Real Estate Investor Magazine South Africa February 2016 | Page 36

RENTING Buying vs Renting The Pros and Cons of buying a property vs renting S hould you rent or buy a residential property? It all depends on where you are in life, according to Jonathan Davies, Pam Golding Properties Hyde Park area manager, who says that making the correct choice is entirely dependent on ones stage of life, financial situation and personal circumstances. “Many South Africans aspire to own homes, feeling a sense of pride in their property and preferring to pay off their own bond rather than paying rent. Others favour renting a property because they may not be able to afford a deposit on a home in their current financial situation, or they find renting more convenient to their particular lifestyle. The choice of whether to rent or buy really is a matter of individual preference and circumstance,” observes Davies. Stepping stone “The residential property market is of course subject to the economic vagaries of the future. Purchasing a well situated home is therefore critical and this remains a sound long-term investment. Indeed, the well-placed home can prove to be remarkably ‘recession proof ’ in tough economic times.” 34 FEBRUARY 016 SA Real Estate Investor “For large numbers of South African families and individuals, the allure of owning a property of their own is irresistible. Purchasing a home allows buyers to immediately enjoy the lifestyle benefits on offer and to develop the property according to their own particular tastes. They can invest time and resources into the home secure in the knowledge that are investing in developing their own particular property.” “Many use their first home as a stepping stone into the property market and then progressively ‘buy up’ to larger properties as their financial situation strengthens and their life priorities change, as they start a family and so on.” “Among the many other benefits of owning a property is that once the individual owns such a substantial asset it can be leveraged at a later stage in order to raise funds for a larger or more expensive home. This underscores the importance of purchasing the correct home.” The importance of location “We would advise the first time buyer to rather seek a modest property in a suburb where homes have www.reimag.co.za