RESIDENTIAL
The Rental Option : Advantages and Considerations For many South Africans , renting provides a secure and comfortable living situation without the immediate commitment of homeownership . Renting avoids the significant upfront costs that buyers face , such as deposits , transfer duties and bond repayments . Additionally , renters are relieved of the responsibility for rates , taxes , insurance , maintenance , and repairs , freeing up resources for other priorities . For these reasons , renting is appealing to families establishing themselves in a new city , those with fluctuating incomes , youngsters at the start of their careers and contract workers who move from place to place .
Affordability and the Savings Advantages The biggest advantage of renting lies in its affordability . By strategically choosing a rental property below your maximum budget or sharing with housemates , you can unlock significant savings potential . While these choices might involve some discipline and effort , they are smart sacrifices that pay off in the long run . If your dream is to own a home one day , I strongly recommend that our tenants look to the future and , for a few years , focus on building up a deposit so they can buy their own home one day .
Discipline is Your Ally Develop a strict savings plan and allocate a predetermined portion of your income specifically towards your homeownership goal . Remember , discipline is key . Treat your savings like a fixed expense , as important as rent or groceries .
It ’ s also a good idea to consult a financial advisor about crafting a personalised savings and investment strategy that will consider your risk profile and accelerate your path to homeownership .
Far from being a financial deadend , renting can be a launchpad for future homeownership . This approach allows you to build your financial security while enjoying the flexibility and convenience that renting offers during your young and adaptable years .
54 MAY 2024 Real Estate Investor Magazine