Why renting can be better than buying in Gauteng

We are often told about the advantages of homeownership - how buying property is a sound investment and how over time, you will ultimately own an asset. However, for many people, renting is the right solution and the CSi Property Group introduces some of the top advantages of being a tenant.

The flexibility to move if you want to

In an ideal world, buying a property means that you should live there (or at least own it) for at least ten years in order to get a good return on your investment. Sometimes, that just doesn't fit in with our life plans. If you're living in a new town, trying to decide which part of your city to live in or considering semigrating to a different part of the country, then renting could definitely be the right answer for you.

Similarly, another of the advantages of renting is that it comes with a great sense of freedom. If there's something you don't like about a home, or about the neighbourhood that you've chosen, you can simply put in your notice at the end of your lease and move out. You don't need to worry about finding a buyer or the expenses that come with selling a property.

No rates, levies or maintenance costs

Being a tenant can be more affordable than being a homeowner, because while you still have to pay for water and electricity, paying the rates and levies will be your landlord's responsibility. And there are also benefits for tenants in terms of property maintenance. While you will need to maintain the property and keep it clean, if anything major goes wrong (like a burst geyser, flooding or broken swimming pool pump, for example) then your landlord will need to pay for the repairs. As a bonus, tenants don't need to pay for buildings insurance - although household contents insurance is your responsibility to pay for.

Access to amenities

Sometimes, the savings you get from being a tenant mean that you're able to live in a nicer area than you would if you were buying a home. This can mean living closer to work, to the city centre or to your favourite activities. As a tenant, you have the financial flexibility to look at a broader spectrum of homes.

No huge deposit needed

If you're thinking of buying a property, it's recommended that you have a 10% deposit saved up. If you're looking at buying an apartment that costs R999 999, that means you'll need to have a deposit of almost R100 000 saved up. While some banks are offering 100% bonds, the upfront costs of buying property are far higher than those of renting. In a typical rental, you'll be asked to pay one or two months' rent upfront as a deposit - and you'll get this money back when you move out, provided that you haven't done any damage to the property. It's also worth remembering that if you're looking to buy property, you'll also have to pay transfer fees (if your new home is worth R1 000 000 or more) and bond registration costs, as well as various smaller costs that are often unexpected.

Three things to know before you rent a property

• By law, your landlord needs to hold your deposit in an interest-bearing account. That means it can't be used as a month's rent if your finances become tight.
• Scammers are rife in the property rental industry. Rent through a real estate agency and don't ever sign or pay anything until you have viewed a property in person. Make sure that the agent you're using is reputable.
• A prospective landlord is likely to check your credit score. You can check this for yourself for free on the Transunion website.

The most important thing to find when you're looking to rent a property is a reliable, trustable property practitioner to help you. Look no further than the CSi Property Group if you're looking to rent in Gauteng.