Side hustle to homeowner – gig workers make their mark on SA’s property market
An estimated 2.4 million South Africans now earn their living through self-employment, according to StatsSA – and this growing wave of gig workers is fast becoming a discernible force in the property market.
08/09/2025
Although variable
income has traditionally been seen as a barrier
to homeownership, Bradd Bendall, BetterBond’s
National Head of Sales, says the bond
application process is becoming more accessible
for this burgeoning group. “In fact, many
lenders and banks recognise that self-employed
applicants are entrepreneurs with a proven track
record of running a successful business, and
they are therefore often seen as a lower lending
risk. In an evolving property landscape, the
rise of freelancers and the gig economy is
reshaping traditional notions of income
stability and bond qualification,” he explains.
South Africa’s unemployment rate reached
33.2% in the second quarter of the year,
according to StatsSA’s latest Quarterly Labour
Force Survey. This, coupled with the
post-pandemic shift to remote work, has driven
many South Africans into flexible and
contract-based employment, either by choice or
necessity, says Bendall.
Bendall says
freelancers can improve their chances of
approval by consulting a bond originator if they
are thinking of investing in property. “By
working with a bond originator who can advise on
how to qualify for a bond without a fixed
income, and apply to multiple banks on their
behalf, a freelancer stands a much better chance
of securing a home loan,” he says. “The
applicant does one set of paperwork, and the
bond originator ensures that all the required
information is ready for submission to make the
application process smoother – and there’s no
charge to the homebuyer.”
Typically,
banks may offer self-employed applicants around
an 80% bond, but Bendall notes that this is
becoming more flexible. “It is becoming somewhat
easier to secure a little higher, depending on
the applicant’s individual risk profile,” he
says. While self-employed applicants may need to
work harder than those in formal employment to
demonstrate affordability, Bendall believes
homeownership is still well within their reach.
“By preparing properly, gig workers and
freelancers can also be proud homeowners. Being
your own boss should not preclude you from being
able to own your own home.”
Top tips for self-employed homebuyers:
1. Make sure
your tax and financial statements are up to
date.
2. Keep an eye on your credit record.
Avoid unnecessary debt.
3. If possible,
separate your personal and business income and
expenses. Banks will assess your affordability
and separate statements will make it easier to
assess your financial status. Note that
affordability is assessed primarily on your
drawings or income taken from the business, not
the overall turnover or profit of your business.
4. Save as much as possible for a deposit. This
shows banks that you are a lower lending risk
and improves your chances of being offered a
competitive interest rate.
5. Complete a
bond pre-approval so that you know how much you
can afford before you find your dream home. This
process includes a quick credit check that gives
a good indication of your credit score and
whether you need to look at ways to improve it
before applying for a bond.
When applying for a bond, freelancers will need the following:
1. The last two years’ sets of
financials. If your financials are older than
six months, you’ll need up-to-date signed
management accounts.
2. An auditor’s letter
confirming your income and expenses paid for by
the business.
3. A signed personal statement
of assets and liabilities, and personal income
versus expenses.
4. Personal and business
bank statements for the last three months.
5.
The most recent IT34 from SARS.
As gig
workers and freelancers tend to work on
short-term contracts, they are inclined to be
more mobile and flexible, says Bendall. Property
preferences include sectional title units or
micro-apartments that meet their basic needs.
High-speed internet connectivity, office space
and access to communal lifestyle amenities may
be high on their priority list when considering
accommodation options. Although many of these
workers will opt for short-term rental
accommodation, those that do invest in property
may combine their financial resources with a
friend or partner to apply for a joint bond.
“Fortunately, with more people opting for
the flexibility and independence of contract
work, there has also been a shift in how banks
and bond originators assess affordability,
allowing these buyers to become an increasingly
influential force in the housing market. Being
self-employed is no longer a barrier to
homeownership,” concludes Bendall.