The First Three Years Advantage

C02

In 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.

GSX:HH-002:C02 · Modelled · Conditional · high sensitivity · Version 1.0

Depends on

A01Representative workerThe central case is a 22-year-old worker in Johannesburg, expressed in constant 2026 rand.high sensitivity

A02Middle starting salaryThe central worker earns R420,000 a year before tax. The manuscript also reports a lower case of R240,000 and a higher case of R720,000. These are illustrative starting salaries, not national percentiles.high sensitivity

A03Johannesburg housing bundleIndependent housing in the Johannesburg scenario costs R9,600 a month in rent and R7,200 a month in other housing basics. The manuscript treats these as transparent city scenarios, not estimated city means.high sensitivity

A04Contribution while living at homeWhile living in the family home, the worker contributes 12% of take-home pay, bounded between R2,500 and R6,000 a month, plus R1,200 of personal food and services. The manuscript counts this transfer as a private cost.high sensitivity

A05Financed used carThe car is a R230,000 used vehicle with a 10% deposit and 60-month finance at 11.5%, plus insurance, parking, fuel, maintenance, and depreciation as specified in the manuscript.moderate sensitivity

A06Hybrid transport while the car is delayedDelaying the car uses a public-transport and ride-hailing mix. In the central case the worker travels about 640 kilometres a month.high sensitivity

Modelled results cited

R05Middle salary, Johannesburg, housing delay versus car delayStaying at home for three years while buying the car immediately creates R486,000 more modelled capital by age 25. Moving out immediately while delaying the car creates R128,000.modelled

Registered supporting sources

The First Three Years Advantage · GSX:HH-002:PDF