Message from the CEO
Category Principal's Message
Words from our CEO
To Rent or Buy?
The answer depends largely on your personal profile and the current conditions of the property market.
When property prices and interest rates are low, the monthly cost of owning a home is more affordable, which makes it a Buyers Market. Low interest rates also result in more affordable rental prices, but as the interest rate rises, so will rental costs.
The interest rate can have a considerable effect on the property market and particularly consumers who are already Homeowners.
‘If a Homeowner has been offered a fixed interest rate, their monthly bond repayments will not be affected by the interest rates fluctuations. An interest rate which isn’t fixed, however, will have its benefits when the interest rate becomes lower as this results in lower bond repayments. In contrast, bond repayments are equally influenced by the interest rate rising, as this will result in increased bond repayments.’
We at Prime Property feel buying a home is a much better option rather than renting as it is a better long-term investment. While both a Tenant and Homeowner are subject to interest rate hikes, the Homeowner is paying towards their own property, and a Tenant receives no tangible benefits at the end of the lease. Prime Property also see’s buying a property as a good investment as it offers the possibility of financial growth.
Visit www.primeproperty.za.net to view our beautiful properties for sale and you too could own your own dream home.
Pranil Maharaj
Author: P Maharaj, property24
