top of page
Search

The Pros and Cons of Renting Versus Buying in South Africa


Everyone has the same two options when it comes to accommodation: rent or buy.


The vast majority of South Africans have been choosing the former. Only 35% of South Africans own homes.


There are pros and cons to both renting and buying.


For example, with renting:


Pros

  • No commitment

  • Landlord handles all repairs

  • No investment or large deposit


Cons

  • Your money goes down the drain. Paying rent every month is like throwing money away because you aren’t getting anything out of it except a temporary place to live.

  • Unpredictable payments. Rent is constantly going up with inflation, which typically causes increases of 4-10% per year.

  • Can’t customise or modify the property



And if you were to buy a home:


Pros

  • Freedom! When you own a house, you don’t need to follow anyone’s rules and can truly make a house a home.

  • Builds equity

  • Potential rental income

  • Saves money in the long run. Once your mortgage is paid off, you won’t need to worry about monthly payments- unlike with renting.

  • Stable payments. Unlike with renting, your monthly mortgage payments will always stay the same,


Cons

  • You’re responsible for home maintenance

  • Risk. There is always some level of risk involved when you purchase a property, which is why you need to make a smart and informed decision!

  • Possible down payment (although there are ways around this! Keep reading!)


While there is a long list of pros and cons for both renting and purchasing property, owning property has significantly more pros.


Deciding whether to rent or buy is a big decision. It’s understandable to be a bit apprehensive about the decision to buy- but there are a few things you should remember:


1. You don’t need to put down a huge deposit on a property to purchase. I built my multi-million rand real estate investment business without putting large sums of money down upfront. In fact, I’ve written an entire FREE ebook all about it!


2. Always do your research. Before making any big financial decision, it’s important to do thorough research. Take a look at my blog to see other articles all about real estate investment.


3. You don’t need to make this decision alone. I’m here to help! If you’re interested in purchasing a property and want guidance or mentorship, I offer 1:1 consultations.


4. You can learn more about purchasing property at our LIVE 2020 Vitual Real Estate Summit happening from 28 September!



From 28th September-1st October, I will be hosting a virtual summit on the digitalisation of real estate. The top 20 proptech companies in South Africa will be coming together to teach on how to digitise your real estate investments in the midst of a pandemic.


Our 50% off Early Bird discount is ending soon, so be sure to book your spot today for only R149!


This virtual event will be hosted every day from 9am-12pm. Spots will be limited so be sure to pre-book!