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Renting can be costlier than buying

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The current interest rate of 7% means the monthly repayment on a R1 million home loan over 20 years would be just R7 753 a month, which is less than the rent charged on the same home in many suburbs.

The current interest rate of 7% means the monthly repayment on a R1 million home loan over 20 years would be just R7 753 a month, which is less than the rent charged on the same home in many suburbs.

In Rondebosch East, for example, says Adrian Goslett, chief executive of RE/MAX of Southern Africa, tenants can expect to pay rent of roughly R8 500 on a one-bedroom apartment.

Homes of this kind usually sell for between R850 000 and R1m, making the monthly bond repayment more affordable than rent. “There are so many opportunities for first-time buyers across South Africa right now. Those who want to stretch their budget even further should look for new developments to avoid the expense of transfer duties and related fees.” He adds: “But I would just advise buyers to leave room in their budget in case interest rates return to pre-lockdown levels.

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