Why renting could be smarter than buying property right now

The decision between renting and buying property remains one of the biggest financial choices most people will ever make.

Whether you rent or own, housing will likely be your single largest expense over your lifetime.

But despite the emotional appeal of owning property, Galileo Capital’s Warren Ingram says buying is not always the best move.

“It’s never going to be a one-size-fits-all,” he said.

The real cost of owning a home

Buying a home involves far more than just a monthly bond repayment.

Upfront costs alone can be steep.

Ingram says buyers should expect to pay around 10% to 12% of the property price in transaction costs. These include transfer duties and legal fees.

And that’s to get in.

Ongoing costs quickly add up too:

—Municipal rates

—Levies (for estates or apartments)

—Insurance

—Maintenance

Maintenance alone can cost between 1% and 2% of the property’s value each year.

On a R2 million home, that’s roughly R20,000 to R40,000 annually.

“Home ownership is simply not just the bond,” Ingram said.

When buying a home makes sense

Buying becomes more attractive when your life is stable and predictable.

The biggest factor is time.

If you plan to stay in one place for at least eight to 10 years, buying starts to make financial sense.

“I’m happy to lock myself into this house… for at least the next eight and ideally 10 years.”

This often aligns with major life stages, such as settling near a child’s school.

Other key conditions include:

—Having at least a 10% deposit

—Being able to match or improve on your current rent with bond repayments

—Having a solid emergency fund

Ingram recommends at least six months’ worth of expenses saved before buying.

When renting is the smarter option

Renting offers flexibility, and in many cases, that’s its biggest advantage.

It may be the better choice if:

—Your income is unstable

—You move frequently for work

—You’re early in your career

—You’re unsure where you want to settle

“Putting down your roots too early… could be a real burden,” Ingram warned.

Renting also makes sense when moving to a new area.

Trying before buying can prevent costly mistakes, especially in locations that may not suit you year-round.

Don’t treat your home as an investment

One of the biggest misconceptions is that property is always a good investment.

Ingram cautions against this thinking.

“You should not view it as an opportunity to make money.”

Property markets change, and past performance is not guaranteed to continue.

He warns that buying based on past price growth is like “driving… only looking in the rear-view mirror.”

The hidden trade-off: opportunity cost

Buying property also ties up a large amount of money in a single asset.

That comes with risk.

Instead of putting everything into one property, that money could be invested elsewhere and diversified.

Overcommitting to property can limit financial flexibility and growth.

The bottom line

There is no universal answer to whether renting or buying is better.

The right decision depends on your:

—Financial stability

—Career stage

—Lifestyle needs

—Long-term plans

For some, owning a home is the right move.

For others, renting is not just easier, it’s financially smarter.

Related reading:

All the things you need to consider when buying a home

Warren Ingram breaks down the true cost of ownership, from transfer duties to maintenance, and explains why buying only makes sense if you stay put long term.

South Africans prefer renting over buying property – survey

A major survey shows affordability, credit records and high interest rates are pushing many South Africans toward renting.

South Africa's property market is likely to turn the corner in 2026

Tight housing supply and rising demand are shaping both rental and buying markets, with location playing a critical role in affordability.

Tension between landlords and tenants is rising in SA

Rental pressures, rising costs and disputes highlight the growing strain in South Africa’s rental market.

Want to buy a property? You may want to reconsider your car loan

Experts warn that existing debt, especially car finance, can reduce your chances of qualifying for a home loan and strain affordability.

For more information, listen to Ingram on 702/CapeTalk’s The Money Show using the audio player below: