With the most recent increase in South Africa's Repo Rate to 7.75% bringing the prime lending rate up to 11.25% there will invariably also be an increase in the cost of living as well as the repayment of any debt. Any first-time buyer will be asking themselves: Should I perhaps continue renting rather than purchasing a property?
Here Seeff elaborates on the main differences between renting and buying a home amidst the rising
cost of living so first-time buyers can make an informed decision when approaching the current real
estate market or even just considering purchasing a property.
Cost and Expenses
When owning a property, you are responsible for the payment of the municipal account, payment of
the levies if applicable, and your monthly bond repayment if you registered a bond over the property. A tenant is responsible for the rental payment that is usually paid monthly, and such other
expenses as may have been agreed upon in the lease agreement, e.g. water and electricity usage.
Risks and Benefits
As a tenant, you are renting a property that belongs to someone else. Depending on your
lease agreement there is a responsibility on your part to maintain the property in the same
condition and quality that it was when first you occupied the property. The risks and benefits of the property
are however for the owner, and this would include the benefit of any rental income in lieu of the
property as well as the maintenance of fair wear and tear at the property.
Needs and affordability
Before purchasing a home first assess your long-term needs. Are you willing to commit to owning a
property and the expenses such a purchase would bring or would it suit you better to continue
renting property? If you are considering purchasing property the first step would be to establish
affordability through getting pre-qualified by a reputable bond originator that would approach
several banks to secure the best interest rate.
Whether you are considering buying or renting property in Strand, contact your local market leader
in real estate. Home is Our story!