South Africans share property ladder lessons: sacrifice, strategy, stubborn optimism

A few weeks ago, I wrote about property in the Money Cents newsletter, and the emotional and financial reality of trying to get on – or move up – the property ladder. Then I asked you, dear readers, to send me your own stories and lessons from the trenches.

My inbox turned into a mini deeds office of lived experience. No spreadsheets. No glossy brochures. Just grit, sacrifice, timing and stubborn optimism.

Here are three stories that stayed with me – and the money lessons hiding in them.

The ‘koophuis’ dream that took sacrifice

Lorraine grew up in a township in the Western Cape and says owning a house – having a koophuis – felt completely out of reach.

She married at 20 and had three children in quick succession, including twins. Property ownership simply wasn’t part of the early plan. Then she and her husband heard about Garden Cities and government support for first-time buyers, including a five-year 33% subsidy at the time.

They bought their home in 1985 for R39,000. Lorraine describes it as a “truckload of money” – especially since they didn’t even have enough for a deposit.

What they did have was clarity: this was an investment in stability and a long game for their family. It required sacrifice and tight budgeting, but they made it work.

Forty-one years later, she still lives there. The children – and now grandchildren – still come home to the same address.

Money Cents takeaway: The first home is rarely comfortable at the start. It becomes comfortable because you stay.

The one-bedroom flat nobody wanted – until everyone did

John’s story is a reminder that today’s “unpopular” property type can become tomorrow’s hot seller. In 1980, after years of travelling abroad, he asked a property sales manager what a one-bedroom flat in Marble Arch in Berea, Durban, would sell for.

The answer: R20,000 – but with a warning that South Africans wouldn’t buy one-bedroom units. John disagreed. He had seen entire families living in one-bedroom apartments overseas and believed the local market would shift.

An investor bought the building and sold the one-bedroom flats for R30,000 each within a week. John bought one – with access to a pool, tennis court and city views.

Money Cents takeaway: Property markets have blind spots. If demographics and lifestyles are changing, small units and “unfashionable” formats can turn into smart buys.

The extreme frugality rental strategy

David bought his first house in Harrismith in November 1992 for R115,000 when he was 27. His salary was less than R3,000 per month. He only qualified for the bond because he came prepared:

• 10% deposit and transfer costs saved;
• Clear rental plan for the main house;
• No other debt; and
• A strong credit record.

The bond rate was about 14.75% – and climbed to roughly 25% by 1998. That kind of interest rate would make today’s buyers faint into their oat milk cappuccinos.

His strategy was unusual but powerful: rent out the main house and live in converted outbuildings. He repeated this model three times with different properties and only moved his family into a main house in 2013. From 1992 to 2003, spare cash went into buying additional rental properties. Lifestyle spending was aggressively contained:

• No gym memberships;
• No pay-TV;
• No top-end gadgets;
• No fancy cars; and
• No luxury holidays.

Money Cents takeaway: Property investing is often funded by lifestyle choices no one sees – and many people wouldn’t choose.

What these stories have in common

These were three different stories from readers who have no connection to one another, but there are common lessons:

• Buy with a plan, not a fantasy;
• Treat the first purchase as getting a foothold in the property market;
• Use rent strategically where possible;
• Ensure you maintain a good credit record;
• Accept short-term discomfort for long-term stability; and
• Don’t wait for “perfect conditions” – they rarely arrive. DM

This story first appeared in our weekly DM168 newspaper, available countrywide for R35.