As more South Africans approach retirement, the decision to rent or buy becomes increasingly significant, with both options offering distinct advantages.
According to Antonie Goosen, principal and founder of Meridian Realty, the right choice depends on individual financial circumstances and lifestyle priorities. “There is no one size fits all answer,” says Goosen. “Retirement planning needs to consider income, flexibility, and long term security.”
READ: Buying vs Renting: It is not a one-size-fits-all solution
Buying a property offers stability.
“Ownership provides certainty, particularly in terms of housing costs,” he says. “Once a bond is paid off, monthly expenses can be more predictable. It also allows for asset growth. Property remains a key component of wealth creation. A well located home can appreciate over time and form part of an estate," says Goosen.
However, buying comes with responsibilities. “Maintenance, rates, and unexpected costs need to be factored in. These can become more challenging later in life," he says.
Renting, on the other hand, offers flexibility.
“Tenants are not tied to a specific location and can adapt more easily to changing needs,” says Goosen. “This can be particularly valuable in retirement. It also reduces responsibility. Maintenance is typically handled by the landlord. This can simplify day to day living," he says.
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However, renting comes with uncertainty. “Rental increases and lease renewals can impact long term planning,” says Goosen.
Goosen advises retirees to consider their broader financial strategy.
“Liquidity is important,” he says. “In some cases, renting allows individuals to preserve capital for other investments or living expenses. Ultimately, the decision should align with lifestyle goals. Some retirees value the security of ownership, while others prioritise flexibility. The key is to make an informed decision based on personal circumstances,” says Goosen.
He adds that careful planning is essential. “Retirement is a significant life stage,” he says. “Taking the time to evaluate all options can lead to a more comfortable and secure future.”
READ: Renting vs. Buying in retirement
Morné Prinsloo, Residential Property Specialist RE/MAX Town and Country Roodepoort & Krugersdorp, says this is one of the most important property decisions many South Africans will ever face, and yet it often gets made in a rush, driven by emotion rather than by a clear-eyed look at the numbers and the lifestyle realities. Whether you own a home heading into retirement and are wondering whether to sell and rent, or whether you have been renting all your life and are now thinking about whether to buy, the decision deserves more careful thought than it typically gets.
"I am not a financial advisor, and I want to be honest about that. What I can offer is the property perspective, grounded in what I have seen working with buyers and sellers in Roodepoort and Krugersdorp for more than a decade, many of whom are navigating exactly this question," he says.
The Case for Owning Property in Retirement
Prinsloo says if you have managed to reach retirement with your home fully paid off, you are in a genuinely strong position. A bond-free property means your monthly housing costs drop to rates, levies if applicable, insurance, and maintenance. In most cases this is significantly less than what you would pay in rent for a comparable property. You have no landlord. You cannot be asked to vacate. And you can make decisions about the property without seeking anyone's permission.
"There is also the question of legacy. A paid-off property is an asset that can be passed to heirs, sold to fund care in later life, or used as security for other financial arrangements. For many South African families, the family home is the most substantial asset they hold, and there is real value in that.
"The equity built up over a lifetime of ownership also provides flexibility. A homeowner who no longer needs a large family property can sell, realise that equity, purchase something smaller and more manageable, and invest the difference to supplement retirement income. This is one of the more powerful financial moves available to retirees in South Africa, particularly if the property is in an area where values have appreciated over time," he says.
The Complications of Buying Late in Life
Prinsloo explains that if you do not already own property and are considering buying for the first time in retirement, the picture is more complicated. South African banks are generally reluctant to approve home loans for applicants who are over 65, and very few will extend a bond to someone over 70. Financial institutions assess affordability against income, and retirement income from pension funds, annuities, or savings is typically lower and less predictable than employment income. Each case is assessed individually, but buyers approaching retirement without existing property ownership need to go into any bond application with realistic expectations.
"If a bond is required, the monthly repayment also needs to be sustainable on a fixed income. Rates, insurance, and maintenance costs add to that baseline. And as you get older, the physical and financial burden of maintaining a property increases. These are not reasons not to buy, but they are factors that need to be weighed honestly," he says.
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The Case for Renting in Retirement
When it comes to renting, Prinsloo says, it offers something that ownership does not, and that is flexibility. If your health changes and you need to move closer to family or to a facility that can provide more support, renting makes that transition much easier. There is no property to sell, no transfer timelines to manage, and no market conditions to wait out. You give your notice period and you move.
"Renting also transfers the responsibility for maintenance and major repairs to the landlord. A burst geyser, a roof leak, or a plumbing problem that would cost a homeowner tens of thousands of rand is the landlord's problem if you are a tenant. For someone on a fixed income, the unpredictability of home maintenance costs is a real financial risk, and renting removes that risk.
"There is also something to be said for the simplicity of renting in a life stage where simplicity matters. Not everyone wants to continue managing a property, paying rates accounts, dealing with levies, and tracking maintenance schedules well into their seventies and eighties," he explains.
What Renting Does Not Give You
He continues to explain that monthly rent is a cost with no return. Every payment disappears without building equity, ownership, or any future financial value. Rent also tends to increase annually, often in line with inflation or above it, while a bond repayment on a fixed-rate loan remains stable and decreases in real terms over time.
There is also no guarantee of tenure. A landlord can choose not to renew a lease, sell the property, or require the tenant to vacate for various legitimate reasons. For someone in retirement who has built their life around a particular home or area, that uncertainty can be deeply unsettling. It is worth noting too that some landlords are hesitant to lease to elderly tenants, and access to quality rental properties in retirement-friendly locations is not always straightforward.
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Practical Factors That Often Get Overlooked
"Access to healthcare is something many retirees underestimate when making their property decision. A home that is inconveniently far from a hospital, a GP, a pharmacy, or family support is a liability in later life regardless of whether it is owned or rented. Location decisions in retirement are different from location decisions at earlier life stages, and it is worth factoring this in explicitly.
"Security is another consideration that weighs heavily for South African retirees. Sectional title units in secure complexes or retirement villages offer a level of physical security and community that freestanding homes often do not, and this is a genuine quality of life factor for many older South Africans," he says.
The Honest Bottom Line
"There is no single right answer to this question. For someone who is bond-free and in good health, continuing to own property in retirement often makes strong financial sense. For someone dealing with significant health costs, limited mobility, or a desire for flexibility and simplicity, renting can offer real advantages that outweigh the financial cost.
"What I would say to anyone facing this decision is to get independent financial advice alongside your property advice. Do the numbers carefully. Factor in maintenance costs, transfer costs if you are considering buying, and the real cost of renting over the long term. And make sure the decision you make reflects not just your financial situation but the kind of life you actually want to live in the years ahead," says Prinsloo.
Adding: "If you are in the Roodepoort or Krugersdorp area and are considering a property move in or around retirement, I am happy to give you a current market assessment of what your property is worth, or to talk through the options available to you in the West Rand market. Contact me directly for a no-obligation conversation," he says.
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