Whatshot
Should you continue to rent or invest in a property
Should you continue to rent or invest in a property
Date: 2018-08-24
A question, which often arises is 'should I rent or should I buy ' This is obviously a very broad and potentially multifaceted question, but factors that influence this decision can often include the individual's personal financial circumstances - in other words, individuals decide to rent because they cannot afford to buy.
In addition, there may be other personal influencers such as employment status and prospects, family composition, lifestyle preferences, hobbies and activities that play a role.
Within South Africa, there is a strong culture of owning and the desire to own one's own home both from an investment as well as a lifestyle perspective, and so this continues to be the dominant trend. However, in recent years the rental market has benefitted from the ever increasing number of people who are unable to buy homes for whatever reason, and this market remains very active, further fuelled by a younger generation of singles, couples and families who are financially not yet able to position or raise sufficient finance - to purchase their first home.
Advantages of renting: From a tenant's perspective there are various reasons why one may choose to rent as opposed to buy, and not related only to affordability.
In the current market: It is very important to make sure that you do proper research on an area before committing to renting or buying.
Finally: Make sure that you do not overextend yourself when making a property decision. The rental on a property will increase annually, and if you need to rent for an extended period, it may mean that you will have to move every year. In the instance of a bond, the interest rate may increase, or the rates and taxes, insurances and other associated costs with owning a home.