New property trend emerging in South Africa

Properties are overpriced. Estate agents are scum the earth. Get rid of them and it will be easier for people to buy, sell or rent.

The whole rent vs buy argument is dumb as well. Many have bought and regret it due to believing the lies from the agent who have moved on to the next lucrative oily deal.

The only reason renting is such a pain is because of slithery sneaky useless agents.
 
By using the BetterBonds Bond repayment calculator and a national average purchase price of R1,422,922, he found that monthly repayments on a loan of that size is R14,447 (calculated at an interest rate of prime and a 20-year term).

“This figure is not astronomical but is still higher than that of PayProp’s national average rent – now at R8,023 – effectively disproving the ‘cheaper to buy’ theory,” said Smee.
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Oh dear... Another example of very very poor financial analysis passed off as expertise.
 
RedViking said:
Properties are overpriced. Estate agents are scum the earth. Get rid of them and it will be easier for people to buy, sell or rent.

The whole rent vs buy argument is dumb as well. Many have bought and regret it due to believing the lies from the agent who have moved on to the next lucrative oily deal.

The only reason renting is such a pain is because of slithery sneaky useless agents.
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Not gonna lie but this is something that kept e from buying another property. What exactly is the purpose of a estate agent?
 
Moosedrool said:
What exactly is the purpose of a estate agent?
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To face prospective buyers and sell your property at a commission. Most people dread this prospect. Dealing with humans seems to be an issue. Or too much money to splurge on agents. Or too lazy to do work by own. Or flat/house is too far from own house to bother. Or fear of getting robbed/conned.

Possibly a combination of factors.
 
SauRoNZA said:
Yeah completely misses the point of price increases over time and retaining an asset at the end of the loan term.
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This assumption also ignores risk entirely. It's much less risky to pay a fixed price to lease an asset than it is to own said asset.

Also, let's say your max affordability for a property is 1.5mil. Bond repayments would be around 15k and renting would be around 8k. Bond excludes rates, taxes and maintenance. There's a large difference between the two while lifestyle is relatively the same.

It's very easy to say property is a good investment. Unfortunately we no longer live in the 70s where stability was almost a given. The dynamics of life, especially in SA have changed. It may absolutely make sense to rent and invest the difference while the situation is as it is.
 
SauRoNZA said:
Yeah completely misses the point of price increases over time and retaining an asset at the end of the loan term.
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Yes exactly. Like you pay that rent for 20 years and don't own a house at the end... Also that rental properties on average are flats, whereas bought are likely to be bigger!

The saddest thing is it wouldn't be hard to do it properly... E.g. find how much the average bought house rents for... Or run the numbers after levies etc... It's not hard to do, but "experts" in real estate and numerically weak it seems.
 
richjdavies said:
Yes exactly. Like you pay that rent for 20 years and don't own a house at the end...
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You're very much assuming a 20 year investment horizon. This absolutely may not be the case for all. Again, alluding to individual and specific circumstances but also the uncertainty in SA itself.

richjdavies said:
Also that rental properties on average are flats, whereas bought are likely to be bigger!
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This assumption really has no basis.
 
Harmonic said:
You're very much assuming a 20 year investment horizon. This absolutely may not be the case for all.


This assumption also heavily depends on area.
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Well yes... He's just taken the national average.

Crazy.
 
Harmonic said:
This assumption also ignores risk entirely. It's much less risky to pay a fixed price to lease an asset than it is to own said asset.
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But it’s not really a fixed price. Owning it is far more predictable than renting it.

Not to mention the costs of constantly moving if you need to.

Also, let's say your max affordability for a property is 1.5mil. Bond repayments would be around 15k and renting would be around 8k. Bond excludes rates, taxes and maintenance. There's a large difference between the two while lifestyle is relatively the same.
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Absolutely. Lifestyle can be quite different though when it comes to your own property and doing what you want to when you want to.

It's very easy to say property is a good investment. Unfortunately we no longer live in the 70s where stability was almost a given. The dynamics of life, especially in SA have changed. It may absolutely make sense to rent and invest the difference while the situation is as it is.
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Absolutely. A bond only makes sense as an investment if you are overpaying it by a good margin and wrapping it up early. Paying the bank for 20 years is probably going to break even to just renting…but at least you own it in the end.

I think the entire argument revolves around people who can afford it, but choose to rent instead rather than the populace as a whole.
 
RedViking said:
Properties are overpriced. Estate agents are scum the earth. Get rid of them and it will be easier for people to buy, sell or rent.

The whole rent vs buy argument is dumb as well. Many have bought and regret it due to believing the lies from the agent who have moved on to the next lucrative oily deal.

The only reason renting is such a pain is because of slithery sneaky useless agents.
Click to expand...

Lol, now let me give you a good fact. Agents may be bad, but ask someone to give 3 months bank statements, an ID, a salary slip (and that is way to much admin for them).

Another good example, do you know what you qualify now for? As in to buy?

Heard someone bought a place, he is now upset he must pay rates and taxes.

Agents are there to guide you. And possibly to teach you if you dont know zip!
 
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