Property ownership is one of the best ways to create wealth and young South Africans should look to invest in property if they can afford it. So says Saul Geffen, managing director of mortgage originator, MortgageSA.

Geffen says that while many young people do buy property as soon as they can afford it, many see it as something that is too expensive or they are discouraged because they can?t afford the area they would like.

"Another barrier to young people buying is that they are intimidated by what they perceive as a complex process that they can?t understand.

"But I would encourage parents to speak to their children about their property experiences too. When they had to buy their first home they probably also felt prices were daunting but are now probably feeling very positive they bought as soon as they did.

"For example thirty years ago in Newlands in Cape Town and Rosebank in Johannesburg you could have bought a very comfortable home with a pool for around R50 000. Today those homes are selling for around R3m."

Geffen says that he would urge young people to first pre-qualify themselves before searching for a home. This will guide them to search for properties based on how much they can afford.

How to access the market
"Young people are often surprised by just how much they can afford. Property prices have escalated substantially, but there are ways to get into the market.

"We are seeing a trend towards friends buying properties together with their joint income. It does give people who may not be able to afford a property on their own a footing on the property ladder. Waiting until they can buy an investment property alone will probably prove costly ? property values are likely to continue to rise steadily.

Geffen says young people should also not avoid buying because they can?t live in their preferred areas.

"Younger buyers should remember that when an area becomes expensive people look to move close-by. Neighbourhoods improve in expanding circles around a good neighbourhood so that what is not ideal now, is likely to become a preferred suburb of tomorrow. Do research, ensure that the area has good fundamentals and in time it will improve."

Geffen says that with the advent of mortgage originators and new entrants in the South African banking market has made lending rates very competitive and lenders are eager to do business.

"Originators make it very easy for people to buy property ? they take all the hassle and complexity out of the process so no one need feel intimidated about the technicalities of buying property and financing it."