An age-old debate topic that never seems to have clear outcome is, do you rent a property or do you just buy it outright? There are many arguments for and against the quandary. However, the one thing that matters is the perspective you use to look at this question.
Between 2004 and 2007, property purchases were on the rise in South Africa. As many as 30 to 40 thousand properties were changing hands monthly. Today, that number is down to less than half of that figure. The reason is not the boom or bust of the property market – it is the ability of South Africans to pay off their debts. With almost 48% of debt-ridden South Africans struggling to meet their next monthly repayment, house sales are at an all-time low … while rentals are rising through the roof.
Renting Vs Buying A Property – The Key Points
As you sift through the rental properties listed online, you quickly realise the biggest advantage of renting a home versus buying it – no long-term debt! Without the burden of having to pay off the loan associated with your property, all you need to do is choose a property based on the monthly rental you can afford … if you can find one! Rental stock is really low in many areas and you may end up having to commute a distance to work and schools.
If you think that paying the rent each month is the same as making a home-loan payment, then think again! You have the flexibility to change your monthly rental for your accommodation, while home-owners don’t have that luxury. Renting a property has additional benefits, including that maintenance costs are not your responsibility.
Online Estate Agents Make The Decision Easier
But let’s look at the other side of the coin. A certain amount of prestige and security comes from owning a home. Giving your family roots and a place to grow is very important. Putting your hard-earned cash into an asset instead of paying off someone else’s bond also makes sense.
There is a problem, however as the National Treasury has found that average financial savings in the South African household have gone down from 6.6% of the monthly income, to a negative amount. In other words, South Africans are spending more than they are earning. It all comes down to financial discipline. Do you have it? Are you disciplined enough to service your homeloan?
At an online estate agency, like Homefair, you will get all the help you need to buying a property that matches your budget. This will give you the flexibility to carefully plan your financial future. Contact your online estate agent to explore the pros and cons of buying your own property. Check the property listings on Homefair and make the right decision – rent or buy?