By Sanette Viljoen
To own property is generally a good and valuable investment. However, this is not always the best option for everyone. Some people’s working conditions require them to relocate a lot and therefore they cannot settle in one town for the long term. For these people it would be more advisable to rent.
Finances, working conditions and the size of your family will be factors to take into account when you have to make this choice.
In our current circumstances it is safe to say that we find ourselves in a good buyer’s market. Interest rates are very low and favour the buyer. Buying a home, however, is not that simple. Many costs are involved, which the buyer must be prepared to cover, e.g. bond registration costs, transfer dues, insurance premiums, property tax and even upgrading and maintenance costs.
It would also be advisable to keep in mind that interest rates could change and that you need to be financially stable to be able to handle these changes, together with all the other costs that accompany owning a property.
On the other hand, renting could be much cheaper, sometimes much less complicated and more flexible. With the paying of rental, however, you help the lessor pay off his bond, instead of paying off your own. If you rent a property, you are also tied to the lease agreement, which regulates what you may do with the property. You may therefore not demolish and build as you wish. You could also be given notice to vacate the property, of course subject to your lease agreement.
It is therefore clear that there are pros and cons on both sides. Factors to be taken into account: How long will you be staying in one place; How do costs compare between renting and buying; What will your future financial position be; How much space do you need for your family, pets and vehicles?
By answering the above questions, you should be able to get a good idea of what your best option would be.