Buying property vs renting - Is it more achievable in 2023?
Category News
A common thread binds the current generation of homebuyers; only 40% of young adults are interested in buying over renting. So is renting preferable to buying? Renting is generally considered less expensive because many of us believe owning a house is an unachievable goal. However, this is simply not the case.
As the saying goes, "no one is creating new land," the market continues to favour the buyer, and owning property is always considered a sound investment. This is, of course, provided you do your homework, ensure your budget is thoroughly planned out, and get the proper assistance from experienced Property Practitioners.
We'll look at some factors that elevate homeownership over renting, ensuring that your plans are grounded in tangible, appreciating assets.
Buying a home offers you a degree of control.
What are the elements that attract you to a home? The garden? The kitchen? Or maybe you see something beyond the old carpets and peeling wallpaper? When you own a home, it becomes a blank canvas to envision a space just for you and your family. Break down that wall to create an open-plan space?
There is simply nothing limiting when your name is on the title. The same cannot be said about renting because renting means you are restricted to what your landlord dictates. You may have some freedom in interior design, but for every change you make, you need to ask their permission and essentially add value to their property while helping pay off their bond.
Of course, control is also defined by the individual. Renting a home as opposed to buying has the benefit of no strings attached, and some of us simply enjoy living our day-to-day lives while utilising a home as nothing more than a checkpoint. Should the time come when our career takes us to faraway places, it's only a matter of giving notice. We have different needs at different stages of our lives; if you're looking to settle with your family, owning your home is clearly a preferable option.
Paying off a bond vs rentals
Bond repayments can be expensive, but depending on where you're located, so can rentals. It's essential to consider just how much you're paying for the benefit of lock and go vs having tangible ownership over your property.
Last year we saw a massive hike in interest rates, and while it levelled out at 10.75%, it still remains relatively achievable to buy your dream home over renting it. Remember, rentals have fixed rates, and your landlord has full control over when those rates increase. However, bond repayments, subject to interest rates, fluctuate. Homeowners are in a unique situation right now where they can save more money on bond repayments, providing them with a direct advantage over renters.
Key differences between renting and buying
Regardless of buying or renting, here are some key takeaways before signing that dotted line.
- It comes down to your individual preference, financial situation, lifestyle goals, and whether you're considering settling for the long haul or moving in the next few months.
- Rent generally covers your utility expenses. However, upfront costs, such as a deposit, are generally required. On the other hand, renting is flexible, the expenses are predictable, and the landowner usually covers all maintenance.
- Homeownership offers tangible and intangible benefits such as security, stability, and pride within your space.
If you want to buy or sell your home, contact one of our Real Estate Property Practitioners by following the link: https://www.homesofdistinction.co.za/agents/
Homes of Distinction CC holds a Fidelity Fund Certificate issued by the Property Practitioners Regulatory Authority.
Author: Bryce Anderson
