The First Three Years Advantage

A03

Johannesburg housing bundle

GSX:HH-002:A03 · Model assumption · Version 1.0

Connected conditional claims

C01GSX:HH-002:C01In the central middle-salary Johannesburg scenario, living in the family home and delaying a car purchase for three years creates R602,000 more modelled net capital at age 25, and R3.32 million more modelled wealth at age 60, than moving out and financing a car immediately. The age-60 figure holds when the gap is preserved on the manuscript's common post-25 path.high sensitivity

C02GSX:HH-002:C02In the central case, staying at home for three years while buying the car immediately accounts for R486,000 of extra modelled capital at age 25, while moving out immediately and delaying the car accounts for R128,000. The housing decision is the larger of the two.high sensitivity

C03GSX:HH-002:C03The modelled advantage of three years in the family home disappears when the household contribution reaches roughly R15,900 a month in the middle-income Johannesburg case.high sensitivity