Rent or buy?

[Lager]

Probably not.

I've calculated I've put around R120 000 of my own money into the property over the 7 and half years (revamped kitchen and new tiles on the bottom floor, special levies and when it didn't pay for itself and whatever else), the rest was tenants money.

If I sell now I'd pocket about R600 000 (after the outstanding bond balance is settled), having out in about R120 000.

Not bad. I also had to revamp a rental prop recently. It's sometimes more necessary than one would think...you get tenants easier for example if your place looks neat. Not news to you though
Anyway, you could probably refinance on that type of equity and buy another place...if you wanted to of course

 

[biometrics]

I hate having a landlord so buying is the only option.

 

[SauRoNZA]

In a favourable economic climate buying is better. Interest rates are lower/stable and capital gains on your property beat inflation. However during the downturn you are better off renting as your lease increase is guaranteed to be an annual occurance. Interest rates on the other hand can increase repeatedly in a single year resulting in you having to sell at below market value because you no longer can afford.

If you can no longer afford it then you overextended and it was bad planning on your part.

Not the market's fault.

Same way most people fall in the 30% of their income 20 year trap..."because it's an investment" which it is not if bought like that.

 

[SauRoNZA]

People renting also forget the cost of moving and the pain in the ass that it is.

 

[supersunbird]

Not bad. I also had to revamp a rental prop recently. It's sometimes more necessary than one would think...you get tenants easier for example if your place looks neat. Not news to you though
Anyway, you could probably refinance on that type of equity and buy another place...if you wanted to of course

Do not want to buy another place... I'd refinance half (if it was at prime or less) and invest in listed property/shares.