Is renting a better short-term option for South Africans?

Is renting a better short-term option for South Africans?

For years, there has always been a debate on whether people should rent or purchase a property. However, the debate on whether you should buy or rent is not black and white. Of course, buying your own property might seem like a better alternative in the long run but, for many South Africans, purchasing a house also has its disadvantages, more so if you aren't financially ready. 

Homeownership comes at a high cost, and many individuals might not have the financial means to purchase or maintain a home. When someone is financially stable with a good job that pays them enough to buy a home, then it can have its benefits. But, for most, renting is the better short-term option. To understand why renting a flat can be the best alternative, read the article below. 

Lower housing costs 

There is a misconception that renting is money down the drain; however, this is the furthest thing from the truth. Owning a home is something you cannot take lightly as it is expensive. Not only do you have to take out credit to afford to buy a home, but you still have to pay for the upkeep of your home as well as tax and rates. 

With the interest you pay to banks, depending on your loan term, the costs of being in a long-term rental can be much more affordable than that of owning your own property. For many South Africans buying a home might not be the best thing, and with residential developments, you can find an affordable flat that you can turn into a home. 

You have more flexibility

You never know when an economy might take a hit, or when you or a family member could lose their income. This can cause financial strain, and it can lead to you not being able to pay your home loan. Many families have lost their homes, as well as the money they had put into paying for the financing, because of recession or unemployment. However, with renting, you have more flexibility as you can always move into a place you can afford. 

For example, JHC is a property company in Gauteng that understands how expensive the cost of living can be. This is why we have affordable flats to rent in Johannesburg that will not be hard on your finances, even during the worst of times. 

Decreasing property value

For the last two years, the value of a property has been decreasing in South Africa. And, while the cost of purchasing is still at a low, renting is the most suitable option. As a renter, property value doesn't affect you as much as a homeowner. And as a homeowner, you stand much more to lose once the value decreases. 

For example, you'll get less than you paid for should you wish to sell, and a decrease in property value can impact how much money you pay on your property tax and home loan. 

Final thoughts

Owning your own home might be a better option in the long run, but right now, renting in South Africa is the best financial option for many people. Yes, there are benefits to owning your own property, but we cannot shy away from the fact that with South Africa’s current economic climate; it’s best to hold off on the idea of purchasing a home. 

There is flat development in Gauteng that will meet your housing needs at an affordable price. So, contact JHC today and see which flats are available to rent and allow yourself the opportunity to save more money and live a hassle-free life.