Larger numbers of entrants to the country’s real estate market last year could create a shift in the renting instead of buying trend, says Carl Coetzee, chief executive of home loan originator BetterBond.
And in the coming months, he believes that this will be seen more. “Owning a home is almost always preferable to renting and if you are going to buy it is always better to do so sooner rather than later.”
Some of the reasons people who are renting should embrace home ownership as soon as possible, he says, include:
◆It is better to start paying off your own home, which will become an appreciating asset in your name.
◆It is possible to use your home to earn extra money in the short term. When you own a property, you can rent out a spare room, garden cottage or storage space, for example, or get a consent-use permit and use some space to accommodate a weekend or home-based business that will bring in additional income.
◆A home will help you build personal wealth in the longer term.
◆The opportunity to customise the property. When you buy a home, you can redecorate, renovate and improve it as you please You get peace of mind. By the time you are ready to retire, your home, hopefully, will have been paid off, so you will have complete security of tenure.
◆Avoiding price increases and future market fluctuations. The sooner you buy, the easier it will be to finance your home purchase. At the moment, for example, you will definitely need less income to qualify for a home loan than you will need in a year or two, when home prices will be higher.