Owning your own home, especially for the first time, is one of the best feelings you could ever experience - it’s a mixture of pride, excitement and accomplishment, says Mike Greeff, CEO of Greeff Christie’s International Real Estate. There are several reasons why owning your own property is important – not only will it be your most valuable asset, but it is also a creation of wealth. If you are an aspiring homeowner and you are comparing the pros and cons of buying a home, keep reading.
Top three reasons why you should take that leap!
1. It’s a buyers’ market
The COVID-19 pandemic has no doubt increased financial stress with many South Africans needing to take a salary cut or who were unfortunately retrenched, but because of COVID-19 and its effect on the economy, the South African housing market now offers some of the best buying conditions than it has in years. Now is the ideal time to purchase a home, especially for first-time buyers. The interest rates are the lowest they have ever been and the prime lending rate of 7.25% makes the climate even more favourable for buyers to obtain a home loan.
2. Equity creation
Owning your own home is an investment and is considered a form of saving, says Greeff. Over time you build up equity in a valuable asset i.e. your home, and as you continue to pay off your home loan, the amount you owe reduces and the value of your asset appreciates. When buying a property, it’s important to consider your financial future. Purchasing property has long-term benefits as it not only grows your equity, as mentioned, but your wealth too and in turn, it provides you with a certain level of financial security. Additionally, if you are disciplined in paying back your home loan it helps you to build a good credit record which increases your financial stability for future investments and purchases i.e. a car or capital for a new business.
3. Creative license
One of the benefits of having your own home is that you can customise it to suit your lifestyle. If you want to renovate, it’s your prerogative – you don’t need to get permission from anyone. It’s easier to adapt your own home to your current needs and as those needs change, so can your home. For example, baby-proofing your home if you’re at that stage in life or converting the kids’ bedrooms into an office or gym if you’re empty-nesters. However, it is important to note that if you own a home on an estate or within a complex, you may still need to get approval from the Body Corporate. An added bonus is that certain improvements actually boost the value of your home, which in turn, boosts your personal wealth, adds Greeff. If you are in the financial position to buy the property and if you are able to put down a sizable deposit, then you should consider taking the next step towards financial growth and security. There has not been a better time to purchase property and the long-term benefits are endless.