Buying vs renting in South Africa – the winner is clear

[Kirsten Minnaar]

Buying vs renting in South Africa – the winner is clear

Property experts calculated whether South Africans would be better off buying or renting a home with a R15,000 monthly budget.

 

[Brian_G]

As rental costs continue to rise across many parts of South Africa, an increasing number of tenants are reconsidering whether their budgets would be better spent on buying a home, rather than renting.

 

[Bad Ballie]

While true the reality still remains that EWC is still a threat, so yes buying a car is better than renting one, but property is still high risk, especially when you consider that Bank policy has already shifted to ensure that you as the purchaser remain liable for the Bond even in the event that the property has been expropriated by the state.

 

[Jet-Fighter7700]

While true the reality still remains that EWC is still a threat, so yes buying a car is better than renting one, but property is still high risk, especially when you consider that Bank policy has already shifted to ensure that you as the purchaser remain liable for the Bond even in the event that the property has been expropriated by the state.

something I didnt know about, even if they take your land you still pay?
how exactly do they plan to enforce that? Id claim force majeure and never pay a cent

 

[Sinbad]

something I didnt know about, even if they take your land you still pay?
how exactly do they plan to enforce that? Id claim force majeure and never pay a cent

The easiest way to resolve this is to create expropriation insurance - you pay a once-off premium when you take out the bond. If the house is expropriated, the insurance settles the outstanding balance.

 

[Bad Ballie]

something I didnt know about, even if they take your land you still pay?
how exactly do they plan to enforce that? Id claim force majeure and never pay a cent

"Property owners with mortgages and other bonds on property that may be expropriated at below market value or without compensation face severe liabilities. Borrowers will still be liable for the full debt on a property, even if the underlying asset has been expropriated at below market value or without compensation. This is because loan agreements with banks are secured by mortgages over the property. These loan agreements remain valid and binding irrespective of the value realized for the property used as security in support of the loan." - The Banking Association of South Africa.

 

[die_koos]

I hate when they generalise a complex argument this. The equation can change significantly depending on where you want to live and what your budget is. The headline here should have been

Buying vs renting in some parts of Roodepoort with a budget of R 15k pm – the winner is clear​

 

[Forum Reader]

Someone buying a R1.2mill place is not currently renting a place for R15k a month. Their equivalent rent is probably in the R5k-R8k region.

 

[Magnum]

While true the reality still remains that EWC is still a threat, so yes buying a car is better than renting one, but property is still high risk, especially when you consider that Bank policy has already shifted to ensure that you as the purchaser remain liable for the Bond even in the event that the property has been expropriated by the state.

Best of both... Buy an RV.....

 

[Magnum]

I hate when they generalise a complex argument this. The equation can change significantly depending on where you want to live and what your budget is. The headline here should have been

Buying vs renting in some parts of Roodepoort with a budget of R 15k pm – the winner is clear​

Yeah... Get out of Roodepoort....