Buy or rent? Here's what the EXPERTS suggest

The South African

7 days ago

With many South Africans weighing up the pros and cons of renting versus buying property, experts say owning your own home remains the smarter long-term financial decision – especially in the current market.
According to Samuel Seeff, chairman of the Seeff Property Group, purchasing a property allows individuals to build wealth and security by investing in an appreciating asset, rather than paying rent with no return.
'Each mortgage payment contributes to building equity in your home,' says Seeff.
'In contrast, rent is simply an expense with no long-term benefit.'
As the outstanding loan decreases and property values increase over time, homeowners gain a growing asset that can be leveraged to achieve future financial goals.
This makes buying a home both a savings mechanism and a long-term investment.
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Beyond the financial advantages, Seeff highlights the stability of homeownership.
Owners are shielded from uncertainties such as rent hikes, non-renewal of leases, or landlords selling the property.
'You also gain the flexibility to renovate or upgrade your home to suit your lifestyle – something renters often can't do,' he adds.
'This not only improves your quality of life but also enhances the value of your property.'
Property remains a solid asset class and a reliable hedge against inflation, Seeff explains.
While rental prices tend to rise year on year, home loan repayments can remain relatively stable over time – subject to interest rate fluctuations.
By making extra payments, using bonuses, or investing spare funds into a home loan, homeowners can reduce their debt faster or build equity more quickly.
A major advantage in South Africa is the accessibility of home loans.
Many banks continue to offer 100% financing, sometimes even including transaction costs, making it easier for first-time buyers to enter the market.
In fact, a recent survey revealed that 46.5% of home loans granted in recent months were for first-time buyers, highlighting ongoing demand and opportunity in the sector.
Seeff encourages financially secure individuals to act now, noting that property prices are continuing to appreciate.
'The longer you wait, the more you're likely to pay,' he warns.
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