Why renting could be your key to property success
Category Property
Why renting could be your key to property success
Owning property is still a deeply held goal for many South Africans. A home represents stability, legacy, and long-term financial security. But the path to ownership doesn't need to be direct, and in some cases, it may not be the destination at all.
Renting is increasingly seen as a strategic financial decision. Whether you're working towards a deposit or exploring more flexible ways to grow your wealth, renting can offer the space, stability and financial control needed to build your future on your own terms.
Control and predictability
Buying a home comes with major upfront expenses. Beyond the deposit (usually around 10% of the purchase price), buyers must also cover legal fees, transfer duty, bond registration and bank charges. Together, these can add up to hundreds of thousands of rands. And once the sale is final, the bills continue: rates, levies, insurance, maintenance and security, all of which must be factored into your monthly budget.
Renters, by contrast, generally pay a single, predictable monthly amount (in some cases, electricity, refuse and/or water and sewerage are separately for the tenant's account). They are also protected from the volatility of rising bond repayments and are better able to plan ahead with fairly consistent monthly costs, and in most cases, major repairs and maintenance are the landlord's responsibility.
In South Africa, renting can also allow people to invest in education, launch businesses and live in areas closer to work, schools or public transport, which they may not be able to afford to buy in just yet. It also gives you time to improve your credit score, reduce debt, research neighbourhoods and refine your understanding of what you really want before you buy.
Renting offers far greater flexibility than ownership: if your job changes, your needs shift, or your circumstances evolve, moving on from a rental is far less complicated than selling a property.
A 2025 article in Forbes outlines four key considerations when weighing up whether to rent or buy. One of the clearest advantages of renting, it says, is the ability to save aggressively or remain mobile while avoiding the commitment of a long-term bond. The article also highlights the value of keeping your capital liquid in an unpredictable economy.
Stay focused on your long-term goal
"A common mistake is signing a lease at the highest rent you can afford, simply for short-term comfort or lifestyle," says Paul Stevens, CEO of Just Property. Doing this undermines one of the key advantages of renting - the ability to save. If your rental takes up your full budget, there's little room to set money aside for a deposit, emergencies or other goals. Rather approach savings with the same commitment you would apply to a bond.
"A better strategy is to rent below your affordability threshold," he continues. "Say you aim to buy a R1.5 million home; let's assume the bond repayment for that would be around R15 000 per month. If you are disciplined and rent for R10 000, you can save the R5 000 difference towards your deposit; every year, you'd be putting away R60 000 and would have your deposit in just over two years - not counting interest or investment growth if your savings are in an interest bearing account. If instead you went for the fanciest house you could afford and spent the full R15 000 on rent, you'd take far longer to save for your deposit."
Renting can also allow you to invest instead of buy
While many tenants intend to buy their dream home one day, others believe that renting offers the opportunity to grow wealth through diversified investments, particularly in shares, ETFs or unit trusts. A home loan is one of the biggest debts most of us will ever take on. Although it may be productive debt tied to a physical asset, it still represents a major concentration of your wealth in one place. That carries risk.
Some investors argue that your money may be better put to work elsewhere. The long-term growth potential of equities, especially when held over the average term of a home loan, can be significant. Investing early, even modestly, creates the opportunity to benefit from compounding returns.
This doesn't mean buying property is the wrong decision but it reinforces the idea that renting, when combined with smart financial planning, can be a strategic phase in wealth creation.
Whether your goal is a home or a stronger investment portfolio, what matters is how intentionally you use this time. Either way, renting gives you options. It offers more freedom and less commitment, more liquidity and less risk, more financial control and less pressure.
At Just Property, we help our clients find homes that support their financial goals, whether they're saving for a deposit or planning a long-term investment strategy. Renting well is not just about where you live now - it's about where you're going next. Whether you want more or less out of property, Just chat with us!
If you have been thinking of buying your own home, then now might be just the right time to do so, according to the Seeff Property Group.
Know what you are in for compared to a rental, owning your own home does come with additional expenses. Aside from the monthly home loan repayments and utility and upkeep costs, a homeowner is also responsible for paying property taxes, something which tenants usually don't carry.
You may also have to budget for levies. If you buy in a complex or estate, there will be additional levies for the upkeep of the common property, and security. Ensure you get a list of the additional costs beforehand so that you are financially prepared. You should also be provided with the rules and other conditions pertaining to living in the complex or estate.
If the property is older, you may need to budget for more maintenance. With an older property especially, you may find maintenance issues popping up from time to time, or aspects which need upgrading. While the structure and certain fixtures such as a geyser may be covered by homeowners' insurance, you will need to budget for emergency repairs, as well as anything not covered by the insurance.
Keep your property maintained to retain its value. Building structures and fixtures deteriorate over time. Do regular maintenance like fixing leaky taps, broken hinges, handles, tiles and lights, cleaning gutters and so on to preserve your investment. This will be especially important if you decide to sell for whatever reason.
Be frugal with renovations and upgrades. Stay clear of fads and trends as these come and go. Since taste and preferences are unique to individuals, it is always advisable to stick with neutral upgrades which add value.
Keep your insurances up to date, both the homeowners' insurance and well as insuring the content. Make sure the property is properly secured, and regularly test the security features.
Seeff says owning your own home provides a foundation upon which to build a life, raise a family, and build wealth. There are now short-terms gains in property, plan properly, do your due diligence and ensure you know what you are in for. Invest in your property to ensure it not only retains, but grows in value.
Author: Property 24
