Addressing affordability and security for single women buyers

It's International Women's Day this week, and in recognition of that, RealNet would like to see as many South African women as possible become happy and successful homeowners.

"We believe that home ownership is the best foundation for most people who want to start building personal wealth and prosperity, and that this is a major benefit for the increasing number of single women, with and without children to care for, who are now buying their own homes in SA," says Gerhard Kotzé, CEO of the RealNet property group. "However, it must be acknowledged that this group of homebuyers face particular difficulties and concerns when acquiring a home, and these need to be specifically addressed."

Affordability is the first of these obstacles, he says, because single women have only one salary to use to qualify for a home loan, and continue to deal with a gender wage gap, although this is narrowing.

"So it is probably not surprising that single women are major consumers of SA's various government housing subsidies. In fact, figures from property data company Lightstone show that 45% of subsidy recipients up until the end of 2023 were single women, with 29% being single men and 26% being couples. This means that of the 1,65m women who have applied for these subsidies to date, some 1,05m are single.

"Many have benefited from the Breaking New Ground (BNG) government subsidies* which were first introduced in the late 1990s, and used this assistance to acquire low-cost homes for cash. BNG subsidies are only available to first-time homebuyers who are SA citizens over the age of 21 and who earn less than R3500 a month, so it is unlikely that most of these beneficiaries would have been able to qualify for bank finance.

"But it seems that an increasing number of single women are also making use of the 'Flisp' subsidies which are available on a sliding scale to first-time SA buyers who earn between R3500 and R22 000, which is the minimum salary required by most banks in order to obtain a home loan."

Kotzé says the latest available figures show that single women buyers now account for about 22% of residential properties purchased and mortgaged each year - which would translate into some 60 000 of the property transfers registered at the Deeds Office last year, for example. By contrast, single men only account for around 16% of such transfers.    

"The average property price being paid by these single women buyers is around R800 000, which means they need a bond of around R720 000 if they are able to put down a 10% deposit. This, in turn, indicates that their monthly bond repayment is around R7800 at current interest rates - or less than the current average rental in SA of R8300 a month."

However, he says, it is important to remember that when you are a homeowner rather than a tenant, you are also responsible for all the other costs associated with your property, such as insurance and property tax, as well as utilities. "If you live in a security complex, you will also need to pay the monthly levy. And if you don't, you should budget at least 1% of the property's value per year for ongoing maintenance.

"All these expenses are going to take another chunk out of your monthly salary, in addition to the bond repayment, and possibly make it difficult to cover your other bills and living expenses, or save for emergencies. So our advice to single women buyers is always to be conservative in their estimates of what they can afford, and not to stretch their finances to the maximum. It is often better to start off by buying a smaller property and then add on to it at a later stage, or sell it and buy a bigger home once they are earning more.

"It is also a good idea to consult a reputable bond originator like BetterBond to establish the size of home loan they are likely to qualify for before they start looking at homes to buy."

Then when they do start viewing homes, says Kotzé, single women buyers also need to address the second major concern affecting them in particular, which is personal safety and security. "Ensuring home safety is obviously a priority for most homebuyers in SA, but unfortunately especially so for single women - which is no doubt why there is such a strong preference among such buyers for sectional title homes in estates or security complexes."

However, not everyone can afford to live in a complex, and perimeter security and access control may in any case not be enough to make many women feel safe, especially if they have children, so RealNet suggests the following basic important security measures to look for when viewing homes, or to put in place before they move in:    

*Strong locks. There should be high-quality deadbolts on all entry doors, burglar bars on all windows and security gates where necessary.

*Boundary wall or fence. This must be sturdy and preferably topped by electric fencing.

*Peephole or video doorbell. This will enable you to see who is at your front door before you open it.

*Alarm system. The basis of good security for most homeowners is a reliable home security system with an alarm, motion sensors and 24/7 monitoring.

*Outdoor lighting. Ensure that the exterior of the complex or individual home is well-lit at night. This includes pathways, driveways, entrances, passages and parking areas.

*Neighbourhood watch. If you are not buying into a complex with full-time security, find out if there is a neighbourhood watch group in the area and how you can get involved or at least support it financially.