Rent or buy? Complex web of factors involved
Decision usually not based purely on market conditions
Residential rentals in South Africa have nose-dived and tenants are sitting pretty, but the decision to rent or to buy is often driven by factors other than the market. "Generally speaking, within South Africa, there is a strong culture of owning and the desire to own one's own home both from an investment as well as a lifestyle perspective, and so this continues to be the dominant trend," says Andrew Golding, CEO of the Pam Golding Property group. "It's essentially a question of one's own financial situation and requirements rather than a case of one versus the other. If you can afford it, then it is certainly preferable to purchase your own home as this has always proved to be a sound medium- to long-term investment - and remains so. "This is despite the fact that there may be some valleys as well as peaks in the capital growth of the property along the way, depending on economic trends, the desirability of the property and its location, and so on. "Added to this, you would immedi...
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