Owning or renting?

Owning or renting

Part of the Zambian dream that many people aim for is home ownership. Ask the vast majority of school going children and they will tell you they want to finish school, attain a degree, get a good job and buy a property. But this dream is unfortunately not for everyone. The biggest thing to fully comprehend is that buying a house is a lifestyle choice and a significant investment. Whether Owning or renting a property, there are benefits and setback to each. Here are a few that are worth keeping in mind before making a decision.

Benefits of renting

  • To start with, renting allows you to stay financially independent. This is due to the fact that you will not have substantial debt through a mortgage.
  • Secondly, you have the choice of securing either a fixed or period lease. To this end you can move around with relative ease instead of being tied to a property.
  • Thirdly, you have neither maintenance nor repair obligations. The landlord or property manager is responsible for handling maintenance and subsequent repair issues.
  • It is also possible to rent a property in an area you may not be able to buy in.
  • Another advantage is that rentals usually stay at a constant amount for an agreed tenancy. This is in contrast to paying a mortgage that has varying interest rates.

Setbacks of renting

  • To start with, the landlord has the right to not renew your lease at the completion of your tenancy. This could be quite a huge inconvenience and a costly one at that.
  • You could also struggle to find a rental property that allows pets. This could make the task of finding a home tricky if you do have pets.
  • Moreover your landlord can increase your rent. Subsequently leaving you to pay more in rentals or leave the property.
  • It is also quite difficult to make alterations to rental real estate. Ultimately making it frustrating to personalise and customise the property to your tastes.
  • Furthermore, there are significant costs associated with the rental process. Examples include; letting fees, security bonds, and advance rentals.

Pros of owning property

  • Property investment is a secure and stable investment. In addition a property is a valuable asset and long-term investment.
  • It is also up to your discretion what to do with the either the building or the land it sits the. All within council regulations of course.
  • An added bonus to property ownership is the equity you can build up over time. As a result this can assist you secure and buy more properties and add to your portfolio. In addition you could simply use this equity to secure financing for renovations and other property upgrade projects.
  • It is also possible to have pets at your property if you’re into them.

Cons of owning property

  • One of the greatest setbacks to owning a house is the cost of acquiring one. Unless you have substantial cash lying around you will need to secure a mortgage. This constitutes a long-term commitment that is not to be taken lightly.
  • Secondly, it can be near impossible and time consuming to save up for a home deposit. Many lenders require at least 10% of the purchase price, which amount to a lot of money.
  • Property acquisition also has many associated costs such as stamp duty, lawyer fees, and property inspections.
  • In addition there are numerous on-going expenses that include maintenance, repairs, council rates and taxes.
  • Location of where you buy is determined by your budget. This could subsequently lead to you buying a home a less desirable able due to the cost.

At the end of the day the ultimate decision is yours and should be based on what best suits your current and long-term needs and goals.

Compare listings

Compare