Getting a foot on the property ladder has now become an important step for many women when creating financial security. When it comes to securing a dream home in the property market, single women are starting early.
Here is what you need to know when it comes to positioning yourself to be a homeowner as a woman.
There is more opportunity to buy
Statistics released by Lightstone Property, have shown that single women have been rivalling single men when it comes to homeownership. With more women entering the workforce that offers better opportunities and a decrease in the gender pay gap, it means that women are now able to afford property on their own.
Single women now form 27% of property owners compared to 26% of single men. Furthermore, women are emerging as primary home loan applicants due to an increased number of women becoming higher earners of a household or the sole earner.
Buying a home in South Africa can be a way for many women to provide financial security, build generational wealth and also create a valuable asset that can open doors to other financial opportunities.
Women are less likely to default on loans
The interest rate on a home loan can be vital in assisting homeowners to assess if they can afford a home. The last thing any wants is to have their home repossessed or having a house become a financial strain.
FNB Home Finance data shows that women are less likely to default on their loan repayments by 4.1% compared to men (6.56%). This can play a crucial role, especially for women who are planning on buying more than one property. Proving to lenders that you will be able to afford and repay your loan can make the difference between you getting onto the property.
Having life insurance is one of the ways in which you can provide surety to lenders that you will be able to pay off your loan no matter what happens to you. It also gives you peace of mind knowing that your loved ones will be protected even when you die.
Things to consider before house hunting
Avoiding common mistakes before you go house hunting can save you financially. It can also help you avoid financial mistakes that can affect you for years to come. Before you start looking for a loan or your dream home, make sure that you:
Know how much you can afford. Most women tend to purchase properties that are under the R1 million mark or go up toR2.5 million. No matter where you find yourself, make sure that you check if you will be able to afford all the costs of buying a home.
Have a deposit in place. The general rule of thumb is to save a deposit of at least 10% - 20% of the value of the home. It can improve your home loan's interest rate and could also help you pay off your home loan on time.
Have life cover. Protect your home, your loved ones, and your peace of mind. You can also use it as surety against a loan, but make sure that you understand the implications that come with doing this.
Take the interest rate into consideration. Always remember to carefully assess the interest rate and the impact it has on your repayments or sustaining a loan or policy.
