Young professionals with a financially secure job may be thinking about whether they should continue renting this year, or take advantage of the lower interest rate to invest in their first home.
READ: First-time home buyers in South Africa: Common mistakes and how to avoid them
While buying is almost always better than renting for various reasons, there are considerations to weigh for both, according to Samuel Seeff, chairman of the Seeff Property Group.
Renting is obviously a fairly risk-free option because as long as you can pay your rent, your accommodation should be secure. It offers flexibility and mobility since you are generally only tied to the lease period and can therefore move fairly easily if you want to relocate for a career move.
Renting your first home also enables young professionals to get used to looking after a property, managing living on their own, budgeting correctly for expenses, and paying rent and utilities on time.
Renting also means minimal maintenance stress as the landlord remains responsible for the property maintenance, from geyser bursts to roof leaks. The costs of renting are also considerably lower than buying as you do not have to pay for aspects such as property taxes.
READ: Buying a home for the future you: Why adaptability matters more than size
By renting for less than a bond payment would cost, you can take the "surplus" cash and invest it in high-growth portfolios or tax-free savings, potentially outperforming property growth in the short term. This way you can save for a deposit and costs to purchase your own home.
That said, renting means you are essentially paying someone else’s bond, and not investing against an asset, says Seeff. Therefore, if you are financially secure and plan to stay in one area for at least five to seven years, the benefits of home ownership far outweigh the convenience of renting.
Unlike rent, which is a pure expense, a portion of every bond repayment reduces your home loan debt and increases the equity in your property asset. The longer you own your property, the more the balance will shift from loan to equity, ultimately resulting in a fully paid off property asset.
Advice for first-time buyers
For first-time buyers, entering the South African market can be daunting. Antonie Goosen, founder of Meridian Realty, stresses considering long-term implications. “Buying isn’t just about current needs; think about resale value and future growth.”
He advises prioritising location, focusing on established or developing areas with access to amenities, schools, and safety. Research upcoming infrastructure and development projects, as these can affect property values.
Assessing fair pricing is crucial. “Comparative market analysis and working with a reputable agent ensures buyers aren’t overpaying. Online tools are helpful but in-person assessments capture unique property features,” says Goosen.
Future-proof features like energy efficiency, security, and flexible layouts enhance resale value. Budget for additional costs such as transfer fees, bond registration, and maintenance. A knowledgeable agent can guide first-time buyers, helping them avoid mistakes and find a property aligned with their budget and needs.
Whether a seasoned buyer or entering the market for the first time, strategic planning, flexibility, and expert guidance are essential. “Property is one of the most reliable ways to build wealth,” says Goosen. “By making informed choices, buyers can find a home that meets their needs now and continues to benefit them in the future.”
READ: 10 burning questions first-time home buyers ask
Seeff continues: Owning your own home provides stability. Unlike a rental where the landlord could decide at any time to sell the property, you will have a more secure roof over your head in your own property. While rent goes up annually, the monthly payment on your bond will remain fairly steady, save for interest rate fluctuations.
Home ownership also provides the freedom to renovate and adapt the space to your needs and wants. The home could grow as your family grows. By upgrading and adding to the property, you are investing in further enhancing the value of your property asset while enjoying a better quality of life.
Ultimately, Seeff says the choice comes down to whether you are financially secure enough to commit to a long-term home loan repayment, or whether you still need the flexibility of renting. With 2026 offering some of the best borrowing conditions in years, those ready to settle will find that the path to homeownership might now be ideal.
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