DURBAN - It almost always makes more sense to buy a home rather than rent, said Rudi Botha, Chief Executive of SA’s biggest bond originator BetterBond.
Simply because being a tenant means giving away what you would have spent on housing anyway, without gaining anything in return.
By contrast, home ownership is the easiest way for young people, especially, to accumulate personal wealth. This occurs as the value of the property appreciates over a number of years and the size of the outstanding home loan decreases month by month.
There are also several relatively easy ways to accelerate this process, such as paying an extra amount off your bond each month.
You can also maximise the possibility of value appreciation by buying in an area where your target price is in the lower tier of current prices in that area. That way, your home will have less vulnerability during any downturn and the higher-priced homes will help pull yours up during ‘hot’ markets.