The 'Second Home First' Strategy

💡 The 'Second Home First' Strategy: How South Africans Are Rewriting the Path to Property Ownership
Inspired by an Entrepreneur article by Katie Cline (Jul 2025)

Owning your first home is meant to be a milestone — a proud moment of independence and investment. But if you’ve tried to buy in Cape Town, Joburg, or Durban lately, you’ve probably felt the same frustration as many other South Africans: high prices, rising rates and taxes, limited stock, and a rental market that often makes more financial sense than buying.

So, what if we’ve been looking at this the wrong way? What if, instead of stretching to buy where we live, we took a page from a growing global trend — and bought where we can afford first?

Welcome to the 'Second Home First' strategy — where your first step into property isn't a primary residence, but a well-located lifestyle- or rental investment property that works harder for your wallet.

🚧 Primary Homes Are Pricey — and That’s Not Changing Soon

According to Lightstone, the average freehold home in Cape Town costs over R2 million, with sectional title units in popular suburbs pushing R35,000/m². That makes a R1.5 million bond feel like the minimum bar for entry — often requiring R150,000+ in upfront costs before you even step foot inside.

Meanwhile, median household incomes haven’t kept pace. And like in the U.S., data shows that in many South African metros, renting is currently cheaper than owning, especially when factoring in levies, rates, and maintenance.

🏖️ The Coastal or Country Escape That Pays for Itself

Enter towns like Hermanus, Clarens, Langebaan, Hartenbos or the Garden Route — where prices are still accessible and the short-term rental market is booming thanks to both tourism and remote work.

Instead of waiting to afford a city apartment, some young professionals are buying in these locations first:

• Using them as weekend homes or remote work escapes

• Listing them on Airbnb or LekkeSlaap during peak season

• Generating income while building equity and tax-deductible expenses

In many cases, a second home bought for under R1.3 million, financed with just a 10% deposit, can break even on 60–90 nights of short-term letting a year — especially in well-managed coastal markets.

🔁 Renting Where You Work, Owning Where You Relax

This strategy flips the script: rent your city pad where prices are high and flexibility is key, while owning a second home where capital values are growing, operating costs are lower, and tourism supports demand.

You won’t just enjoy a few "free" holidays each year — you’ll:

• Build wealth through appreciation

• Create a passive income stream

• Learn valuable property management and entrepreneurial skills

👩🏽‍💻 Property as a Side Hustle

Much like the original author Katie Cline shared about managing her Lake George chalet, local second-home owners often find themselves developing marketing savvy, hospitality know-how, and a nose for pricing. It’s not just property investing — it’s a gateway to a side hustle.

In fact, some have gone on to acquire multiple short-term rental properties, turning a weekend escape into a scalable business model — especially when paired with SA’s favourable tourism tax laws and the demand for local, affordable accommodation.

Final Thought: The Dream Isn’t Dead. It’s Just Different.

South African homeownership is evolving. The traditional path of "buy where you live" isn’t always realistic — and that’s okay.

So maybe your first home isn’t in Sea Point or Sandton. Maybe it’s a two-bed in Sedgefield, rented out half the year and enjoyed by your family the rest. It’s not a compromise — it’s a strategy.