Buying vs renting in South Africa

[Kirsten Minnaar]

Buying vs renting in South Africa

A property expert shared whether buying or renting offers better value for South Africans.

 

[Jan van Riebeeckstad]

What is the experts credentials?

 

[FiestaST]

No "the winner is clear" bud/bot?

 

[Bad Ballie]

Until EWC is put to bed for good, I will rent thanks anyway. This country is not an investment, it's a liability.

 

[Wut]

Until EWC is put to bed for good, I will rent thanks anyway. This country is not an investment, it's a liability.

Says anyone who can't afford to own

 

[Bad Ballie]

Says anyone who can't afford to own

Keep telling yourself that.

 

[EmmanuelGoldstein]

Says anyone who can't afford to own

And so what about it? Do you look outside often, touch grass at all?
No matter how hard some of us work, it's not going to happen. And there's no better jobs out there, been looking for years now.

 

[Smiggles]

Own thanks. The less people you depend on the happier you'll be.

 

[Operator]

Own is the way to go. Doesn't matter what these "clever" people say

Owner:
After 20 years of paying a bond, the homeowner have an asset that has grown in
value over time and is still valuable.
No further monthly payments

Tenant:
After the 5th year of renting, the monthly rental payment was the same as
the guy that is paying his bond. Thereafter the rent is more than the cost
of the bond
After twenty years, the tennant sit with nothing and just keeps on paying
rent that escalates every year

 

[rterblanche]

And the thing that always gets me with all the comparisons is that they say you must invest the money you aren't paying on the bond. But how many people does that and like as said after 5 years the rent is more than the bond repayment. Then you aren't saving anything extra anymore.

Investing on second property might be a different story but on primary residence buy is always better.