Latest news with #Bendall
IOL News
10-07-2025
- Business
- IOL News
South Africa faces a decline in homebuying activity amid economic challenges
If the US does implement the 30% tarrifs on all South African imports on August 1, homebuying activity in the country may ultimately slow down. Image: Sergio Souza/Pexels South Africa may see a dip in homebuying activity as consumers grapple with various economic challenges and rising household costs. Although the tariff increases do not directly target South Africa's residential property market, there will be some indirect implications as they will have an impact on economic slowdown, investor sentiment and inflation, says Bradd Bendall, the national head of sales at BetterBond. 'Tariff increases will affect major industries, such as the motor vehicle industry, which could hamper the country's economic growth. Job losses in these industries as a result of the tariffs will reduce consumer spending power,' Bendall said. He added that higher tariffs could also weaken the rand, making building materials more expensive. # "This could lead to much-needed new residential developments being delayed or becoming more expensive, he said. However, Bendall said every stock market decline in recent years has been followed by recovery and even a new growth phase. 'We saw this in 2020 with the pandemic, where governments responded with fiscal support and low interest rates, which resulted in an unexpected market rebound in subsequent months.' The industries that have already been flagged as being at significant risk if the United States(US) 30% import duties are implemented next month are notably automotive manufacturing, steel and aluminium, and agricultural products, says John Loos, the senior economist for Commercial Property Finance at FNB. He said should any of these sectors experience financial strain, the direct property risk would lie primarily with the manufacturing segment of industrial property and, to some extent, the logistics and warehousing component, particularly where export-dependent tenants may come under financial pressure. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ 'However, there is also a broader, indirect risk to the property sector stemming from the wider economic consequences of any export-related shock. Manufacturing is deeply interconnected with other sectors of the economy, which would also be affected to varying degrees. "For example, household financial stability is crucial for residential property demand, as well as for retail consumption, which underpins the health of shopping centres. "Therefore, if the large manufacturing sector were to experience significant job losses, this could reduce residential and retail purchasing power, impacting both the residential and retail property markets,' Loos said. In essence, the direct potential impact would be felt most in the manufacturing component of industrial property, and perhaps to a degree in warehousing, with broader indirect effects rippling through various segments of the property market due to the overall economic impact of such an export shock, he added. Furthermore, the senior economist said that while many agricultural products are produced on farms and fall outside of the urban commercial property market, any economic damage from disrupted agricultural exports could still indirectly affect urban property markets, especially in smaller centres whose local economies rely heavily on agriculture. Loos said export-focused tenants that are heavily dependent on the US demand may likely seek to diversify into other global markets to mitigate risk. Bendall said that while the US tariffs will have an effect on some local markets, South Africa has several key macroeconomic indicators pointing in the right direction that will help pave the way for sustained economic growth and more employment opportunities in the longer term. He said inflation is currently well within the 3-6% target range and there is no reason for the South African Reserve Bank(SARB) to hike the prime lending rate when it meets again at the end of this month. 'There is also talk of lowering the target band of the interest rate. Fortunately, the rand has remained firm, despite the announced intention to hike tariffs from the beginning of next month. 'The property market has repeatedly shown its resilience and remains an asset class that can offer reliable returns. BetterBond's June Property Brief reported a 4% year-on-year increase in home loan applications for the 12 months to May 2025. "This suggests that the property market is showing signs of growth amidst the geopolitical uncertainty that has marked the first half of 2025. As always, consumers are urged to budget wisely and avoid unnecessary debt during these uncertain times,' Bendall said. Loos said another potential consequence of an export shock is its impact on the broader economy and, by extension, government tax revenue. He said a reduction in revenue could widen the fiscal deficit, increasing the government's borrowing needs and putting upward pressure on bond yields. 'Since bond yields influence property capitalisation rates, this could result in upward pressure on cap rates and, consequently, downward pressure on property valuations,' Loos said. Tariffs continue to dominate the headlines, but US Fed minutes have added a twist, says Bianca Botes, Director at Citadel Global on Thursday morning. She said only a few officials backed a July interest rate cut, with most citing inflation risks tied to US President Donald Trump's tariff spree. 'Markets now expect cuts later this year, but not imminently,' Botes said. According to Botes, the rand is trading largely rangebound as markets wait to see the outcomes of tariff negotiations leading up to August 1. Independent Media Property
The Citizen
25-06-2025
- Business
- The Citizen
Flexible, tech-savvy and independent – SA's youth is shaping the property market
South Africa's youth may be entering the property market later than previous generations — but when they do, they're doing it on their own terms. From flexible co-living spaces to joint bonds with friends, Gen Z and Millennial buyers are challenging the old rules of homeownership, says Bradd Bendall, BetterBond's national head of sales. Recent data from BetterBond and Lightstone shows that buyers under 35 now account for nearly a third of all residential property transactions, with first-time buyers — 69% of whom are under 35 — dominating home loan approvals. 'Younger buyers are still very active in the home loan space, even if they're waiting a bit longer to make their first purchase,' says Bradd Bendall, BetterBond's National Head of Sales. 'They're approaching property investment with a more considered, flexible mindset.' Lightstone data shows that buyers aged 20 to 35 accounted for nearly a third of all residential property transactions in 2024, making them the second-largest buyer group after those aged 36 to 50. BetterBond data, meanwhile, reveals the average age of a first-time buyer is now 37, suggesting that many are choosing to wait until they are financially stable before stepping onto the property ladder. Yet they are still a force to be reckoned with: FNB reports that first-time buyers made up nearly 68% of all bond approvals in April 2024, with 69% of those falling within the 'youth' category. Gen Z: digital-first and flexible The younger cohort of this market — Gen Z buyers aged 20 to 28 — are especially tech-savvy and values-driven. They want homes that support smart technology, sustainability, and flexible living arrangements. 'These buyers are open to alternatives like micro-apartments for lock-up-and-go living, or co-living spaces with shared amenities,' explains Bendall. 'They're also more likely to apply for joint bonds with friends or family to increase affordability — and many qualify for 100% loans.' Gen Z prefers to manage their homebuying journey digitally — from affordability calculations to pre-approval and bond applications — often using BetterBond's online tools. Millennials: independent and investment – wise Millennials (aged 29 to 44) are taking a different path — but they're just as determined. 'We're seeing a strong trend among Millennial buyers, especially single black women under 40, who are choosing to buy property independently rather than wait for marriage,' says Bendall. This group is strategic: they're open to joint bond partnerships with friends, rentvesting (buying in affordable areas while renting where they want to live), and focusing on lifestyle over size. Many prefer smaller sectional title homes or apartments in mixed-use, security estates — especially in vibrant urban areas like Cape Town's CBD. As research from audience research company GWI shows, Millennials want to invest in their health and wellness, lifestyle is an important consideration when it comes to buying a home, says Bendall. 'The size of the property is less important than its location and access to amenities.' Bigger budgets, bigger ambitions Younger buyers are also spending more on property than they did last year. BetterBond's application data shows that Gen Z buyers are now spending an average of R1.5 million — up almost 7% and Millennials are averaging around R1.25 million on a home purchase. Part of this increase is due to rising home prices, but improved income levels and a more favourable interest rate outlook play a hand too. Importantly, the transfer duty threshold has been raised to R1.21 million, making property more accessible to this group of buyers. Market outlook The rise of younger buyers — especially in the first-time buyer segment — is a strong driver of home loan activity and an encouraging sign of renewed confidence in the housing market. Their demand for flexible, affordable, and digital-first solutions is reshaping how developers design homes and how estate agents manage transactions, adds Bendall. For example, developers are increasingly including co-living spaces, energy-efficient features, and remote working hubs in new builds, while estate agents are streamlining the buying process with virtual tours, online bond calculators, and digital application tools. 'Today's young buyers know what they want — and they're not afraid to rewrite the rules to get there,' says Bendall. 'That's good news for the future of the South African property market.' Issued by Lia Mundell
TimesLIVE
17-06-2025
- Business
- TimesLIVE
Is your house a stokvel? How Gen Z and Millennials remixed home ownership
There has been much said about what Millennials and Gen Z do with their money and time. Their spending habits have left many keeping track of what trends they influence and how they shift industries. While clothing and travel have been among the trends to watch, property ownership has entered the fray. National head of sales at BetterBond, Brad Bendall, said the two generations might enter the property market later, but younger buyers continue to 'drive activity in the home loan market'. He shared data that shows buyers between the ages of 20 and 35 accounted for almost a third of all residential property transactions in 2024, making it the second largest group after buyers in the 36 to 50 cohort. 'High prime lending rates and financial pressures have had an impact on younger buyers' market activity,' he said, adding a recent FNB report saw first-time buyers, of which 69% are classified as 'youth', accounted for almost 68% of all bond approvals in April this year. Here are five facts that show Millennials and Gen Z are shaking up the property industry. TECH SAVVY While the two generations have grown up in a tech-oriented world, Gen Z has led the charge in investing in homes that incorporate smart automation and energy efficiency. Bendall said Gen Z is more likely to conduct the process of buying a new home exclusively online. TEAMWORK MAKES THE NEW HOME WORK Gen Z buyers have driven trends that appreciate micro-apartments that allow for lock-and-go convenience. They've also been drawn to co-living arrangements where several people share a housing unit and communal facilities. Bendall said financial security is important for the group, as these buyers are likely to consider a joint bond with family members or friends to make home ownership possible. POWER OF INDEPENDENCE Between the ages of 29 and 44, Millennials are said to take the opposite route by investing into a property solo. Bendall said Millennials no longer consider traditional notions of being married first and then getting into home ownership. Instead, they 'assert their financial independence as single buyers'. Many of the buyers are black women under the age of 40, according to BetterBond's application data. STEPPING STONES While many Millennials are leaning towards buying their own property, Bendall said some work with friends, family or their partners to invest in a property they can use as a stepping stone towards their next home. 'This generation will also consider reinvesting, where they own a home in a more affordable area while renting in the area in which they want to live,' said Bendall. SIZE MATTERS With Millennials taking a strong interest in health and wellness, their lifestyles have become a huge factor when choosing a home. This does not prioritise location but rather stresses an importance for the size of the space. This is seen in Cape Town, where Millennials comprise a large part of the residential population. 'They compromise on the property's size to benefit from the vibrancy of city living and proximity to work,' said Bendall. This includes sectional title units in lifestyle estates and new developments.
IOL News
13-05-2025
- Business
- IOL News
Unlocking additional income: how your home can help during tough times
A brand new event hall, nestled within the Phoenix Children's Centre, is now available for public rentals, offering an exceptional venue for a variety of occasions and gatherings. Image: Picture: Supplied Homeowners can unlock additional income through their homes while staying compliant with local zoning and insurance requirements, noted a property expert. Bradd Bendall, national head of sales at BetterBond, said the house one calls a home can be so much more than the place where they live. 'A home can also be a source of additional income, especially during challenging financial times." "It is possible to use your home to bring in some extra money that you can use towards your bond repayments or to contribute towards household expenses,' Bendall stated. He noted that if one has a spare room or space on their property, they can consider getting a tenant. He added that this works well if the room or space has its own entrance so that both parties enjoy some privacy and freedom of movement. Where the property has a small cottage or flatlet, this would be an ideal option. Student accommodation is always in demand, so those who have a room or flat on their property and live close to a tertiary institution could derive reliable income during the academic year. Bendall noted that unused spaces like a garage or driveway on the property can be offered to neighbours who may need additional parking or whose properties may not have space for their cars. "In Clifton, where parking is a luxury, it was not unusual for parking bays of 16 square metres to sell for R2.5 million, he said. "An empty garage can also be rented as a storage space," added Bendall. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ A recent study on the economic impact of Airbnb in Cape Town found that 49% of hosts surveyed saw their Airbnb income as an 'economic lifeline' that helped them afford their homes. Half revealed that the additional income helped them keep up with the rising cost of living. With the launch of Airbnb Rooms, it is now possible to offer just one room in the home for short-term rental, if it meets certain criteria. These include a private bedroom with a door, access to a private or shared bathroom, and access to at least one common space such as a garden or kitchen. "Those hosting guests in their home for income must let their insurance company know so that they can be properly covered in case of theft or damage," advised Bendall. This means instituting hospitality risk insurance that will allow for hosting-related claims. He said that a home with distinctive architectural features or is set in a sought-after location, could be rented as a venue for events, weddings or even film shoots. "Historical homes are also sought after for films or magazine shoots. Do your research and register your home with a reputable location agent,' said Bendall. 'Before opening your home to film crews, be clear about which parts of your home will be used and the duration of the shoot so that you can minimise disruption. Having your home as a location can be a lucrative source of additional income.' Bendall said many people have shifted to remote working, and most homes have space for a home office. "You just need good internet connectivity or Wi-Fi, decent lighting, and a dedicated space to create a home office." He said having a solar system is also a good idea because this minimises the risk of disruption from load shedding and also saves on energy costs. Bendall said working from home or running a small business does not require special permission from the municipality. There are also tax benefits associated with using part of that home for business purposes. "So-called 'micro businesses' do not need special permissions to operate in a residential zone, he explained. These include small bed-and-breakfast establishments, hair or beauty salons, crèches or daycares with a limited number of children, and medical practices. Where one would like to open an independent or cottage school accommodating six or more children on their property, they may need to change the zoning to allow the property to be used as a place of instruction. With a few modifications, one's home can be used for a variety of activities or services. Home-based yoga studios or fitness centres are popular with those who prefer smaller group activities. "If a homeowner has a well-sized heated or indoor pool, they could offer swimming lessons. Always be mindful of the applicable zoning and land-use regulations," suggested Bendall. While within general residential zonings there are controlled opportunities for home businesses, larger business operations may require a consent use or temporary departure from the municipality. 'When deciding whether to run a business from home, consult with your local district planning office about the necessary permissions and zoning regulations. You will need to take factors such as parking and possible traffic congestion in a residential area into account,' he said. In June 2023, the Human Sciences Research Council (HSRC) published an article titled 'Small-scale rental housing: an impact story', by then senior research specialist in the HSRC's Equitable Education and Economies (EEE) division, Dr Andreas Scheba, and Professor Ivan Turok, also a distinguished research fellow in the HSRC's EEE division. The research revealed that the growth of small-scale rental housing-especially in South Africa's larger cities-offers enormous opportunities, despite its informal and, in many cases, unauthorised character. 'Small-scale rental housing addresses some of the country's biggest development challenges through delivering affordable rental accommodation, stimulating local economic development and employment, and promoting social transformation," the research revealed. "Homeowners, many of whom once received a government-subsidised house, and entrepreneurial micro-developers are investing millions of rand in constructing higher-quality rental flats in their backyards, or across entire properties." "This is taking place without any direct government support. In fact, until recently, all spheres of government have largely neglected this phenomenon, thus inadvertently contributing to its largely informal, unauthorised nature and associated drawbacks," it revealed. Independent Media Property
The Citizen
09-05-2025
- Business
- The Citizen
Six ways young professionals can get ahead in the property market
You're never too young to invest in property, says Bradd Bendall, BetterBond's national head of sales. 'For young professionals with a stable income, age really is just a number when it comes to getting ahead in the property game.' 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, Bendall recommends six ways young buyers can confidently enter the property market. 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 R1.2m, up almost 6% on the previous year. This reflects Lightstone's findings that buyers under the age of 35 are paying more for their homes than in 2018. Seven years ago, only 29% of these buyers were spending between R1m and R3m on a property. Now, this has increased to 36% of young buyers. 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, says Bendall. 'Paying half or a third of a bond can make investing in a property more accessible and appealing for a young professional.' However, he highlights the importance of setting up the appropriate agreements to ensure that 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,' adds Bendall. Keep below the threshold The transfer duty threshold increased by 10% to R1.21m from 1 April, meaning that buyers who apply for bonds of less than this amount will save on additional transfer duty costs, says Bendall. 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 R1.2m, up almost 6% on the previous year. 'With the new threshold, these buyers will save R3 300 in transfer duties if they buy for less than R1.21m.' 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, says Bendall. '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, explains Bendall. 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.' Once the bond is paid, 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, says Bendall. 'But if you do your research and buy in an area where there is a demand for the type of property you have, once renovated it can be resold 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, says Bendall. 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, he advises. 'Urbanisation is a significant factor driving homeownership currently,' says Bendall. '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,' says Bendall. 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. Bendall recommends applying 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 rate concession based on the buyer's risk profile. 'The current approval rate for clients who pre-approved with BetterBond first is 95% of all applications submitted to the banks on their behalf,' says Bendall. 'This high approval rate motivates young buyers hoping to enter the property market as their professional careers gain momentum.' Issued by: Lia Mundell
