4 Advantages of buying a house

Article summary

• Buying a home may be more expensive than renting, but will save you more in the long-term.
• Owning a home grants you a valuable asset that can be passed onto your heirs.
• You can forge your home in your own image, and create a space that caters to your requirements.

Buying a house may seem a daunting prospect at first, such that many may opt for the seemingly easier option of renting. But though you may fear the long-term commitment of buying a home, there are many advantages to doing so that make the short-term expense worth it in the long run.

The financial and psychological advantages of buying a home

Buying a home actually saves you more in the long-term than renting, as monthly home loan repayments add up to less than total rent over the same period; especially considering how rental prices are increased incrementally.

Furthermore, government subsidies such as FLISP for low earners, and lower house prices, make the prospect of home ownership a reality for many first-time home buyers. Here’s why you should consider taking advantage of these factors:

1. A home is a form of wealth

A home is the most valuable asset you can have. What’s more, it will gradually increase in value over time.

Once the home is paid up you’ll always have a roof over your head, no matter what happens, and you’ll be able to leave it to your heirs, giving them a significant head start in life.

2. You can craft it in your own image

A home is yours to do with as you wish, unlike a rented property where the landlord supervises any renovations.

The downside is you’ll be responsible for any repairs and maintenance that the home requires, but that’s worth the opportunity to make the space yours, with interior decoration and furnishings that match your tastes.

Renovations not only create a space that truly feels like home to you, but can add value to the home in the process.

3. You can draw from home equity

Equity refers to the difference between the market value of the property, and the amount you owe on the home loan.

You can take out additional loans using this equity as collateral. It can come as a lump sum of cash if you want to pay off some large expense, like a home renovation or the cost of a vehicle.

4. Security

With a rented property, circumstances may arise that require you to vacate the property, such as if the landlord wants to sell the property, or occupy it themselves.

But if you own a property, you don’t have to worry about being removed from it at any point.

Why now is a good time to buy…

South Africa is currently a buyers’ market, which means there are plenty of homes available, but not enough demand. This results in lower house prices.

In addition to that, a succession of interest rate cuts mean South Africa’ interest rate is at its lowest point in several decades. This makes for more favourable rates on home loans.

So if you want to take advantage of current conditions and purchase a home, ooba Home Loans offers a range of tools that can make the home buying process easier. Start with our Bond Calculator, then use the ooba Home Loans Bond Indicator to determine what you can afford. Finally, when you’re ready, you can apply for a home loan.