Renting vs buying property pros and cons, and how to move from renting to buying
Driven by record-low interest rates, many tenants, having made the calculation, are deciding to own – not rent - the home they live in.
Anecdotes suggest that once free-living and travelling Millennials are reconsidering their priorities and diving into the security of owning property.
Do consider the pros and cons of renting versus buying the home you live in, says property investor Grant Smee.
If you decide to buy, spend at least three to six months investigating the market before putting in an offer to purchase.
Some pros of renting (for more detail, tune in at 10:30 am on Thursday)
It’s flexible. If you’re not sure where you want to be in the long-term, or if you’re unsure about your income or job, then renting is probably best.
Renters are not responsible for maintenance.
Some of the cons of renting
Paying rent is an expense. You are not investing, and you will not make any returns.
You are bound by the landlord’s rules.
Some of the pros of buying
You own an asset that can appreciate in value and earn a return.
You can renovate and decorate as you please.
You can earn rental income.
You can put savings in your home loan.
Some of the cons of buying
There are loads of hidden costs such as transfer and attorney fees.
You’re less mobile – if you need to move, it may take many months to sell.
Returns are not guaranteed. Property values can and do sometimes fall.
Smee offers the following tips on going from being a renter to an owner of property (for more detail, tune in at 10:30 am on Thursday):
Get a pre-approval.
Deposits: Build up a buffer.
Join forces if you struggle with affordability.
Consider low-cost, low-maintenance “lock-up-and-gos"; they rent out easily.
Build up a good track record.
For more detail, read: “Tips to go from renting to buying” by Smee.
An economist expects China growth at 9.5%, US money-printing, rising metal prices and trade- and current-account surpluses in SA.Read More
Bruce Whitfield asks personal finance advisor Warren Ingram to explain in detail the new laws affecting provident funds.Read More
You can buy R1 (or even one cent) worth of shares. "The key to getting started is to get started," says Charles Savage.Read More
Need new wheels? WesBank’s Lebogang Goaaketse discusses a popular method for making repayments more affordable.Read More
Distressed properties on auction are going for a song. Bruce Whitfield interviews property economist Francois Viruly.Read More
"It’s mandatory for medical schemes to pay for for the Covid-19 vaccine," says Dr Ryan Noach, CEO at Discovery Health.Read More
"Over the last month, it’s up 67%," says Farzan Ehsani. "Over the last year, it’s up 293%. These are dizzying numbers!"Read More
You may be missing out on riches beyond your wildest dreams. Or not. Here’s a 3-point checklist to guide your decision.Read More
"There’s a huge supply of properties for rent," says Tamira Gumzburg on determining what a market-related rental is right now.Read More
"There’s no real reason why people shouldn’t be able to shop around," says Tembinkosi Bonakele (Competition Commission).Read More