Rent or buy?

TheOracle

TheOracle

Well-Known Member
Joined
Nov 5, 2010
Messages
278
Reaction score
313
Should you buy in South Africa, or would renting and investing the difference leave you better off?

I built a calculator which tries to answer this honestly. Anyone interested can have a look here:
southafricafacts.co.za

Rent vs Buy Calculator South Africa: Rent or Buy?

Should you rent or buy in South Africa? Compare a buyer against a renter who invests the difference, and find the break-even year for buying. Honest, with all the costs. No signup.
southafricafacts.co.za southafricafacts.co.za
 
What about factoring in salary growth and the option to pay off a bond faster? Since the bond amount stays the same, while rent increases, you could pay off your bond significantly faster.
 
Ϲhristopher said:
What about factoring in salary growth and the option to pay off a bond faster? Since the bond amount stays the same, while rent increases, you could pay off your bond significantly faster.
Click to expand...
And have something to show for it at the end...
 
Rent for now, too much going on in SA atm.

We could be heading for a Zim 2.0 in the next 2 years, our future is very uncertain.
 
I got rid of 3 rental properties in the last 2 years. And 1 industrial building sold.

Busy with the 4th one. The small access bond has already been cancelled. Signing with the conveyancers on Monday.
The 5th one I am putting in the market shortly.
Also selling an open stand.

After that, I will have zero properties in my name.

Just my residence and 2 holiday homes left. And they are all in the trust's name.
 
A lot in my life has changed in the last 4 years. And I don't want/need properties tying me up.
 
Mike Hoxbig said:
We've been heading for Zim 2.0 for 20 years now. Some even fled to Perth already, still hoping to validate their life choice...
Click to expand...
I know, 20 years is a long time to harbor resentment and regret for a life changing decision.

If you been living in a better environment for 20 years why would you think of something from all that time ago ?
 
W@P said:
I got rid of 3 rental properties in the last 2 years. And 1 industrial building sold.

Busy with the 4th one. The small access bond has already been cancelled. Signing with the conveyancers on Monday.
The 5th one I am putting in the market shortly.
Also selling an open stand.

After that, I will have zero properties in my name.

Just my residence and 2 holiday homes left. And they are all in the trust's name.
Click to expand...
What made you decide to offload?
 
To me it's quite simple.

If you can pay the home loan off and pay +20% of the required installment then you are golden and you can call it an investment as long as you stick to it for the entire term.

If you are just going to pay the home loan back for the 20 years the bank wants you to...or worse 30 years then you are never going to win out on the investment argument....but then other variables come into play like having your own space and doing with it as you please etc.

Renting has really never made any kind of sense to me, especially when my friends seem to be forced to move every 2-3 years and nobody seems to ever add all those costs properly into these rent vs buying calculations. It also goes far beyond just money.
 
SauRoNZA said:
To me it's quite simple.

If you can pay the home loan off and pay +20% of the required installment then you are golden and you can call it an investment as long as you stick to it for the entire term.

If you are just going to pay the home loan back for the 20 years the bank wants you to...or worse 30 years then you are never going to win out on the investment argument....but then other variables come into play like having your own space and doing with it as you please etc.

Renting has really never made any kind of sense to me, especially when my friends seem to be forced to move every 2-3 years and nobody seems to ever add all those costs properly into these rent vs buying calculations. It also goes far beyond just money.
Click to expand...
Plus the jump in rent when they move is substantial in most cases, oh you were paying 9k for a 4 bedroom nice, now you're paying 15k...
 
TStringList said:
What made you decide to offload?
Click to expand...
Just over it. The whole kak sleg etters tenant thing.
I decided to consolidate a bit. Not worth the effort and drama it caused for me. This is obviously not everyone's experience. This was just mine, and I don't need that shiit in my life anymore.

The industrial property was a mofo big-ticket item. Had an absolute kaaant of a tenant.
Luckily, his contract was up for renewal, and I decided, ok, 2 can play this game. GTFO, I am not renewing your lease; go look for another workshop and move your whole business somewhere else. LMFAO. :laugh: :laugh: :laugh: . All of a sudden he wanted to sit around a table and sort shiiit out. Get lost bru.
Rent was just short of R100k pm.

Then I got a few tire kickers who I know cannot afford the place that I sommer ignored.

And I got a buyer that a lot of the okes around me struggled to get, so I decided, fsck it.

yellowstone-yellowstone-tv.gif
 
TheOracle said:
Should you buy in South Africa, or would renting and investing the difference leave you better off?

I built a calculator which tries to answer this honestly. Anyone interested can have a look here:
southafricafacts.co.za

Rent vs Buy Calculator South Africa: Rent or Buy?

Should you rent or buy in South Africa? Compare a buyer against a renter who invests the difference, and find the break-even year for buying. Honest, with all the costs. No signup.
southafricafacts.co.za southafricafacts.co.za
Click to expand...
Neither - go back to europe
 
TheOracle said:
Should you buy in South Africa, or would renting and investing the difference leave you better off?

I built a calculator which tries to answer this honestly. Anyone interested can have a look here:
southafricafacts.co.za

Rent vs Buy Calculator South Africa: Rent or Buy?

Should you rent or buy in South Africa? Compare a buyer against a renter who invests the difference, and find the break-even year for buying. Honest, with all the costs. No signup.
southafricafacts.co.za southafricafacts.co.za
Click to expand...

I remember the New York Times did a very comprehensive tool to answer this, 15-20 years back now. Behind a paywall these days.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X