We all need somewhere to live and the age-old question has always been ”is it better to purchase a home or just to rent?” Here in Cape Town at the moment, the market is pretty buoyant whichever path you choose to take and there are some good reasons for either purchasing or renting residential property.
As we said in our last article on the purchase or rental of commercial property, the buying, selling or leasing of property is a serious business, as property is often amongst your largest assets. The legalities of property transfers therefore should be handled by Attorneys and Conveyancers, well versed in this area of specialisation.
Here are a couple of tips on the advantages of either purchasing or renting residential property…
Advantages of purchasing
There is nothing quite as satisfying as home ownership – it is great to know that you have something solid that belongs to you. Obviously, in most cases, a home is bonded, but owning a house gives you long term equity and a better standing if you need to raise collateral on loans.
Remember that owning your own home also makes it your legal property, which allows you greater freedom in its use. You can alter the property completely in any way you like including décor, landscaping and major renovations.
If you buy wisely, in time the property can become a huge asset too and contribute handsomely to your wealth profile and pension plans. There is an advantage to purchasing residential property to rent to others as an investment too, as this can give you great residual income in the long term.
So, purchasing residential property has many advantages providing the legal transfer of the property is professionally and expertly handled!
Advantages of renting
We don’t believe there are as many advantages to renting residential property, but in most cases you save on the initial expenses of transfer duties and attorney’s fees and this money could be invested elsewhere.
You might also be saving on paying rates and in some cases, rentals are cheaper than having to pay a bond, so renting could mean you have more expendable money in the short term. You still have to pay rent however and that money is never being invested in a property that you ultimately own.
We can advise you
As you can see there can be advantages to either buying or renting. As Conveyancers, we are experts at the handling of property purchases and we also draw up legally solid residential rental agreements to ensure that they protect both parties.
We will be happy to advise you which may be the better option for you when we understand your unique circumstances, and should you decide to purchase we can expertly facilitate all the documentation and transfer of the property.
Remember that this is a good time to initiate the transfer of property too, as over the December holidays things slow down at the Deeds office. Don’t hesitate to contact us should you need our help – we are always there for you.
Stay safe – and stay legally protected!