk-based, so it’s important to work with an expert to understand the implications.

It's important to apply for a bond pre-approval to get an idea of the recommended price range based on income and financial obligations. BetterBond doesn’t charge for a pre-approval. In addition, it can be completed online and at any time, which is ideal for those who don’t have the time to fill in multiple documents and submit them to various banks. The pre-approval application will also speed up the bond application and increase the chances of bond approval. 

Since BetterBond applies to more than one bank, home loan consultants can negotiate a better prime rate concession based on the buyer's risk profile. The current approval rate for clients who pre-approve with BetterBond first is 95% of all applications submitted to the banks on their behalf. This high approval rate motivates young buyers hoping to enter the property market as their professional careers gain momentum.