There are pros and cons to renting property. Renting suits many people because it offers a little more flexibility. Your career prospects might involve plans that don’t necessarily include you being in one location over the long term, or you just haven’t decided where exactly you would like to settle.
But let’s say you are pretty grounded as far as location goes, then the current state of low interest rates and high supply means that buying property really puts you in control of your monthly allocation of funds (for where you live), and what that can ultimately do for you.
The general perception is that paying a bond is a much bigger commitment than paying rent. When you consider the timeframe of a bond, then yes: the commitment is long term. But what you spend on a monthly basis is far more competitive than the perception might have you believe.
It helps to compare the figures. With the Prime Rate reduced to 7.25% in 2020, you could be owning property for less per month than you’re spending on rent. Take a look at this table of comparisons at one of our popular developments called Orchid Ridge:
If you could save up to R632 per month between renting and buying, wouldn’t you rather that your monthly commitment grows towards something you ultimately own?
So if “should I rent or should I buy?” is the burning question on your mind, we say: think interest rates! Consider the advantages of what that means to you in the long term, and how you can be sure your money really works for you.
We know that buying a home can be an overwhelming idea. That’s why we’re here to help you find what you love, do the sums and plan responsibly so that you can start living your way.
Think home. Think Reeflords.