When it comes to making any big decision, you should sit down and look at the pros and cons. When something is written down in black and white it should help you make the right decision. We look at the advantages and disadvantages of renting and buying property.
BUYING A HOUSE
– Security: It’s a long-term investment which gives you security and the opportunity to grow your personal financial wealth.
– Renting: You can rent out your property and create income which you can then put straight into paying off your home loan.
– Finance: It’s far easier to withdraw money if you need to make a large payment, as you can refinance your bond.
– Mobility: Buying a home is a commitment and it means you don’t have the freedom to simply pack up and leave.
– Profit: Depending on the economic conditions, you may not make a profit when you decide it’s time to sell your house.
– Responsibility: As the owner of the house, it’s up to you to ensure that the bond repayments are made on time.
RENTING A HOUSE
– Neighbourhood: You can rent property in a neighbourhood where it might be too expensive for you to buy.
– Termination: If you decide to move out, you simply give notice and leave without having to find a replacement tenant.
– Flexibility: As you’re not tied into a long-term contract, you have the freedom to move, areas, cities or even countries.
– Renovation: You need permission from the owner to make any alterations, and these are usually restricted.
– Lease: At any stage in your contract your lease can be cancelled and there’s no guarantee that it will be renewed.
– Investment: Because you’re paying off the owner’s home loan, you don’t have an opportunity for personal wealth creation.
As a GetMore member you can use your HOME benefit by phoning 084 11 438 48. We’re here to help you find and finance the perfect house, negotiate the best bond rates, take care of all the paperwork and even help you move.