Buying your first home is one of life's biggest milestones, and in South Africa, conditions are making it more achievable than ever. "With interest rates softening, salaries improving, and the transfer duty exemption threshold rising by 10% (saving buyers up to R3,300), South Africa's first-time buyers are making confident moves onto the property ladder," says Mark Pettipher at Rode Publications & Media.
In this climate, starter homes are gaining popularity, not just as a stepping stone, but as smart financial investments. Whether it's a compact townhouse or a lock-up-and-go apartment, more future homeowners are seeing the long-term value in securing an affordable first property that meets their needs now and supports their goals for the future.
What are starter homes?
Starter homes are typically affordable, entry-level properties ranging in size from around 70m² to 116m². They come with a significantly lower price tag compared to larger or more luxurious properties, making them an attractive option for first-time buyers looking to enter the property market. In terms of pricing, a starter home in Nelspruit (Mbombela), for example, can be priced from R500,000 for a one-bedroom apartment.
These homes usually include the basics like a bedroom, kitchen, and lounge, and are located in neighbourhoods where residents tend to share similar income brackets. Designed to meet essential lifestyle needs, starter homes often offer proximity to schools, shops, healthcare facilities, and public transport. Many are also low-maintenance, which adds to their appeal for individuals or young families starting out.
Traditionally, starter homes were bought with the intention of staying for about five years before upsizing to a forever home. However, there's been a noticeable shift in this trend. Today's buyers are becoming more space-savvy, choosing to maximise their existing space with smart layouts and multi-functional areas. Many now view their starter homes as longer-term investments - properties they can build equity in, resell for a profit, or even rent out down the line to generate passive income.
Tips for buying a starter home
With some smart planning, you can make a confident choice now and set yourself up for success down the road, whether you plan to live in the property for a few years or turn it into a long-term investment.
- Get pre-approved before you shop: A mortgage preapproval shows sellers you're serious and gives you a clear view of what you can afford.
- Team up with a savvy local practitioner: A knowledgeable property practitioner can guide you through the process and help you spot hidden gems that match your budget and goals.
- Widen your search radius: If prices are steep in your dream neighbourhood, explore nearby areas where you might find better value just around the corner.
- Be flexible with your must-haves: Focus on what really matters now, and be open to trade-offs on space, location, or finishes.
- Think beyond today: Look for a home in an area with good rental potential, like near schools, shops or public transport, for future income opportunities.
- Know your timeframe: If you plan to stay five years or longer, ensure the space will grow with your lifestyle and possible family changes.
- Pick a low-maintenance property: Starter homes should be easy to care for - skip high-maintenance features that could cost time and money.
- Take your time: If nothing feels right, step back and keep saving. The right home will come eventually, and you'll be in a stronger position.
Tips for thriving in your starter home
Once you've bought your starter home, it's worth thinking long-term. Any updates you make should enhance your lifestyle but also add value for when it's time to sell or rent out. Here are a few ways to make it happen:
- Make your area even better: While you can't pick up your house and move it, you can help improve the appeal of your neighbourhood. Join or start local clean-up initiatives, support your area's school by joining the PTA, or get involved with the Community Policing Forum (CPF) to improve safety, all of which can increase desirability down the line.
- Consult a practitioner before renovating: A property professional can offer key insights into which renovations will actually add value in your specific area. Understanding your neighbourhood's buyer or renter profile can help you make upgrades that attract them, not turn them away.
- Refresh rooms with paint: A simple repaint in soft, modern tones can do wonders for making your home look clean, updated and move-in ready. Paint goes on special regularly, so this can also be a cost-effective win.
- Don't neglect the outdoor space: A well-kept garden or tidy outdoor area boosts curb appeal and creates a safer environment. Trimming overgrown trees and bushes can also let in more natural light and make small yards feel larger.
- Add extra storage where possible: From floating shelves to built-in cupboards, clever storage adds instant value. It's also one of the most sought-after features among both buyers and renters.
- Prioritise home security: Safety is a top concern for South African buyers. If your home isn't already equipped, consider investing in electric fencing, an alarm system, and an automated gate. Not only will you sleep easier, but it'll pay off when it's time to sell.
- Lower your household bills: Rising electricity costs make energy efficiency a major selling point. Install LED bulbs, upgrade to energy-saving appliances, and consider solar panels if possible.
Make your first move count
Buying your first home is as much about smart decisions as it is about new beginnings. From choosing the right location to making upgrades that boost long-term value, a starter home can set the stage for both personal and financial growth. That's where Kellaprince Properties can step in. Our friendly, experienced practitioners are here to guide you through buying, selling, or renting out your starter home. View our starter homes for sale or get in touch for our other property services.