To buy or not to buy? That’s the great dilemma facing potential homeowners… and it may sometimes seem easier to rent or even renovate. Leah Dennis explores all the options.
Making big, life-changing property choices comes down to understanding your financial situation, as well as your overall thoughts on each option. Whichever way you go, it’s always a good idea to start by researching the housing market. Don’t get in over your head; calculate the costs involved with each choice and create your own pros and cons list. Naturally, all courses of action will have advantages and disadvantages, which can make this a difficult choice to make. That’s why we’ve put together a guide to help you choose what’s best for you and your family…
Also read: Tips For Purchasing Your First Property
Buying
Pros:
- It’s around 20-30% cheaper on average to buy a home in South Africa.
- Most properties are usually near amenities such as shopping centres, schools, gyms, major highways, and public transport interchanges.
- The property may already have a garden or a pool, which means you won’t pay a fortune to construct them.
- It’s a lot quicker to buy a home than to build one. This is because securing a home loan, paying a deposit, and getting all the correct documents in order is a lot faster than starting to build from scratch.
- You can look for deals and compare prices with other properties.
Cons:
- It is possible that the house may be older, which means that it’s less likely to be energy efficient or technologically compatible.
- There may be some wear and tear, which could require expensive renovations to suit your style – keeping your budget in mind when searching for homes to buy.
- Some properties may be sold ‘turnkey’, ‘voetstoots’ or as is, and these usually come without a warranty. Make sure that you carefully inspect and research your potential purchase.
Building
Pros:
- It’s all up to you! From the paint colour to the cabinets, you’re free to build your dream home.
- There’s a sentimental factor to building your own home and being able to watch your vision for you and your family unfold. It’s a profoundly rewarding experience to be able to see your dream become a reality.
- Compared to older houses, new homes require less maintenance.
- Building codes and construction supplies will be up to date.
- Make your home a technological paradise or improve its energy efficiency by integrating the latest building trends. For example, you could install smart thermostats that can be controlled remotely via an app.
- Buying a plot of land is much easier than competing for properties that are already established.
- You can avoid some of the legal processes involved when buying a home from another person, and you’ll save on transfer fees.
Cons:
- It will be much more expensive to build a home than to buy it. However, remember that you could save money on renovations and maintenance at the end of the day.
- Generally, construction does not proceed according to schedule, so you may experience delays. You might have to find a place to stay in the interim, which could set you back even further.
- A construction project can also put a dent in your wallet when it runs over budget. Poorly managed projects can spiral out of control, so ensure you have an experienced project manager and construction team
Renovating
Pros:
- You can still live in an upgraded home, as long as you have enough square footage.
- There might be some sentimentality towards your home, and renovating means you can stay there.
- You can renovate your pad to your liking! You have complete control.
- Renovating your home can increase its value.
Cons:
- Staying in a rental while you’re working on your new digs will add to your costs.
- Renovating a house usually involves unexpected expenses.
- You could be overcapitalising in the project. Find out the average cost of a property in your area before you start demolishing. Also make sure that your renovation costs aren’t higher than the average price of a house.
- Future buyers may not share your tastes in terms of interior design and finishes. You may think a sage green wallpaper looks great in your bathroom and will never go out of style, but you might be hard-pressed to get others to see it your way.
- Before making any structural changes to your home, you’ll need to have your plans approved by a qualified, registered building inspector. In this case, always make sure you get certified credentials before employing anyone.
Ask yourself these five questions:
- Is there potential for my property to be renovated?
- How much will my property cost after the renovation? Will it be equal to or more than a brand-new one?
- Will the renovation be worth it? Will I make a profit?
- Renovations usually come with inconveniences as well as complications. Can I handle them right now?
- Would renting or buying my ideal property be the best option if I’m not able to renovate?
Words: Leah Dennis
Photographs: Getty Images, Shutterstock, Unsplash
