2022’s Big Home Decision: Buy or Rent?

April 28, 2022

There are pros and cons for both buying a property and renting a property. You should consider all the factors to decide what is right for you. We’ve listed some of the benefits and disadvantages of both becoming a homeowner, and being a renter.


Of course, it all comes down to affordability. Renting is still often cheaper than a monthly bond, depending on the type of property. In George, you’ll pay around R7,500 per month for a two-bedroom apartment. In the last quarter of 2021, the average monthly rent in the Western Cape was R9,413, according to PayProp. This is an increase of 1.7% from Q4 of 2020. It’s worth knowing that it is still the most expensive province to rent in and you’re looking at a third of rents in the province sitting at between R5,000 and R7,500, and more than 12% of rentals sitting at more than R15,000 per month. The upside is that your rent is often fixed for the term of your lease, so usually six to 12 months.

Although interest rates have climbed, they are still lower than they were in April 2020 and the 40 years previous. This means that the lending rates are pretty good, if you have all your ducks in a row to secure a bond. Find out more about what’s required to get a bond in our blogs The Buying Process: Part One and The Buying Process: Part Two.

There is still major competition between the banks, which are offering interest rate discounts and asking for lower deposits. They’re also approving more bonds than ever, which means that it is a good time for home loan applicants to apply. The average monthly bond repayment on a R1,000,000 home is less than R8,000. Of course, if you choose a variable interest rate bond, your payments are subject to rising and falling with the interest rate.

If you’re looking to enter the buy-to-let market, any interest rate cuts help you save money on your bond repayment, but you still receive the same rental income, equating to higher profits on your investment.

Long Term

The great thing about renting is that you can up and leave anytime, depending on the terms of your lease. So if your long-term outlook has you moving away from the area, then renting is probably the best option for you. Of course, the other side of a lease is that your landlord is under no obligation to renew it, so long-term letters will always have that hanging over their head, unless they’ve signed an extended lease.

For homeowners, one of the great long-term benefits is that the value of the property is likely to rise, and with it, the value of your personal wealth, lending itself to a profitable sale if you choose to move. For investors with a long-term outlook, there are excellent opportunities for capital growth, with the interest rates remaining so low. Your rental income could very well even cover the cost of your bond. The unfortunate downside for renters, is that as the value of the property rises, it’s likely that so will your rent.


If you are planning to stay in your leased property for a while, an advantage of renting is that if something goes wrong at the property, then it will be your landlord’s responsibility to fix it. Obviously, this is a disadvantage for home owners and landlords, as you’ll need to fork out for building maintenance and repairs. Fortunately, any improvements you do make to the property will more than likely increase its value.

Keep in mind that new build properties, like ours at Mooikloof Country Estate, require very little maintenance, if any at all, at least for the first few years. Our Kloofsig apartments have the additional benefit of having building maintenance covered by the low levies, which are between R879 and R1,320, depending on the size of your property.

When it comes to decorating your home, as an owner, you can do whatever you like. Well, with approval from body corporates and adhering to any municipal rules, of course. So you can really design the property to suit your tastes and think about the different improvements that can enhance its value.

Buying a Mooikloof Country Estate Property

Our phase one Oudekloof, and phase two Boschkloof, are now completely sold out. Our Kloofsig apartments phase one are now 50% sold and we expect the rest to be snapped up quickly. These gorgeous apartments are built to the high standard you can expect from the development team at Earp Construction. There’s also outdoor spaces with a stoop for the ground level apartments and a balcony for the first and second floor apartments, all with built-in braai areas. With prices starting at just R750,000, it can certainly work out cheaper to buy than rent if you get the right home loan deal.

If you are more interested in a house than an apartment, don’t despair. Our Diepkloof development starts soon, offering two and three-bedroom homes, with a garage and ample garden space. Join our mailing list to find out when these houses will be available to buy, by completing our enquiry form.

If you’d like to view or buy one of our apartments, contact our team today: www.mooikloofgardenroute.co.za/contact-us